Hendricks & Partners senior investment advisor John D.Clayton says leasing for the asset at 75 Riverfront Drive beganduring Q1 2008. The project itself was completed last summer and isalready 80% occupied. Little Rock-based Clayton, who isrepresenting seller Bomasada Group of Houston, says even in astrong market like Little Rock, he hasn't before seen such activeleasing velocity.

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"The developer could not have timed the development of thisproperty any better in terms of the location," says Clayton, who ismarketing the property with colleagues Aaron Hargrove, associatepartner of Hendricks & Partners' Tulsa, OK office and seniorinvestment advisor Tim McKay, who operates out of the Oklahoma Cityoffice. "He took a location that originally had an old, emptywarehouse on the Arkansas River, demolished it, and built thisstructure," Clayton adds.

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While Enclave at the Riverfront was under development, the370,000-square-foot Alltel Arena was just finishing constructiondown the street. Adding to the perfect storm was the completion ofJunction Pedestrian Bridge, which crosses the river and linksEnclave at Riverfront to Little Rock's booming River MarketDistrict.

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Clayton acknowledges there are factors in addition to a class Aapartment product that seem to be calling out to investors. Areaemployment growth is on an uptick, which isn't the case in othermarkets. Additionally, "we're not over-saturated with apartmentproperties in this market," Clayton explains. "We have just theright amount here."

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Statistics from Carrollton, TX-based M|PF YieldStar supportClayton's words. The area has approximately 3,500 units, and fromwhat Clayton says, Little Rock is not an area likely to be floodedwith thousands more. "Part of it is due to good planning and partis due to topography," he says. "Little Rock is named so for areason. The topography is challenging to develop."

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Clayton tells GlobeSt.com that a best and final will be part ofthe bid process, but a date hasn't yet been decided. "We've alreadyreceived an all-cash offer on the property," he notes. "It's whatI'd consider a fair offer." Clayton is also receiving calls frompotential out-of-state buyers that wouldn't have considered LittleRock a likely investment target in the past.Situated on four acres,Enclave at the Riverfront has one- and two-bedroom units, measuringfrom 695 square feet to 1,484 square feet. Pro forma rents arebetween $800 and 2,000 per month.

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