Market Could Boost 260-Unit Enclave's Appeal

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

"The developer could not have timed the development of this property any better in terms of the location," says Clayton, who is marketing the property with colleagues Aaron Hargrove, associate partner of Hendricks & Partners' Tulsa, OK office and senior investment advisor Tim McKay, who operates out of the Oklahoma City office. "He took a location that originally had an old, empty warehouse on the Arkansas River, demolished it, and built this structure," Clayton adds.

While Enclave at the Riverfront was under development, the 370,000-square-foot Alltel Arena was just finishing construction down the street. Adding to the perfect storm was the completion of Junction Pedestrian Bridge, which crosses the river and links Enclave at Riverfront to Little Rock's booming River Market District.

Clayton acknowledges there are factors in addition to a class A apartment product that seem to be calling out to investors. Area employment growth is on an uptick, which isn't the case in other markets. Additionally, "we're not over-saturated with apartment properties in this market," Clayton explains. "We have just the right amount here."

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

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