The real estate market in Arkansas is ever-changing, and a trusted Arkansas commercial appraiser can help steer you toward success.
As an Arkansas commercial appraisal and real estate consulting company, Ferstl Valuation Services obviously keeps a close eye on the local and regional real estate market, and recently we have seen a significant shake up that is following a positive national trend. Even the residential market is growing considerably, with Benton, Faulkner and Saline counties boasting a 12.5 percent increase in home sales. As property values increase all around, commercial investors are once again investing in properties that generate jobs and benefit not only their own portfolios, but private citizens and communities as well. However, not everything is turning up roses, and some transactions will have a foreseeable impact on the Arkansas economy.
Magnolia Flats LLC recently purchased the Voss Apartment Building at Rock Street and Capitol Avenue in Little Rock. The company will lead a $1 million rehabilitation project that will transform the aging structure into an apartment complex of 12 one-bedroom units called “The Magnolia.” This expands upon Magnolia LLC’s new 84-unit upscale complex across the street, and should provide a significant improvement in the rental market of the area.
Beyond benefiting the Voss Apartments seller, John Billingsley, many local businesses will profit from Magnolia’s projects in the area. Arvest Bank is financing the former Voss building’s renovation to be completed by late 2014.
Northeast Arkansas is seeing a dramatic expansion in its market on news that there will soon be a significant poultry operation in the area. Peco Foods has announced that it plans to build a $165 million hatchery, feed mill and poultry processing plant. This is expected to create roughly 1,000 jobs in the surrounding Clay and Randolph counties. Principally located in Alabama and Mississippi, Peco has previously built a processing plant in Batesville and a feed mill in Newark.
Not all recent industry news unequivocally equals new jobs and commercial success. In March, Canadian company West Fraser Timber Co. Ltd. acquired Travis Lumber Co. and Bibler Brothers Lumber. These lumber companies operate out of Mansfield and Russellville, respectively. The two mills employ more than 300 people and are able to produce roughly 250 million board feet per year between them, and West Fraser has begun expanding the operation with the intent of growing that number. However, West Fraser has not confirmed whether it will add any new jobs or downsize any of the current workforce.
When Allens Inc., a Siloam Springs cannery, filed Chapter 11 in October of 2013, the company’s debts were reported at $294.5 million. As of this January, Allens lost an additional $14.1 million in revenue due to a continued drop in sales. The company was purchased at auction in New York by Sager Creek Acquisition Corp. in a $159.9 million deal, and while the once family-owned vegetable processing company will remain an independent company headquartered in Siloam Springs, Cornell University alum, Chris Kiser who has Campbell Soup Co. experience, is now at the helm as CEO. “I am honored to be joining the Allens team, and look forward to working hand in hand with our valued associates, customers and suppliers to create a bright future for this great American food company,” Kiser said in a press release earlier this month.
Arkansas’s real estate market, like many other markets across the country, is finally on an upswing. Several major investors are increasing their portfolio in key areas of both population and commercial growth which is having a positive impact on the state’s economy. Unfortunately, some investments are proving to have long-term effects on Arkansas’s job market. To learn more about how an expert Arkansas commercial appraiser can evaluate your potential property investments and enrich your portfolio, contact Ferstl Valuation Services today.