A Chicago real estate company bought the Chancellor Hotel in downtown Fayetteville for $31 million.
AJ Capital — the AJ stands for Adventurous Journeys — bought the property and plans to convert the Chancellor into a boutique Graduate Hotel; Graduate Hotels are in college towns. The 192,000-SF Chancellor is at 70 N. East Ave. and has 207 rooms. It will stay open as the Chancellor as renovations turn it into a Graduate by next fall.
AJ Capital said it has 13 hotels operating and 12 in development, and the soon-to-be-renamed Chancellor is listed as a coming-soon hotel. Graduate Hotels are open in Oxford, Mississippi, and Athens, Georgia, and are scheduled to open in Columbia, South Carolina, and Nashville, Tennessee. Razorbacks fans know those cities as the homes of SEC rivals Ole Miss, Georgia, South Carolina and Vanderbilt.
“We couldn’t be more pleased and excited about our acquisition of the Chancellor Hotel and becoming a longtime member of the vibrant and dynamic Fayetteville community,” said Graduate Hotels President Tim Franzen. “When we launch Graduate Fayetteville next year, it will be in continuance of our ever-expanding presence across the country and, more specifically, throughout numerous SEC markets in the South.”
AJ Capital got a $29 million loan from CrossHarbor Capital Partners of Boston for the purchase. The seller was Southwind Hospitality Holdings LLC, a partnership of Sam Alley of Little Rock and Ike Thrash of Hattiesburg, Mississippi, that bought the Chancellor for $3.8 million in 2011.
Signature Square
A 45,000-SF shopping center in Springdale sold for $3.35 million.
Sosa Properties, led by Saul and Karina Sosa, bought Signature Square in the 1300 block of East Robinson Avenue. The seller was Signature Square Springdale LLC, led by An Wei Feng and Tian Quan Zheng.
The center, anchored by Mazzio’s Pizza, was originally listed for sale at $3.7 million by Flake & Kelley Commercial Northwest. Flake & Kelley said five retail or office spaces were available for lease.
BancorpSouth Bank of Tupelo, Mississippi, assisted the purchase with a loan of $1.8 million.
Former Eye Clinic
Washington Regional Medical Center, through its subsidiary Washington Regional Medical Services, paid $2.9 million for the former home of McDonald Eye Associates on North Northhills Boulevard in Fayetteville.
The clinic is 12,000 SF and sits on a half-acre lot.
The seller was Township LLC, led by ophthalmologist James McDonald II, who acquired the land for $150,000 in 1990.
The McDonald Clinic recently moved to North Steele Boulevard. It also has a Rogers location.
Prairie Grove Dollar General
A Springdale couple paid nearly $1.5 million for a Dollar General in Prairie Grove.
George and Darla Anderson bought the 10,700-SF retail store at 1001 E. Douglas St.
The seller was PB General Holdings LLC, led by Leonard Boen of Little Rock. Boen acquired the property for $275,000 in 2015.
Legacy National Bank in Springdale assisted the purchase with a loan of $417,000.
Dragon’s Lair
A Little Rock investor group paid $450,000 for a former gift shop on South School Avenue in Fayetteville.
Dragon’s Lair, across the street from the Fayetteville Public Library, is a 2,100-SF building; there is also a 1,100-SF building on the corner lot.
The buyers were South School Exchange Holdings LLC, led by Billy Roehrenbeck, and Flywheel LLC, led by John Coleman. The exchange subsidiary bought 80 percent of the property and Flywheel bought the remaining 20 percent.
Roehrenbeck is the owner of Pulaski County Title. Coleman is the regional business development director at Entegrity Partners, an energy company. The mailing address for both of the buying LLCs is Entegrity’s headquarters in Little Rock.
Armor Bank in Forrest City assisted the purchase with a loan of $360,000. The sellers were Hayden and Molly Johnson of Winslow.
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