The Promenade at Chenal: A Transactional History

The Promenade at Chenal shopping center in west Little Rock (Photo provided by Tanger)

Tanger Inc. purchased the heart of the Promenade at Chenal, a 20.84-acre tract home to eight buildings with 193,077 SF of leasable space under roof, as part of a $73 million transaction on Dec. 10.

The publicly traded real estate investment trust headquartered in Greensboro, North Carolina, also acquired as part of the deal the 32,992-SF AMC Theatre and two outparcels where the 9,538-SF Sullivan’s Steakhouse and 24,312-SF HomeGoods store do business.

The seller was TOCU XIV LLC, a wholly owned subsidiary of PIMCO Tactical Opportunities Master Fund Ltd. The PIMCO affiliate gained ownership in December 2019 when these properties were forfeited by Little Rock Development Co. LLC in lieu of foreclosure.

Ownership of the limited liability company was controlled by two New York ventures, O’Connor Capital Partners and Wafra Investment Advisory Group Inc. The duo acquired a 90% stake in the west Little Rock lifestyle center through O’Connor/Wafra Retail Partners for an undisclosed sum in 2012. Red Development of Kansas City, Missouri, retained a 10% share and continued managing the project.

In September 2018, PIMCO acquired control of the project’s $51 million mortgage from PFP Holding Co. III, an affiliate of Prime Finance Partners of Chicago.

Construction of Promenade at Chenal was backed with a September 2006 funding agreement of $129 million from LaSalle Bank of Chicago.

Little Rock Development Co., purchased the Promenade at Chenal site for $10.25 million in September 2006 as part of a 37.8-acre deal with Deltic Timber Corp. of El Dorado. Over the years, six outparcels were sold and developed into:

► Region Bank branch. The bank acquired the 1.64-acre site for $1.2 million in June 2008.

► McDonald’s. The 1.46-acre site was purchased for $775,000 in January 2012 from Little Rock Development Co.

► An 8,880-SF retail building that now houses AT&T Wireless, GolfTec and Gandolfo’s Deli. The project was acquired for nearly $4 million in December 2023 by Akshar 4 LLC of Southlake, Texas from Chenal Promenade LLC, an affiliate of HDA Properties of Los Angeles.

The limited liability company bought the 1.44-acre development for $4.3 million in July 2015 from Promenade at Chenal Little Rock LLC, an affiliate of Thompson Thrift Development Inc. of Terre Haute, Indiana.

The site was purchased for $1 million in May 2014 from Little Rock Development Co.

► A 4,644-SF Verizon Wireless store. The project was bought for $3.8 million in September 2015 by Veri-Little Rock LLC of Tiburon, California. The seller, PDG Chenal I LLC of Franklin, Tennessee, purchased the 1.34-acre site for $925,000 in February 2015 from Red Little Rock Land LLC, an affiliate of Red Development.

► City Silo Table + Pantry and vacant space. The 7,564-SF project was bought for $1.28 million in January 2022 by Promenade RE LLC, led by Michael Bodnar and Jim, Tommy and Jake Keet. The 1.46-acre development was sold by RHV LLC, an affiliate of Arvest Bank of Fayetteville.

The bank recovered the property in July 2021 from Beefam LLC and Bonerts MV LLC, both of Santa Ana, California, in a deed in lieu of foreclosure valued at $2.2 million.

The limited liability companies purchased the property, home to Pei Wei and Mattress Firm at the time, in February 2017 for $4 million. The seller, an affiliate of Thompson Thrift Development, acquired the site for $925,000 in October 2015 from Red Little Rock Land.

► LR Nails and Iconic Salon Suites. HPA Properties LLC, led by Tan Hong, bought the 1.56-acre site for $679,000 in August 2019 from Little Rock Development Co.