BSR Real Estate Investment Trust, a publicly traded company in Little Rock, sold two of its Little Rock apartment complexes this month for about $21.6 million.
BSR, which stands for Bailey Summit Residential, sold Briarwood Apartments at 801 S. Rodney Parham Road for $13.6 million. BSR also sold Spring Valley Apartments at 8203 Interstate 30 for $8 million.
Briarwood, which has 280 units and covers almost 11 acres, was built in 1972. It sold for about $48,500 per unit.
Spring Valley, built in 1975, has 245 units and covers almost 10 acres. Spring Valley sold for about $32,650 per unit.
The Multifamily Group, owned by Richard Cheek and Ted Bailey III, represented the seller.
Both complexes had institutional style management by BSR and its predecessor, Bailey said.
"They have had fairly extensive renovations in both properties," Bailey said.
Briarwood and Spring Valley were two of about 20 older apartment complexes owned by Bailey Properties when BSR went public last year. Bailey Properties was developed by Ted and Virginia Bailey, the parents of Ted Bailey III and John Bailey, chief executive officer of BSR.
Once companies go public and become real estate investment trusts, they typically want to have properties as new as possible, Cheek said.
The two-story Briarwood complex appraised at $10.4 million this year and Spring Valley appraised at $4.6 million.
Briarwood last sold for $7 million in 1998. Spring Valley sold for $4.1 million the same year.
The buyers are a complicated mix of investors.
Buying Briarwood was a limited liability company known as Briarwood's Best Living LLC, J&R Park Place of Little Rock LLC and others.
Among Briarwood's Best Living's managers were four Kansas companies -- Vesta Capital LLC, Transparent Collaboration LLC, Carozza-Loeffler LLC and Pupik LLC. Josef Carozza Loeffler is the manager and sole member of the limited liability companies and signed the mortgage papers.
Briarwood's buyers borrowed $10.7 million, maturing in 2031. Spring Valley's buyers borrowed $7.5 million.
Buying Spring Valley was Spring Valley's Best Living LLC, J&R Park Place of Little Rock LLC and JDGN Investors Little Rock LLC.
DOWNTOWN PROPERTY
Louisiana And Third Properties LLC invested $1.6 million last month to buy two office buildings in downtown Little Rock.
One was a 5,200-square-foot office building at 200 Louisiana St.
The 81-year-old, two-story building is home to the Hyden Miron & Foster law firm.
The building appraised at $463,000 this year.
Also included in the sale was the Tripp Building at 209 W. Second St. The two-story building covers 8,400 square feet and was built in 1931.
Philip Miron incorporated Louisiana And Third Properties LLC in 2010 and also was the registered agent.
The Tripp Building appraised at $749,000 this year.
The seller was Cherokee Investments LLC.
CANCER SOCIETY BUILDING
Cherokee Investments LLC bought the American Cancer Society building for $1.6 million last month.
The 13,000-square-foot, two-story structure at 901 N. University Ave. in Little Rock was built in 2002. The building appraised at $1.4 million this year.
Cherokee Investments borrowed $600,000 from Bank OZK to help finance the deal. The mortgage expires in 2026.
Philip Miron, Max's Management LLC and Lyle Foster are managers of Cherokee Investments LLC. Foster was also registered agent for Cherokee Investments, which was incorporated in 1996.
The seller was 901 University LLC. Blue Lake Holdings LLC is a member of 901 University and W. Brock Martin III is manager. Robert Benjamin Lester is a member of Blue Lake Holdings.
SUNNY MART
The Sunny Mart convenience store in North Little Rock was sold last month for $1.4 million to 700 East Broadway LLC.
The store is at 700 E. Broadway.
The buyer borrowed $2.3 million from Bank OZK. The mortgage matures in 2024.
Edward Bailey signed the mortgage and is manager and registered agent of 700 East Broadway. Jared Coleman incorporated 700 East Broadway in November.
Bailey is also a partner in Blue Whale Development, along with James Harkins and John Flake, who is also founder and chairman of Flake and Kelley Commercial.
The seller was So Yeon Kim and Kwang Heo, wife and husband.
Kim of North Little Rock bought the building and property for $1.2 million on March 15 and the same day sold it for $1.4 million to 700 East Broadway, according to Pulaski County records.
The building and property were appraised at $905,000 this year.
JOUBERT'S BUILDING
GR Properties AR Little Rock LLC recently purchased the building at 7303 Kanis Road that housed Joubert's Tavern and office spaces for $900,000.
The seller was 7303 Kanis LLC. Jackson T. Stephens III, Henry Willmuth III and Thomas Ferstl are managers of 7303 Kanis and signed the deed.
Matthew Darin incorporated GR Properties last month.
The building was appraised for $341,000 in 2017.
It was last sold in 2017 for $342,000.
WAREHOUSE DEAL
Comfort Systems USA (Arkansas) Inc. bought Custom Systems USA last month in a transaction comprised primarily of storage warehouses at 3900 Terra Glen Lane in North Little Rock.
The transaction was for $300,000.
The five buildings have more than 21,000 square feet of space and cover more than 6.5 acres.
Trent McKenna incorporated Comfort Systems in 2016 and also was secretary and vice president. Clyde Jester was president of Comfort Systems.
TerraForma LLC of Maumelle was the seller. David Bruning and Doug Meyer, members of TerraForma, signed the deed.
The property and buildings were appraised at $787,000 this year.
SundayMonday Business on 04/21/2019