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Dallas Company Buys Sears, Doctors Hospital Site for $44M

3 min read

An affiliate of Provident Realty Advisors Inc. of Dallas bought a five-building, 30-acre development in midtown Little Rock for $44 million.

The sellers are a pair of New York investment groups, Little Rock Medical Associates Ltd. and Little Rock Medical Associates IV LLC. The property, at the northwest intersection of University Avenue and Interstate 630, includes the former Sears store on University Avenue, which closed in July, and the Doctors Building.

A news release from ARK Commercial & Investment Real Estate of Little Rock, which represented the seller, said Wednesday that the buyer plans to redevelop the portion of the site fronting Interstate 630, “potentially to be anchored by a grocery store development.” The rest of the property will retain its current use, according to the news release.

“We have owned this property for close to 40 years,” Edward Matthews, managing general partner of LRMA, said in the news release. “It’s an incredible site, and we saw a lot of interest from prospective buyers. However, we believe the proposal we accepted presents a great fit for the site, and for the people who live, work, and shop in the area.”

The deal encompasses the 212,906-SF Doctors Building at 500 S. University Ave., the 69,734-SF Midtown Medical Park Building at 6119 Midtown Ave., the 56,060-SF Doctors Plaza at 600 S. McKinley St., the 162,082-SF former Sears store at 600 S. University Ave. and the 14,137-SF former Sears Auto & Tire Center at 602 S. University Ave. along with the adjoining parking lots and parking deck.

In its news release, ARK said the Doctors Building and the Midtown Medical Park building “will remain as currently used for the foreseeable future.”

While financial terms of the deal were not disclosed, a source confirmed the $44 million figure for Arkansas Business.

Arkansas Business reported last week that another Dallas company, Shop Companies, has been marketing a portion of the 30-acre development as the Shops at University Village

The commercial real estate firm is seeking a grocery store to anchor Shops at University Village, according to a brochure for the project obtained by Arkansas Business. The brochure shows a new 123,000-SF building and two new outparcels on the property, about 14,000 SF each, near where the Sears Auto center is today.

A senior partner at Shop Companies would not comment about the company’s plans.

In a news release, ARK said investment and development of the property could total “over $100 million.”

“This deal means more jobs for the people of Little Rock and it helps revitalize our local economy,” Jeff Yates, ARK’s managing partner, said. “The sale also presents a prime opportunity for the continued redevelopment of our growing Midtown area. This is great news for Little Rock.”

Sears closed the store in July, part of a round of store closings by its parent company, which also owns Kmart.

Other retail destinations in the area include Park Avenue, Midtowne Little Rock and Park Plaza Mall.

Provident Realty Advisors has owned other property in Little Rock. In December, Arkansas Business reported that one its affiliates, Holcomb Heights 2013 Ltd., had sold the 125-unit Holcomb Heights apartment complex in Riverdale to an affiliate of StoneRiver Co. of Birmingham, Alabama, for $5.44 million.

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