A Fayetteville inn and event center has been sold to a real estate firm as part of bankruptcy proceedings involving its owners, according to court documents.
Specialized Acquisitions LLC of Fayetteville purchased Pratt Place Inn and Barn along with surrounding land, which is located just west of the University of Arkansas. The purchase was approved during a hearing last week in U.S. Bankruptcy Court for the Western District of Arkansas.
The total sale price of about $3.1 million was for more than 140 acres owned by Julian and Jan Archer and Archer LLC. The Archers filed for Chapter 11 bankruptcy protection for Pratt Place Inn and Sassafras Hill Enterprises Inc. last year and Archer LLC in 2014, but the cases have since been converted to Chapter 7 and handed over to a trustee. The couple also filed for Chapter 11 personal bankruptcy protection in 2015.
Fayetteville attorney Stanley Bond said Pratt Place Inn remains open for business.
"This is the first step in the general restructuring of the finances of that entire operation," said Bond, who is representing the Archers in their personal bankruptcy case. "So the Archers remain in operation and management of all of the operations up there. Restructuring is a process."
Specialized Acquisitions purchased 74 acres owned by Archer LLC for $2 million, according to a Jan. 22 commercial real estate contract. The nine parcels listed in the sale include land that contains Pratt Place Barn and Inn, a 31-acre parcel that was recently appraised at $1.9 million, according to Washington County records.
In addition, the firm also purchased four more parcels -- 72 acres of wooded land -- for $1.1 million from the Archers.
Sarah King, who overseas marketing and community outreach for Specialized Real Estate Group, said the firm is "looking at a lot of different options" for the land.
"The opportunity appeared really quickly," King said. "So we don't have any plans to share yet."
Specialized Real Estate Group was founded in March 2011 and has developed apartment projects like Eco Modern Flats, Sterling Frisco and Cardinal at West Center, all in Fayetteville. Construction also is underway on Uptown Apartments, a 308-unit complex that will be located near the Northwest Arkansas Mall in Fayetteville.
Pratt Place, which opened in 2008, is an independent, locally owned and operated seven-room boutique hotel located at the top of Markham Hill in Fayetteville. The property, which also includes a barn used as an event space, was purchased by Cassius and Maggie Pratt in 1900.
The AAA recently rated Pratt Place Inn as a four-diamond establishment, one of four in Arkansas. It's one of several accolades the inn has earned since opening its doors. Pratt Place also was one of 82 hotels recognized as a Forbes Travel Guide Recommended Hotel in 2014.
Bond said there have been no disruptions to the inn's schedule despite the sale, saying "we're still operating and continue to" as the Archers' bankruptcy proceeding continues.
As for the future of the inn and barn property, Bond said "that's up to what Specialized chooses to do with them."
King said about the firm's plans that: "Though we don't know the what, I can tell you the how. We approach everything with a great awareness of the context of the site. We want to make sure everything we do is a great fit for the neighborhood and the broader community. So we're very sensitive to context, historical context, natural context and the neighborhood."
Business on 02/09/2016