A $42 million foreclosure sale was the largest commercial real estate deal in Pulaski County during 2011. This week’s list, the first such published by Arkansas Business, includes 30 deals ranging from just under $2 million and carrying a total value of more than $183 million.
The courthouse transaction formalized the sale of Shackleford Crossings to an investment group led by the Dallas office of Invesco Real Estate. The group had earlier acquired the debt on the west Little Rock retail center from M&I Marshall & Ilsley Bank of Milwaukee.
That private transaction with M&I, the de facto owner of the project at the southwest corner of Interstate 430 and Shackleford Road, didn’t make the public record. But the July 14 foreclosure sale that finalized the ownership shift from Shackleford Crossings LLC, formed by bankrupt developer Steve Clary, did.
Occupancy at the 271,675-SF lifestyle center stands at nearly 75 percent. Land for a planned 10,000-SF expansion remains dormant.
Beyond a change of ownership, other notable events at Shackleford Crossings during 2011 included the opening of ArkansasBlue, the first health insurance store for Arkansas Blue Cross & Blue Shield, and the $670,000 sale of a 0.82-acre outparcel for a Boomerang car wash project.
The ArkansasBlue lease covers 4,600 SF. Other tenants at Shackleford Crossings signed during 2011 include Primrose Accessory, 5,500 SF; and Yo’ Rocks, 2,000 SF. Activity that began picking up last year has continued into 2012.
“It’s busy, but nothing is signed, sealed or delivered,” said Sean Glancy, leasing broker with Irwin Partners. “But things seem to be moving, and people are feeling more optimistic.”
Retail properties and apartment projects each accounted for eight of the 30 entries in the list. Mid-America Apartment Communities Inc. of Memphis added to its west Little Rock holdings in a $28.1 million purchase and a $2.6 million site acquisition.
The real estate investment trust bought Palisades at Chenal Valley. The 248-unit project joined other Little Rock multifamily properties purchased since 1994: Westside Creek, 308 units; Calais Forest, 260 units; and Napa Valley, 240 units. Mid-America is in the midst of developing the 312-unit Ridge at Chenal project after buying the nearly 26-acre site at 5400 Chenonceau Blvd. last year.
When this property comes on line, the company’s apartment count in west Little Rock will approach 1,400 units.
The company has no presence elsewhere in the state.
“Multifamily is the property type of choice for commercial-type investors,” said Jerry Webster, president of The Webster Corp., a Little Rock firm specializing in apartment brokerage. “The fundamentals are great, and the market is strong.”
Webster noted that there was some uncertainty in the single-family market, although in Arkansas such concerns could be undeserved.
However, there is still some nervousness, and there seems to be a trend of people downsizing.
Also helping boost the apartment market are readily available funds to make deals happen.
“You can go to Fannie Mae, Freddie Mac or FHA and get guaranteed financing,” Webster said. “You can’t say that about any other property type, and the rates are excellent.
“You can borrow apartment money at a 4.5 percent fixed rate for 10 years. You won’t find that for an office project.”
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