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State agency buys Verizon building in Little Rock for $26M

by David Smith | March 17, 2019 at 4:30 a.m. | Updated March 18, 2019 at 4:30 a.m.
The Arkansas Development Finance Authority says Verizon Building 4 is “an ideal space” because of its proximity to the Capitol.

The Arkansas Development Finance Authority paid $26 million last month for an office building and parking lot at 1 Verizon Drive.

Alltel Corp. was still listed as the owner of the property on county records, and therefore as the seller. But Verizon was the actual owner since it bought Alltel for about $28 billion in 2009.

The finance authority is the state's largest source of financing for low-cost housing. It also is responsible for the financing of most state buildings, said Brad Henry, vice president for development finance for the agency.

The state government will use the building for additional office and administrative space, said Derrick Rose, spokesman for the finance authority. Rose said he had no information on which agencies will move into the building.

The building purchased was Verizon Building 4, a six-story structure with more than 303,000 square feet. Of that space, 285,699 square feet is rentable, Rose said. Included with the building is a parking lot with 1,297 parking spaces, Rose said. The property includes almost 24 acres split into two tracts, he said.

"It's an ideal space because of its proximity to the state Capitol and it has ample parking," Rose said.

A team with Flake & Kelley Commercial represented Verizon in the sale, said Hank Kelley, chief executive officer with Flake & Kelley.

Flake & Kelley promoted the building to the Arkansas Development Finance Authority and other potential buyers, Kelley said.

The Verizon Building 4 transaction completes the sale of the other four Verizon buildings on the property, Kelley said. There are still some pieces of land for sale, Kelley said.

"This has been part of a long-standing assignment we've had with Verizon," Kelley said. "We're glad to get this milestone completed for them."

The team with Flake & Kelley Commercial included Kelley, Bill Pendergist, Nicholas Kelley and John Flake.

Flake & Kelley worked in conjunction with Cushman & Wakefield, an international commercial real estate firm based in Chicago, Hank Kelley said.

The two agencies have represented Verizon properties in central Arkansas for years, Hank Kelley said.

Verizon will consolidate its employees on the fourth floor, but has agreed to vacate the building within nine months, Rose said.

The property in the Riverdale addition appraised at $27.2 million last year.

KUM & GO SALE

A Kum & Go convenience store was sold to Bayrock Seven LLC for $5.8 million last month.

The Kum & Go is at 15617 Chenal Parkway in Little Rock. It was built last year.

Bayrock is a Charlotte, N.C., company that was incorporated by Thomas Hammons in January. Hammons is the manager of Bayrock.

Bayrock borrowed $3.8 million from First Internet Bank of Indiana in Fishers, Ind., to help finance the purchase. The mortgage matures in 2024 with an option to extend to 2029.

The seller was KG Store 139 LLC.

IMPERIAL ICE

Imperial Enterprise LLC paid $500,000 for the Imperial Ice warehouse at 10 Shackleford Ridge Road in Little Rock last month.

The warehouse, built in 2007, has about 8,000 square feet.

Imperial Property was the seller.

Imperial Enterprise and Cold Technologies borrowed up to $1.3 million in a Small Business Administration loan from Simmons Bank to finance the purchase.

Mark Enderlin, manager and member of both Imperial Enterprise and Cold Technologies, signed the mortgage.

Philip Grace, a member of A&G Holdings LLC, which is a member of Imperial Property, signed the deed.

C. Ryan O'Quinn incorporated Imperial Enterprise in July last year.

The property appraised at $343,000 in 2017.

CABOT PROPERTY

Cardinal Holding Group LLC paid $365,000 to acquire property in Cabot last month.

The property at 3814 E. Justice Road includes a 13,600-square-foot building that went up in 2004.

The seller was Justice Road Rentals LLC.

James Richardson and Marvin Dearien signed the deed as members of Justice Road Rentals.

The 2.4-acre property was appraised at $441,000 in 2017. Justice Road Rentals bought the property from the bank in 2015 for $325,000.

Cardinal Holding, which has offices at 2620 W. Cleland Road in Cabot, borrowed $436,800 from Searcy-based First Security Bank to help finance the transaction. The mortgage matures in 2022.

Patrick Fulmer and Jason Teer signed the mortgage as members of Cardinal Holding. In 2009, Fulmer and Teer also incorporated Cardinal Holding, which also operates under the name Garrett Vending.

Business on 03/17/2019

Print Headline: State agency buys Verizon building in Little Rock for $26M

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