Natural Capital, the Arkansas private investment firm that made headlines buying the Doctors Building in 2019 and 850 affordable housing units across the state in late 2020, has completed a $24.8 million purchase-and-leaseback deal with a Fayetteville specialty construction firm.
Whispers learned last week that Natural Capital had bought three properties on North Shiloh Drive from Kimbel Mechanical Systems: the company’s headquarters building and two warehouses, altogether more than 285,000 SF. The company will remain in the properties under the sale-leaseback arrangement.
The deal, in two parts, was brokered by Cushman & Wakefield/Sage Partners and financed by Simmons Bank, which provided a loan of $19 million. A total purchase price of $24,782,169 was recorded by the Washington County assessor’s office.
Natural Capital’s investment includes a $500,000 expansion of the headquarters building at 1936 N. Shiloh. That work began last month and is expected to be completed by April 2022, the buyers said.
Brad Henry, managing partner of Natural Capital, called the deal an exciting chance to partner with a great company in Kimbel, which specializes in plumbing, HVAC and electrical work in new construction projects. The deal was Natural Capital’s ninth investment as a firm. “Investments like these are exactly why Natural Capital exists,” Henry said.
The group focuses on private investment opportunities in Arkansas and “the heartland.” So far its properties are in 11 Arkansas cities as well as investments in Austin, Texas; Minneapolis; and St. Louis. Partners include Todd Simmons, CEO of Simmons Foods; Mar-shall Saviers, CEO of Sage Partners; and Brock Gearhart, president and CEO of Greenwood Gearhart in Fayetteville, an investment advisory firm.
The Kimbel properties are the former home of Fayetteville startup sensation Acumen Brands. The seller was Magnum Properties LLC, led by Rob Kimbel, which acquired them for $2.9 million in 2004.
“Purchasing Kimbel Mechanical Systems’ headquarters and executing a long-term, sale-leaseback is a win-win for all parties,” Saviers said, citing continued growth opportunities in the industrial real estate market. “This is a great investment for Natural Capital.”
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