story by Kim Souza
ksouza@thecitywire.com
Builders across Northwest Arkansas requested new construction permits for housing and commercial properties totaling $47.524 million in November among the region’s four largest cities. The permit values rose 16% from $40.96 million recorded in the same month of 2013.
The commercial sector rose behind a number of large projects across the region. The combined commercial permits issued by the cities in this report totaled $28.781 million in November, up compared to $17.594 million the same month of 2013.
The largest project was a $14 million multifamily complex under construction in the heart of the Pinnacle Hills area of western Rogers. The 200-unit apartment complex was approved by the city a year ago for developers —The Sterling Group, who reportedly is purchasing the 8-acre tract south of New Hope and Bellview roads from Hunt Ventures for an undisclosed amount. The Indiana-based Sterling Group did not return a request for comment.
Clinton Bennett, managing broker for CBRE in Fayetteville, said the Pinnacle area is one of the hottest addresses from businesses seeking sites in growing region. He said it was a surprise to learn that this valuable retail real estate is slated for multifamily housing.
Bennett said it is likely that the units will be upscale apartments that cater to a professional who wants to live within walking distance to almost anything they need. Bennett said with all the new office space going up across the Interstate, this housing will be quite convenient to work and recreation as the Razorback Greenway runs through the area.
Also on tap in the Pinnacle Area is Haverty Furniture under construction at 2203 Promenade Blvd., Suite 2440. This permit issued by the city of Rogers was valued at $1.35 million. Across town, Tyson Food’s addition to its chicken plant at 400 W. Olrich, was valued at $2.3 million. Honda Motor Sports is under construction at 1050 W. Hudson Road in northeast Rogers. That permit totaled $1.351 million. The Honda dealership location is near the new Indian Motorcycle and the Harley Davidson businesses.
The commercial permits in Rogers totaled $18.9 million in November compared to permits less than $25,000 in the year-ago period.
Bennett said with the low unemployment rate and growing job numbers in the region he expects to see more companies seeking Northwest Arkansas in the coming year.
Fayetteville also saw a hike in commercial permits in November, with a total of $9.026 million, up more than 90% from a year ago. The biggest projects include the $5.7 million Bright Technology Warehouse on South Armstrong. In the retail space, the shopping center that will house Whole Foods on North College Avenue got three new permits totaling more than $2 million for that ongoing construction. A new Starbucks is also coming up at 3500 W. Black Forest Dr., with a permit value of $500,000.
Springdale issued one new commercial permit totaling $832,000 in November. The business is Mountain Pass located at 3637 S. Old Missouri Rd. There were no new commercial permits in the month of November.
The cities of Springdale, Bentonville, Rogers and Fayetteville issued permits for 73 new homes in November. The value of those combined permits totaled $18.743 million, down from $23.366 million in November 2013.
The residential building pace was split in November with Springdale and Fayetteville on the upswing, while Bentonville and Rogers each had fewer permits compared to a year ago.
November Residential Values
• Bentonville: $4.670 million, down from $7.974 million
• Fayetteville: $ 7.946 million, up from $7.401 million
• Rogers: $3.679 million, down from $6.543 million
• Springdale: $2.338 million, up from $1.448 million
The residential building pace has continued to slow throughout the back half of 2014 compared to the prior year. The new home inventory remains in check with demand according to local economist Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas. Deck recently told The City Wire that the building pace in 2014 has been sustainable as the market reached equalization in the late spring.
Tami Fagan, agent with Crye-Leike Real Estate in Fayetteville, recently said the lack of new home inventory has helped existing homes sell quicker. She said there is enough new home construction in multiple price points for buyers looking for new. But there’s not an abundance of homes sitting vacant, all of which is healthier for prices overall,
New Permit Values (November)
Bentonville
2014: $4.67 million
2013: $23.85 million
Fayetteville
2014: $16.97 million
2013: $8 million
Rogers
2014: $22.6 million
2013: $6.54 million
Springdale
2014: $3.28 million
2013: $2.55 million