Bellafont Development

[Mith242]

Here's another article about problems at the Bellafont development from Andrew. Is anyone else wondering if the Mason's bldg might be the only thing completed here for quite a while?

http://www.arkansasbusiness.com/article.as...13433&cID=j

[cocothief]

Here's another article about problems at the Bellafont development from Andrew. Is anyone else wondering if the Mason's bldg might be the only thing completed here for quite a while?

http://www.arkansasbusiness.com/article.as...13433&cID=j

[strmchsr77]

Wow, I'd be surprised if Barber finishes anything he's got going on.

I hate to say that I also saw this coming.

[zman9810]

I just think that this is so sad. I was really looking forward to this development and now it may never get completed. It would have added a nice skyline to the north side of town. Hopefully somehow it will get finished in the future.

[Mith242]

I don't get it- the NWA Business Journal just reported in the Real Deals column that Barber bought 19 acres in rural Bethel Heights for $1.2 million. In the same issue is the article about Precept not getting paid and all the other litigation pending against Barber. I don't pretend to understand development financing but but this makes no sense at all. Anybody got a logical explanantion on what is going on?

[acx_guy]

That is odd. With as many lawsuits you'd think some of this property is going to end up being sold off to pay everyone Barber owes money to.

Yeah I think someone else will have to take over if it's ever to be completed. Let's just hope it's not Nock. He's already got enough on his plate and I'm ready to see some of his current developments completed before he takes on even more.

[cocothief]

I don't get it- the NWA Business Journal just reported in the Real Deals column that Barber bought 19 acres in rural Bethel Heights for $1.2 million. In the same issue is the article about Precept not getting paid and all the other litigation pending against Barber. I don't pretend to understand development financing but but this makes no sense at all. Anybody got a logical explanantion on what is going on?

[zman9810]

A seperate LLC, and maybe the financing has been in the pipeline for months?

You never know.

I'd bet its interest-only at this point, and with all the crap going down the tubes, I'd think banks are willing to roll the dice on someone with BB's financial backing, even if his companies are currently cash-broke.

Plus the note is only secured by land, so its not like its really that big of a risk for the bank.

[Mith242]

True we haven't heard Barber's side. But at the same time has Barber had any big development completed that didn't have problems? Barber sold the former Spring Street Lofts. The Legacy was completed but he's being sued over it. Just seems to me that Barber made a big 'leap of faith' that was either going to make him one of the biggest successful developers in NWA or was going to blow up in his face. Looks like it was the latter.

[strmchsr77]

Also, he seemed to get into the big developments just a couple of years too late here in NWA. He would have probably finished and been successful had the market not gone down so much over the past year or so. I hope it picks up soon, but I don't expect anything until at least spring but it could be 2009 before we begin to pull out of this slump.

[mzweig]

I don't get it- the NWA Business Journal just reported in the Real Deals column that Barber bought 19 acres in rural Bethel Heights for $1.2 million. In the same issue is the article about Precept not getting paid and all the other litigation pending against Barber. I don't pretend to understand development financing but but this makes no sense at all. Anybody got a logical explanantion on what is going on?

[zman9810]

Developers do this crap all of the time. It's the way Donald Trump made his millions. His "project" would go broke, he would stick it to the creditors, and then buy the thing back for pennies on the dollar. That's why I don't like Trump.

That said, Barber's project could be in trouble, but he personally may not be. Developers are smart about this kind of thing.

M

[cocothief]

If I was the Fayetteville Mellow Mushroom franchisee, I'd look into leasing one of the defunct restaurants south of the Mall.

There really isn't any direct competition over there and it would be unique enough to draw in some customers.

With three vacant, Ocharleys, Fuddruckers, and Smokey Bones, I bet you could get a good deal on rents.

I can't see how the wasteland that was to be Bellafont would be a better choice for a location at this point.

Even if Bellafont was completed, I still think those other places are better true restaurant locations and offer better exposure than being tucked away on Vantage.

[Stormcrow]

I do remember Trump going bankrupt and it didn't seem to slow him down one bit. If being in trouble financially affected these people more personally it might deter some of their bad decisions. I know if the average person makes a bad decsion by taking on a really low variable mortage interest rate that goes way up after a few years and then can't handle the higher payments they lose their home. At least that's the way it should work- sounds like the government is looking into bailing out (with taxpayer money) those who made that type of bad decision.

[zman9810]

I could be wrong, but I'm pretty sure the "bailout" will not use any taxpayer money. At least not yet. It will merely freeze ARMS for a number of years so the people who dug themselves holes can attempt to refi with fixed loans. The people holding the debt securities will take the financial hit and not us. The thing that ticks me off is that the refi's will all be done by same people who got us into this mess: the loan writers who sweet talked the people into taking the ARMs in the first place. So they sell loans they knew people couldn't handle and then get rewarded for it by getting write them new ones, wonderful.

Anyway...back on topic..

[andrewjensen]

If I was the Fayetteville Mellow Mushroom franchisee, I'd look into leasing one of the defunct restaurants south of the Mall.

There really isn't any direct competition over there and it would be unique enough to draw in some customers.

With three vacant, Ocharleys, Fuddruckers, and Smokey Bones, I bet you could get a good deal on rents.

I can't see how the wasteland that was to be Bellafont would be a better choice for a location at this point.

Even if Bellafont was completed, I still think those other places are better true restaurant locations and offer better exposure than being tucked away on Vantage.

[strmchsr77]

part of the problem with MM is that it takes a 3-month build-out once the franchisor takes control of the building. MM has a very unique interior. from what I've been told, the location at BF has less than a month's worth of work before an interior build-out can begin, which is why he's trying to stick it out with Barber. With P&G and the other office space around that part of Joyce, it can be a good location because people from that side of town won't have to battle that awful intersection while trying to get a lunch.

also, Barber has filed a motion to dismiss the Mason's lawsuit. Here is at least part of his side of the story.

http://www.arkansasbusiness.com/article.as...35.97168.113580

[andrewjensen]

So, the Mellow Mushroom is still coming to Bellafont? I am kind of surprised but happy about it.

[Stormcrow]

He is giving Barber til the first of the year to get another contractor working on the project, then he has to look elsewhere.

He's already paid his franchise fee, so MM is coming to this area one way or another.

[acx_guy]

Big news on this project should be coming out soon. Getting rid of the baggage that was holding this project back.

[Mith242]

Big news on this project should be coming out soon. Getting rid of the baggage that was holding this project back.

[cocothief]

I still think that the best use of this property as it stands would be for the development of the retail village, with maybe a couple of the buildings redesigned as mixed-use, creating a less impactful vertical development, but a more reasonable mixed-use project.

I could see high-end rentals above the storefronts here, just not 16 stories of them.

Combine that with some restructing of the project to give it more the feel of The Shoppes at Pinnacle Hills and I think you have a winner.

It probably wouldn't meet pro-forma, depending on the land costs here, but it would save a lot more face than a half-built skate-park and red clay mess, and over time it would be a good quality project.

Perhaps the other towers could be kept on the board for the future once this area is more established as a destination.

[mzweig]

I still think that the best use of this property as it stands would be for the development of the retail village, with maybe a couple of the buildings redesigned as mixed-use, creating a less impactful vertical development, but a more reasonable mixed-use project.

I could see high-end rentals above the storefronts here, just not 16 stories of them.

Combine that with some restructing of the project to give it more the feel of The Shoppes at Pinnacle Hills and I think you have a winner.

It probably wouldn't meet pro-forma, depending on the land costs here, but it would save a lot more face than a half-built skate-park and red clay mess, and over time it would be a good quality project.

Perhaps the other towers could be kept on the board for the future once this area is more established as a destination.

[acx_guy]

I agree. I have also said before that suburban condos are always the first property to go south value-wise in a down market. If we cannot sell condos on Dickson/The Square, it will be hard to move any suburban condos, especially ones that are not less expensive than an equivalent house (and these would not be). I think you are on to something with the outdoor mall concept. That's the trend in malls these days and this site could work for that--though it is not convenient to 540.

M

[cocothief]

I noticed that the roof framing is up on one of the retail buildings this week. I believe they are installing windows as well. This is the retail building that has the big tree next to it, on Vantage.

This is the first sign of work on this project in at least 4 months.