The storied Lafayette Building in downtown Little Rock is under contract to an unnamed buyer who has plans to turn its commercial space into a hotel.
Newmark Moses Tucker, the real estate management and development firm representing the prospective buyer told commercial tenants in the 94-year-old former hotel at Sixth and Louisiana streets that the buyer had retained the firm to "closely work with each tenant in the transition."
"The buyer's current plans include converting all of the commercial space in the building to a hotel, while leaving the upper floors as residences," according to a Newmark Moses Tucker email sent Monday to commercial tenants. "This, of course, will significantly impact each of you."
A representative for Chad Gallagher, who was part of the team that acquired the building three years ago, referred questions to Chris Moses, president and chief executive officer of Newmark Moses Tucker.
"The property hasn't sold," Moses responded in an email Thursday. "It is under contract, though. Chad Gallagher is the owner of the property and can answer any of your questions."
Gallagher, who runs a consulting business from the Lafayette called Legacy Consulting, was at the state Capitol on Thursday and unavailable for comment, a representative of the firm said.
The Newmark Moses Tucker email to tenants suggested Gallagher was in the midst of selling the property.
"This email is to inform you that Lafayette Building, LLC has entered into a contract to sell all of its holdings in the Lafayette Building," the email said. "This includes the space that you lease from us."
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Gallagher is the managing partner of Lafayette Building LLC, which acquired the building for $3 million in 2014 from Tower Investments of California. Tower owned the building for nine years and added 30 condominiums to the upper floors.
At the time of the transaction, Lafayette Building LLC also included Gallagher's wife, Jessica, and Scott Ferguson and Deborah Ferguson of West Memphis.
Chad Gallagher is a former mayor De Queen and a top aide to former Gov. Mike Huckabee. His consulting firm has leased space in the building since 2009.
If the unnamed buyer closes on the transaction and pursues a hotel development, the project would be the second hotel development in the one block of Louisiana between Capitol Avenue and Sixth Street.
An AC Hotel by Marriott is going into the Hall-Davidson buildings at Capitol Avenue and Louisiana Street. The $14.7 million project is converting the historic property into a 112-room hotel. It is expected to open this summer.
The Lafayette opened in 1925 and operated off and on as a hotel until 1973. It was placed on the National Register Historic Register of Historic Places in 1982.
Tenants reached on Thursday declined to speak publicly about the possible sale.
Business on 03/29/2019