Posted 11/26/2012 12:00 am
More pieces of Gene Cauley’s real estate portfolio were recycled through a lender-driven transaction.
Two parts of the Bowman Plaza project at 4700 Col. Glenn Road were purchased for $10.17 million.
New ownership is divided among three entities: CG-Bowman Properties LLC, led by Edward Dickey, 53.3 percent; SS One of Arkansas LLC, led by Larry Middleton, 34.7 percent; and LAF Bro-thers Properties LLC, led by Stephen LaFrance Jr.
The deal included a 111,000-SF of-fice-warehouse on a 9.9-acre site and a 64,304-SF office-warehouse on a 4.9-acre site.
Who calls these properties home?
Little Rock Climbing Center, Cintas, Your Total Fitness Shop, Westover Com-munications, DAC Technologies Group International, My Home Church, Summit Dental Group, Mac Papers and Electronic Imaging Services.
Before the sale, Bowman Plaza had been under the care of a court-appointed receiver since July 2010.
That receivership move was at the behest of Bank of America in Charlotte, N.C. BOA inherited the project’s mortgage through the acquisition of Lasalle Bank of Chicago.
The Bowman Plaza debt stood at nearly $14.5 million when Little Rock’s Flake & Kelley Management Inc. was given the assignment to oversee the project.
Cauley’s appearance in the ownership picture dates back to at least February 2006, when he made a personal guaranty on the original $14.8 million loan.
His financial world began unravelling publicly when it was discovered he had criminally breached his fiduciary duties as an attorney.
In November 2009, Cauley was sentenced to prison for stealing $9.3 million from a client trust account.
The former lawyer who specialized in class-action securities cases is scheduled to be released from federal prison in April 2016.
More Cauley Flotsam
While scoping out the Bowman Plaza deal, we came across some more former Cauley property that found its way to the ownership of Stephen LaFrance Jr. and his brother, Jason.
The tandem March 2010 transactions each weighed in at $4 million but got lost in the shuffle of Cauley’s great real estate liquidation.
CG Corporate LLC, led by the LaFrance brothers, purchased the two 61,500-SF warehouses at 10600 and 10620 Col. Glenn Road from two Cauley-controlled entities.
These projects, as well as the Bowman Plaza buildings, were developed by Leonard Boen.
The LaFrance brothers hold a 51 percent stake in CG Corporate. Other investors include Mid Corp Investments LLC, led by Larry and Mark Middleton, 13 percent; Jayhawk Holdings LLC, led by Joe Courtright, 13 percent; and K&D Huchingson LLLP, led by Kevin and Dianna Huchingson, 9 percent.
Rounding out the CG Corporate investors are TOCS Investments LLC, which is led by Dr. Scott Schlesinger, 8 percent; CJC Properties LLC, led by Paul Hart, 4 percent; and John Pierron, 2 percent.