Rogers, Arkansas – CapRocq Core 2 Real Estate Fund, an Arkansas-based real estate partnership, today announced that it has sold the Village on the Creeks portfolio of assets to a private investment group for $32.25 million. The scenic office and retail mixed-use portfolio is comprised of 220,153 square feet across 20 buildings on more than 22 acres along Interstate 49 just south of Bentonville, Arkansas.
The transaction provided CapRocq the opportunity to close a sale in today’s challenging capital market conditions by working with the buyer and their Arkansas-based lender to complete the sale. The portfolio was just over 93% occupied at closing, and with many tenants in the medical industry, Village on the Creeks benefitted from an extremely stable rent roll. The property’s 66 tenants provide everything from medical services to an art studio, enabling Village on the Creeks to demonstrate stability in today’s environment.
Village on the Creeks’ incredible variety of tenants, combination of office and retail offerings, unique private lake amenity, and access to walking and biking trails creates a unique sense of place that cannot be recreated. Its central location between Bentonville, Springdale, and Fayetteville draws customers and clients from those areas as well as further outlying markets, resulting in a much larger trade area and making it a one-of-a-kind destination.
Marketed for sale nationally and internationally by Kenai Capital Advisors in collaboration with Colliers International | Arkansas, this institutional-quality asset received considerable attention.
“Northwest Arkansas is increasingly being recognized as a hub of growth and innovation, fueled by a combination of low cost of living, high quality of life, and a stable and increasingly diversified economy,” Jules Sherwood of Kenai Capital Advisors, said. “We received significant investor interest from a broad national audience that included market participants in the family office, REIT, and private equity spaces seeking Village on the Creeks’ stable, risk-adjusted returns at a very attractive cap rate.”
“Northwest Arkansas has experienced exponential growth and success over the past few years,” Kevin Huchingson, chairman and CEO of Colliers Arkansas, said. “Village on the Creeks is nearly fully occupied, and this successful transaction is evidence that there is still strong demand for commercial real estate, despite the short-term uncertainty related to COVID.”
In the last 10 years northwest Arkansas has seen a 30% increase in population as Millennials have been drawn to the area as well as the expanding job opportunities that continue to entice locals to stay. While Walmart, the world’s largest company, continues to be the area’s main economic driver, Tyson, JB Hunt, Simmons Foods and more than 1,450 subsidiaries of corporate offices provide extensive opportunities.
CapRocq Core2 is an Arkansas-based real estate partnership focused on acquiring real estate assets in key sectors including office, industrial and retail. A successor fund to CapRocq Core which used its capital to build a high-quality diversified real estate portfolio with properties throughout America’s heartland, CapRocq Core2 owns a large portfolio of core assets throughout growth markets in the south and midwest. The fund gains a competitive advantage by pursuing unrealized, value-added potential and exercising aggressive asset management strategies.
Kenai Capital Advisors is a Commercial Real Estate Broker and Capital Markets Advisor based in Littleton, Colorado. Kenai offers their clients strategic consulting, management and marketing services for office, retail, and industrial assets across the mountain, southwest and midwest region of the United States. Founded and led by Jules Sherwood, who brings over $1.5 billion in transactional volume and over 20 million square feet of management experience to the company, Kenai strives to make every property decision with the clear goal of maximizing client’s returns.
Serving Arkansas since 1972, Colliers International | Arkansas is the state’s largest property management and full-service commercial real estate services organization. With 100+ staff members who have earned more commercial real estate professional designations than any other provider in the state, Colliers Arkansas provides commercial real estate development management, disposition and acquisition services, tenant and landlord buyer and seller representation, corporate facilities services, investment real estate services and real estate management services.
