Eleven people have applied for retail liquor licenses in Little River County, according to the Arkansas Alcoholic Beverage Control Division.

Voters approved alcohol sales in the November General Election, the first time they had considered the issue in about 70 years. The vote made Little River County the 41st of Arkansas' 75 counties to go "wet."

The county, with a population of about 13,000, is eligible for two liquor stores. The lucky winners will be chosen by a drawing the last week of July.

Gandolfo's New York Deli on Monday announced that a grand opening for its newest location at 17801 Chenal Parkway, Suite A, in Little Rock's The Promenade at Chenal outdoor mall is set for 7 a.m. Thursday. 

This is the deli's first location in the Little Rock area. It will be open from 7 a.m.-9 p.m. Monday-Thursday, 7 a.m.-10 p.m. Friday and Saturday and 7 a.m.-8 p.m. Sunday. The deli serves breakfast, lunch and dinner and also provides catering. 

The first 100 people who come to the new location on Thursday will receive a commemorative travel mug and free daily refills of coffee for one year.

On Friday, all breakfast items will be half price from 7-10 a.m.

On June 20, Little Rock police officers eat for free. Little Rock firefighters eat free on June 21.

Kids 10 and under eat free June 22, with the purchase of an adult meal. 

The deli has also partnered with local schools, churches and organizations to drop off treats and catering samples as part of the grand opening.

LITTLE ROCK — Tyson Foods is recalling nearly 2.5 million pounds (1.1 million kilograms) of ready-to-eat breaded chicken due to an unlabeled allergen.

The company, based in Springdale, says the recall was made after it was notified June 6 by a supplier that the bread crumbs Tyson received could contain milk.

According to Tyson, the recall is limited to food-service customers and the products are not available for purchase in retail stores. Company spokeswoman Caroline Ahn says the meat was shipped to 30 states.

The U.S. Department of Agriculture says Tyson's records show schools have purchased products through the company's commercial channels.

There have been no confirmed reports of illness due to the products.

(All contents © copyright 2017 Associated Press. All rights reserved.)

WASHINGTON — China is a step closer to allowing imports of U.S. beef for the first time in almost 14 years.

The United States and China have agreed on final details of a deal to allow the imports, the Agriculture Department said Monday. The agreement is one part of a bilateral agreement reached following President Donald Trump's meeting with Chinese President Xi Jinping in April.

China imposed a ban on American beef in 2003 after a case of mad-cow disease, a ban that remained in place despite extensive efforts by the Bush and Obama administrations to get it removed. Before the ban, the United States was China's largest supplier of imported beef.

In exchange for China opening its borders to U.S. beef, the U.S. would allow the sale of cooked Chinese poultry.

USDA said that China is requiring that any beef imported from the U.S. must have been born, raised and slaughtered in the United States or imported from Canada or Mexico and raised and slaughtered here. It could also be imported from Canada or Mexico and slaughtered in the U.S.

The beef also has to be derived from cattle less than 30 months old and traceable to the U.S. birth farm or first place of residence or port of entry. All of the precautions lessen the risk of bovine spongiform encephalopathy, or mad cow disease.

Agriculture Secretary Sonny Perdue, Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer all praised the deal in a statement.

"I have no doubt that as soon as the Chinese people get a taste of American beef, they'll want more of it," Perdue said.

(All contents © copyright 2017 Associated Press. All rights reserved.)

WASHINGTON — Americans cut spending at gasoline stations, department stores and electronics shops in May as retail sales registered their biggest drop in 16 months, a cautionary sign for the economy.

The Commerce Department said Wednesday that retail sales dropped 0.3 percent, the first decline since February and the sharpest since a 1 percent decrease in January 2016. Economists had expected sales to increase slightly in May after rising 0.4 percent in April.

Over the past year, retail sales have risen a solid 3.8 percent.

Last month, sales fell 2.8 percent at electronics stores, the biggest such drop since March 2016. They fell 2.4 percent at gasoline stations and 1 percent at department stores, which have struggled with competition from online retailers.

Economists have said they think consumer spending, which accounts for about 70 percent of U.S. economic activity, will pick up in the spring and summer after a slow start to 2017. A slump in consumer spending early this year is a key reason why the economy expanded at only a lackluster 1.2 percent annual pace from January through March.

The Trump administration has said it can accelerate economic growth to 3 percent a year by cutting taxes, loosening regulations and pouring money into roads, bridges and other infrastructure projects.

But President Donald Trump's agenda has been held up by political turmoil and a lack of details from the administration. And economists are skeptical that Trump could overcome longer-term problems that weigh on economic growth, including an aging workforce and a slowdown in worker productivity.

(All contents © copyright 2017 Associated Press. All rights reserved.)

Sales of luxury homes in Pulaski County jumped in 2016 to a number not seen since Arkansas Business began tracking them in 2004.

Last year, 29 homes sold for $1 million or more, up from 20 in 2015.

Arkansas Business has been keeping statistics on high-end sales since 2004, when 29 million-dollar homes were sold. Sales hit a low of 13 in 2012.

This year, strong sales should continue, Jon Underhill predicted in an email to Arkansas Business last week. Underhill sells upscale home through his agency, Jon Underhill Real Estate of Little Rock. “The economy and the stock market are both doing well, and that bodes well for real estate,” Underhill said.

Since January 2017, 11 seven-figure homes have sold in the county and five more are under contract, he said.

Underhill also said more high-quality luxury homes were for sale in 2016, which contributed to increased sales. “Inventory had been low on quality homes in good locations,” Underhill said. “Many of the homes that sold had never been offered for sale.”

Homebuyers’ ideas of a dream home change annually. Few are asking for dedicated theater and wine rooms these days.

The current trends are open floor plans with comfortable living areas and designer kitchens, Underhill said. Buyers want master bedrooms and one guest room on the main level, outdoor areas, a pool and four-car-plus garage. Smart homes are a must, and buyers aren’t “willing to pay for last year’s technology,” he said.

As of last week, 44 homes in the county were listed for sale with asking prices of $1 million or more.

Underhill said that he has a list of at least nine other homes that the owners would be interested in selling but that aren’t on the active market.

For those who wonder who bought these exclusive homes in Pulaski County, Arkansas Business, using interviews, public real estate records and other documents, has provided a brief description of the homes and the buyers.

$2.67 Million

Buyer: Mace Properties LLC, led by Harry Erwin III
Seller: Wendy and Stephen LaFrance Jr.
Neighborhood: Edgehill, Little Rock    
Date: Sept. 1    
Year Built: 1929
SF: 6,844

Harry “Chuck” Erwin III bought this home that, real estate website Zillow said, features open entertaining spaces and a chef’s kitchen. Zillow touts the Edgehill manor’s “fabulous open entertaining spaces,” and the backyard highlights include a pool and gardens. Erwin founded the certified public accountants’ firm Erwin & Co. in Little Rock in 1984. He graduated from the University of Texas and started his career in 1979, according to his company’s website. He supports the Arkansas Arts Center and Arkansas Symphony Orchestra. Erwin has served on the board of trustees of Arkansas Children’s Hospital since 1990.

$2.5 Million

Buyer: Scenic LLC, led by John Stephens
Seller: Demp and Paula Dempsey
Neighborhood: Scenic Heights, Little Rock
Date: April 1
Year Built: 1981
SF: 6,823

This home features a detached three-car garage and “chiseled Terrazzo floors throughout,” according to Zillow. The house also has three fireplaces and doors that open to decks with canyon creek views, Zillow said. Scenic LLC, led by John Stephens, bought the $2.5 million house on April 1, 2016. John Stephens’ father is Warren Stephens, the president and CEO of Stephens Inc. of Little Rock, one of the country’s top investment banks. Last year, Forbes listed Warren Stephens as one of the richest people in America with a net worth of $2.4 billion.

$2.2 Million

Buyer: NPS Holdings LLC, led by Jeffrey and Cara Nolan
Seller: Estate of Kula Kumpuris
Neighborhood: Country Club Heights, Little Rock
Date: Aug. 17

NPS Holdings LLC, led by Jeffrey and Cara Nolan, bought a $2.2 million house to tear it down. On Dec. 22, residential homebuilder Fred Lord Builder Inc. of Little Rock took out a building permit for the new home project valued at $1.65 million. The work was financed by a two-year loan of $2.1 million from BancorpSouth Bank of Tupelo, Mississippi. Jeffrey Nolan is president and CEO of the land and timber management firm Loutre Land & Timber Co. of El Dorado. Since 2012, he has served on the board of directors of Murphy Oil Corp. of El Dorado. As a Murphy Oil director, his compensation for 2016 was $265,000.

$1.8 Million

Buyer: Donald and Lucinda Phelps
Seller: John and Amber Meadors
Neighborhood: Edgehill, Little Rock
Date: May 26
Year Built: 1937
SF: 4,667

Donald and Lucinda Phelps bought this home that, according to Zillow, features vaulted brick ceilings and floor-to-ceiling arched windows that overlook a pool and “immaculate grounds.” A guest cottage also is on the property. Don Phelps is the CEO of Phelps Fan LLC of Little Rock, which was founded in 1915 and is one of Arkansas’ oldest companies. He is the fifth generation of the Phelps family to run the company, which manufactures industrial fans. “From routine industrial needs to the demands of nuclear age requirements, Phelps Fan’s commitment to innovation and technology meet the needs of today while positioning itself to meet those of the next century,” the company’s website said.

$1.79 Million

Buyer: Jill and Edward Penick III
Seller: Marilynn and Robert Porter Jr.
Neighborhood: Country Club of Little Rock
Date: Sept. 30
Year Built: 2011
SF: 5,076

Jill and Dr. Edward Penick III bought this estate that, Zillow said, includes a three-car 868-SF garage. Edward Penick III practices at Central Arkansas Ophthalmology in Little Rock. The Little Rock native received his bachelor’s degree in biology from Davidson College in North Carolina and his medical degree from the University of Arkansas for Medical Sciences, according to Central Arkansas Ophthalmology’s website. He completed his ophthalmology residency at the University of Missouri-Kansas City. He specializes in Lasik and cataract surgery and sees patients for medical and eye exams, the website said.

$1.7 Million

Buyer: WVM LLC, led by Rush Harding
Seller: Maxie and Patricia Bobbitt
Neighborhood: Hickory Pointe, Little Rock
Date: April 15
Year Built: 2007
SF: 6,327

Rush Harding bought this home, featuring three bedrooms, three full bathrooms and two half-baths, because of the privacy. It has a permanent green space that surrounds three sides of the home, Harding said in an email to Arkansas Business. “I have a large, spacious office and my wife has a quiet nook to work on her photography and other projects,” he said. Harding said his wife, Linda, likes to work in the yard. “She has created a magical setting with plants and landscaping,” he said. Rush Harding is CEO of Crews & Associates in Little Rock, an investment banking firm created in 1979. He also is the CEO of Crews’ subsidiary, First Security Finance.

$1.57 Million

Buyer: Rodney and Michelle Damon
Seller: CNC Family Trust, led by Christopher and Claire Pittman
Neighborhood: Sologne Circle, Little Rock
Date: May 12
Year Built: 2008
SF: 10,810

Rodney Damon said the house on Sologne Circle was too good a deal to pass up.
The home cost $2.8 million to build in 2008, said Damon, who splits his time between Florida and Little Rock. “I bought it as an investment,” he said. “Hopefully, I can retire at some point and make some money off of it.” The estate in the gated community has five bedrooms and eight bathrooms. The brick house is “well-built,” he said. “It has all the amenities of any luxury home that you would see,” he said. Damon is a senior vice president at BOKF, which does business as Bank of Oklahoma and Bank of Arkansas.

$1.4 Million

Buyer: Terri and David Snowden Jr.
Seller: Judith and David Snowden Sr.
Neighborhood: West Little Rock
Date: June 1
Year Built: 1999
SF: 5,494

The house that Terri and David Snowden Jr. bought for $1.4 million was part of a family residential deal. They swapped their 6,272-SF home near the Country Club of Little Rock for Judith and David Snowden Sr.’s estate on 20 acres in west Little Rock. David Snowden Jr. is vice chairman at Tarco Inc. of Little Rock, which manufactures roofing products and has plants in Arkansas, Texas and Pennsylvania. Both Snowden Sr. and Snowden Jr. are members of the Arkansas Outdoor Hall of Fame and have been involved with the Arkansas Nature Conservancy since it began in the 1970s, according to the website of the Arkansas Game & Fish Foundation, which sponsors the Hall of Fame.

$1.4 Million

Buyer: Celia-Anne Martindale
Seller: George and Deborah Makris
Neighborhood: Country Club Heights, Little Rock
Date: Jan. 15
Year Built: 1998
SF: 5,986

Celia-Anne “CeCe” Martindale bought this home just a block from the Country Club of Little Rock. The house features a “large family room open to gourmet kitchen with every amenity,” according to Zillow. It also has a private covered terrace that overlooks a landscaped oversized lot, the website said. Martindale’s husband, Howard, is a co-director of information technology at Fourjay LLC of North Little Rock, a franchise of Wendy’s International Inc. Founded in 1975, Fourjay now has 49 stores with more than 1,400 employees, according to the company’s website. In August, Franchise Times, a trade jounal, estimated Fourjay’s annual revenue at between $60 million and $70 million.

$1.35 Million

Buyer: Duane and Angela Birky
Seller: Lee Bodenhamer Trust
Neighborhood: Overlook, Little Rock
Date: Dec. 2
Year Built: 2009
SF: 6,385

Angela and Dr. Duane Birky bought this four-bedroom, six bathroom home that overlooks the Arkansas River and the Big Dam Bridge. It also has “expansive decks off the rear of the house,” multiple fireplaces and floor-to-ceiling windows, Zillow said. Dr. Birky specializes in neurology and works at the Baptist Health Specialty Clinic in North Little Rock. He received his license to practice medicine in Arkansas in 1999.

$1.35 Million

Buyer: Karen E. Flake Revocable Trust
Seller: Chuck Hamilton Construction Inc.
Neighborhood: Country Club Heights, Little Rock
Date: Oct. 11
Year Built: 2010
SF: 5,091

Karen Flake bought the 5,091-SF home because she wanted the extra family space for her six grandchildren. The four-bedroom home is “probably more than we would need,” but Flake and her husband, John, frequently keep their grandchildren, she said. The split-level home has three bedrooms on the first floor and the master bedroom on the second. Karen Flake is president and CEO of Mount St. Mary Academy in Little Rock. John Flake is chairman of the commercial real estate company Flake & Kelley Commercial of Little Rock.

Home Sales of $1 Million or More in 2016 in Pulaski County

*In millions   **Property being torn down
Sources: Pulaski County Assessor’s Office and real estate records

The number of seven-figure homes sold in Washington and Benton counties almost tripled in 2016 compared with the previous year.

Twenty-seven homes in the two counties sold for $1 million or more in 2016. In 2015, only 10 homes sold at or above that price point, while 18 homes reached or surpassed the $1 million threshold in 2014.

Brandon Long, owner and broker at Weichert Realtors-The Griffin Co. in Springdale, said inventory of high-priced homes turned over much quicker in 2016 — and so far in 2017 — than it had in recent years.

“I think one of the reasons is there are more buyers for the homes,” Long said. “The absorption rate has gone down quite a bit. The reason for that is not less inventory but just more buyers. That is what the trend was saying for sure.”

Long said there used to be about 10 buyers every month looking at and buying homes priced at $500,000 or more in northwest Arkansas. Now that number has doubled.

This week, we take a look at the 10 most expensive residential sales in the two-county region. The top home on the list is one of the most expensive in recent memory. While the most expensive home in 2015 sold for $1.4 million, 2016 saw Walton Enterprises pay $5.3 million for a 4,366-SF home on Old Whayne Road in Bentonville.

The home has sentimental value; it was the residence of Ferold Arend, the first president of Wal-Mart Stores Inc. and close associate of neighbor Sam Walton. The seller was Arend LLC, led by Arend’s daughter, Debi Havner.

A $1.75 million residential sale from last August has been omitted from the list. That’s because the 3,031-SF home and acreage on SW I Street in Bentonville that Orchard Properties of Fayetteville (through its SullivanSquareBentonville LLC) bought from Real Church Inc. has already been razed to make room for a 474-unit apartment complex.

Eighteen of the 27 seven-figure homes sold last year were in Benton County, with Pinnacle Country Club being a popular neighborhood. Four of the 10 most expensive homes are there.

“There are a lot of things going on in Centerton and in Rogers and in Pinnacle,” Long said. “Benton County is for sure leading the way as far as those million-dollar homes. The million-dollar properties are still pretty unique. I would still say that someone has to be in the market for that property.”

Long said homes in all price ranges are selling much faster than in recent years.

“With the economy doing as well as it is doing, everybody has a little more money anyway,” Long said.

$5.3 Million

Buyer: STJ Holdings LLC
Seller: Arend LLC, led by Debi Havner
Location: Old Whayne Road, Bentonville
Date: April 12
Year Built: 1968
SF: 4,366
 
STJ Holdings is a subsidiary of Walton Enterprises LLC, a commercial and residential property management company run by the Walton family. The home, which includes a 1,050-SF basement, is the former residence of the late Ferold Arend, the first president of Wal-Mart Stores Inc. and longtime member of the company’s board of directors. The home sits on 3½ acres and is close to Crystal Bridges Museum of American Art and downtown Bentonville.

$1.81 Million

Buyer: Karisa N. Sprague
Seller: Michael E. and Sherri K. Long
Location: West Pinnacle Drive, Rogers
Date: July 29
Year Built: 2013
SF: 6,697
 
Karisa Sprague is a senior vice president for Wal-Mart Stores Inc. of Bentonville, for whom she runs the North Central Division of its store operations. The residence is in the gated community of Pinnacle Country Club and has five bedrooms and seven bathrooms. It also features a heated pool, a cabana and an outdoor kitchen.

$1.66 Million

Buyer: Rickie Lynn and Dianna Lynn Ellis
Seller: Wilson Trust
Location: Pine Log Road, Garfield
Date: Sept. 12
Year Built: 2010
SF: 7,189

Rick Ellis is the owner and president of Mid-River Terminal of Osceola, a harbor service company on the Mississippi River. The home overlooks Beaver Lake and sits on 3 acres. It has four bedrooms and five bathrooms and a four-boat private dock. The property also features a two-level garage with space for eight vehicles, a heated storage area in the basement and two outdoor fireplaces.

$1.59 Million

Buyer: Monica Houle and Thomas McGurk
Seller: William A. and Cheryl Lester III
Location: Prestwick North Circle, Fayetteville
Date: June 30
Year Built: 2005
SF: 6,376

Monica McGurk is chief growth officer at Tyson Foods of Springdale, and Tom McGurk is an executive with the consulting firm BluWave. The home sits on 1 acre and has a pool, a four-car garage and 5½ bathrooms. It is adjacent to Blessings Golf Course, the private course founded by former Tyson CEO and current Chairman John Tyson.

$1.51 Million

Buyer: Bradley Scott and Alexis Lynn Smith
Seller: Smith Family Living Trust, led by Ryan Taylor and Catherine Rae Smith
Location: South Sechrest Circle, Rogers
Date: July 5
Year Built: 2004
SF: 8,983

This home sits on the golf course at Pinnacle Country Club, a gated community in Rogers. The home has five bedrooms, 5½ bathrooms and a 4,000-SF basement. It also has a three-car garage.

$1.47 Million

Buyer: David R. and Beverly A. Lamp
Seller: Lessley Joint Trust, led by Bill Lessly
Location: Rocky Ridge Road, Bentonville
Date: June 30
Year Built: 1997
SF: 6,844

Randy Lamp is the CEO of Apprentice Information Systems of Rogers. The property features a seven-bedroom, 5½-bathroom home on 24 acres. The home has a saltwater pool, horse barn and four-car garage.

$1.4 Million

Buyer: Samuel M. and Kelly A. Rothschild
Seller: Derek L. Collison
Location: Churchill Downs Drive, Springdale
Date: Dec. 15
Year Built: 2005
SF: 12,230

Sam Rothschild is the COO of the restaurant chain Slim Chickens of Fayetteville. The home has seven bedrooms, nine bathrooms and a two-story library. It also has a wine cellar and a large pool with three waterfalls and a swim-up bar.

$1.39 Million

Buyer: Tracy L. and Kevin O. Mitchell
Seller: Ismat Aziz
Location: West Pinnacle Drive, Rogers
Date: Aug. 12
Year Built: 2012
SF: 5,168

Ismat Aziz was the chief human resources officer at Sam’s Club before being hired by Sprint in July 2016 to be its senior vice president of human resources. No information about the Mitchells was available. The home has seven bedrooms, 7½ bathrooms and a 1,674-SF guest house. It also features a saltwater pool.

$1.3 Million

Buyer: Louis A. and Jennifer J. Martin
Seller: Kalpesh H. & Gina M. Patel
Location: Plymouth Lane, Rogers
Date: July 17
Year Built: 2011
SF: 5,310

Louis Martin is the president of the Coca-Cola Co.’s customer relations team for Global Wal-Mart and Sam’s Club. The home has five bedrooms, six bathrooms and a wine room. It also has a pool with a connected hot tub and a swim-up bar, a four-car garage and media and exercise rooms. It is located in the gated community of Pinnacle Country Club.

$1.3 Million

Buyer: James R. and Jacqui E. Lefler
Seller: Shelby P. Field Trust
Location: East Township Street, Fayetteville
Date: Aug. 16
Year Built: 2005
SF: 5,713

James Lefler is an executive with Dragonfly Industries International of Frisco, Texas  — the company that unsuccessfully attempted to put a wind farm in Elm Springs in 2015 — and Jacqui Lefler is vice president of Heartland Payment Solutions of Fayetteville. This home made the 2015 Expensive Homes list after Shelby Field bought it in June 2014 for $1.5 million before transferring it to the trust. The home has four bedrooms, 3½ bathrooms, a wine cellar and a media room. There is a pool with a guest house, and the 3-acre property is bordered by a creek.

The craft beer scene in Hot Springs is growing red hot.

♦ Core Brewing & Distilling Co. of Springdale is close to signing an agreement for its latest brewpub location, in Hot Springs, says Jesse Core, company founder. When we have more information, we’ll share it.

♦ Bubba Brew’s Brewing Co. of Bonnerdale (Hot Spring County) is preparing to open its Spa City Taproom in the next 90 days at 528 Central Ave. in downtown Hot Springs.

♦ SQZBX, a pizza restaurant and microbrewery pronounced “squeezebox,” is a couple of months out from opening at 236 Ouachita Ave. It’s owned by husband-wife duo Zac Smith and Cheryl Roorda.

♦ Grateful Head, a pizza, beer and wine restaurant promising to offer local brews, hopes to be open by Labor Day at 100 Exchange St. Owned by Billy Bob Carper and his brother, Kevin, the restaurant is branching out from its first location, in Hochatown, Oklahoma, near Broken Bow.

McCain Mall last week sued David’s Burgers alleging the burgeoning central Arkansas burger chain failed to open a location in the North Little Rock mall as promised.

The mall is seeking $447,804.

It’s the second lawsuit against David’s Burgers over a lease in the last six months. A suit filed by Arvest Bank in January asked a court to declare that a lease between David’s Burgers for its location on South Bowman Road in Little Rock has been terminated, that the restaurant is now a month-to-month tenant and that Arvest has the power to end the tenancy by giving David’s Burgers 30 days’ notice.

Both lawsuits were filed in Pulaski County Circuit Court.

The suit by McCain Mall Co. Ltd. names as defendants David’s Burgers McCain Mall Inc. and owners Alan Bubbus and his wife, Jessica. The suit said that David’s Burgers’ lease began Feb. 12, 2016, and continues through 2025.

However, “Burgers failed to open for business at the McCain Mall location by February 12, 2016, and has not done so as of the date of this Complaint,” the suit said.

On Feb. 23 of this year, according to the lawsuit, McCain Mall demanded that the defendants “pay all past due rent, late charges, and future rent, totaling $447,804.22,” but “Such demands have been ignored.”

No formal response had yet been made to the McCain Mall lawsuit, which was filed Wednesday.

Asked about the lawsuits on Thursday, Bubbus said, “This ain’t Mayberry, is it?”

David’s Burgers didn’t locate at the property, he said, because “long story short, it doesn’t have a grease trap.”

Lease Dispute
The lawsuit by Arvest, which owns the property at 101 S. Bowman Road, was filed against David’s Burgers Bowman Co. The suit describes a months-long effort to negotiate a new lease or a short-term extension of the lease instead of an automatic renewal of the agreement, which was set to expire May 1, 2016.

The suit said that in a Feb. 18, 2016, email Bubbus gave notice he was vacating the property and so terminating the lease. On Feb. 26, 2016, Art McWilliams, vice president of Arvest Bank, sent Bubbus an email that referred to a potential offer to buy the building, according to the suit.

That same day, Bubbus responded saying the company still had three five-year options on the property and was still under contract, the Arvest suit said. “Since that time, Bubbus has refused to acknowledge that he effectively terminated the Lease via e-mail and has taken the position that the Lease was renewed automatically on May 1, 2016.”

In an answer and counterclaim filed in March, David’s Burgers denied Arvest’s claims and said that the company had asked Arvest to lower the rent and had told the bank it was interested in buying the property.

David’s Burgers also said that Arvest had indicated that CVS Pharmacies was interested in buying the building and that Arvest later accepted an offer by CVS for the building. (Pulaski County property records, however, show that Arvest is still the owner.)

David’s Burgers asked the court to find that Arvest had breached the lease agreement and that the restaurant company had been injured by the breach. It asked for the suit to be dismissed and to be awarded unspecified damages and attorney’s fees.

On Tuesday, the court filed a protective order in the Arvest case to keep private material claimed as confidential by the parties to the suit.

Bubbus told Arkansas Business on Thursday that he thought that he and Arvest were close to an agreement in its lawsuit. “I think everything’s going to get worked out on that,” Bubbus said.

“Things are going to happen. You’ve just got to say your prayers and do the best you can.”

A 162,970-SF printing facility in Little Rock’s Otter Creek Industrial Park is under new ownership after a $5.49 million sale-leaseback transaction.

Indian Bayou Farms LLC, led by Stephanie Rae Smith, purchased the 11501 Otter Creek South Road project. The seller is The Watkins Co., led by Richard Watkins.

The deal is funded with a five-year loan of $3.6 million from Relyance Bank of Pine Bluff.

The 12.66-acre development previously was linked with a December 2005 mortgage of $3 million held by Simmons Bank of Pine Bluff.

Watkins bought the property for $3.6 million in November 1996 from the Handleman Co. of Detroit.

Farmland Acquisition
Land to expand the Little Rock Port Industrial Park tipped the scales at $2.9 million.

The city of Little Rock acquired nearly 39 acres from Roseleta Bartholomew for $950,000 and about 273 acres from her R Bar Farms LLC for $1.95 million.

The property is on the west side of Frazier Pike at West Damsite Road.

The Bartholomew family purchased the bulk of the property for $480,000 in November 1988.

The seller was the predecessor of Lyon College of Batesville, Arkansas College.

Shogun Sale
A 5,348-SF restaurant in Little Rock’s Riverdale area changed hands in a $450,000 deal.

East Cantrell Development Group LLC, led by James Harkins and Edward Bailey, bought the Shogun Japanese Steakhouse at 2815 Cantrell Road.

The seller is LSPE Development LLC, led by Steve Im. The deal is financed with a six-month loan of $405,000 from Relyance Bank.

The 0.47-acre development previously helped secure an August 201 mortgage of $5.5 million held by BancorpSouth Bank of Tupelo, Mississippi.

The property was acquired in May 1982 for $312,500. The seller was the Elaine Roescheise Fisher Trust.

NLR Office
An 8,000-SF office property in North Little Rock drew a $436,000 foreclosure transaction.

Little Rock’s Rector-Phillips-Morse Inc., led by Pete Hornibrook and Kris Upton, purchased the 5111 John F. Kennedy Blvd. project and paid an additional $17,361 to cover back taxes owed by the previous owner.

The deal is backed with a $245,000 loan from First Security Bank of Searcy.

RWL Investments LLC, led by Ron Lazenby, defaulted on an April 2015 mortgage of $1.1 million that was partially secured by the half-acre development. The project was bought in September 2008 for $545,000 from 5111 JFK LLC, led by Karen Hall.

Expansion Room
A 0.97-acre commercial site in North Little Rock is under new ownership after a $180,000 transaction.

Little Scholars Academy LLC, led by Amanda and Michael Johnson, acquired the property adjoining the east side of its 10910 Maumelle Blvd. facility.

The sellers are Troy Wilkins Jr. and his wife, Sandra. The Wilkins family carried a $140,000 mortgage to fund the deal.

The property was purchased for $110,000 in August 2002 from James Butler and Lee and Martha Kierre.

Heights Manor
A 5,873-SF house in the Heights neighborhood of Little Rock weighed in at $1.47 million.

Brad and Jodi Thomas bought the house from James and Brooks Klepper.

The deal is financed with an $875,000 loan from First Service Bank of Greenbrier.

The residence previously was linked with an October 2011 mortgage of $417,000 held by Bank of Little Rock Mortgage Corp. and an August 2016 mortgage of $242,000 held by Regions Bank of Birmingham, Alabama.

The Kleppers acquired the property for $320,000 in October 2009 from the Louis E. Bona & Mary K. Bona Joint Revocable Trust.

Rural Residence
A 4,525-SF home in west Pulaski County rang up a $940,000 sale.

Drew and Tiffany Baker purchased the 4.97-acre spread from Mark and Rhonda McMurray.

The deal is funded with a 15-year loan of $350,000 from Primary Residential Mortgage Inc. of Salt Lake City.

The McMurrays bought the residence for $880,000 in May 2016 from Richard and Patricia Farnsworth.

Germay Abode
A 5,463-SF home in the Germay Court neighborhood of west Little Rock’s Chenal Valley development changed hands in a $718,000 transaction.

Loore Moore-Parrish acquired the house from SWLR Properties LLC, led by Rick Ferguson. The deal is backed with a 30-year loan of $574,400 from First Financial Bank of El Dorado.

SWLR Properties purchased the residence for $725,000 in May 2016 from Oscar Washington Jr. and his wife, Doris, and their namesake trust.

Mirabel House
A 3,850-SF home in the Mirabel Court neighborhood of west Little Rock’s Chenal Valley development sold for $556,000.

Thomas Lee Jr. bought the house from Stevens Commercial Contractors Inc., led by Jackie Stevens. The deal is financed with 30-year loan of $472,600 from Ark-La-Tex Financial Services LLC of Plano, Texas.

The residence previously was tied to a May 2016 mortgage of $448,000 held by First Security Bank. The site was acquired for $82,000 in December 2015 from Deltic Timber Corp. of El Dorado.

PV Home
A 4,474-SF home in west Little Rock’s Pleasant Valley neighborhood drew a $529,900 transaction.

Thomas and Jennifer Pledger purchased the house from Twin Oaks Trust, led by William and Rhona Temple.

The deal is backed with a 30-year loan of $423,200 from BNC National Bank of Glendale, Arizona. The property was bought for $385,000 in August 2002 from Brian and Julia Lisles.

Seven-Digit Construction

New Home    $1,908,000
80 Hallen Court, Little Rock
HA Custom Homes LLC, Little Rock

CHICAGO/SAN FRANCISCO - When Wal-Mart Stores Inc. bought online retailer Jet.com for $3 billion last year, it marked a crucial moment - the world's largest brick-and-mortar retailer, after years of ceding e-commerce leadership to arch rival Amazon, intended to compete.

On Friday, Amazon.com Inc. countered. With its $14 billion purchase of grocery chain Whole Foods Market Inc., the largest e-commerce company announced its intention to take on Wal-Mart in the brick-and-mortar world.

The two deals make it clear that the lines that divided traditional retail from e-commerce are disappearing and sector dominance will no longer be bound by e-commerce or brick-and-mortar, but by who is better at both.

Amazon's purchase of Whole Foods also brings disruption to the $700 billion U.S. grocery sector, a traditional area of retailing that stands on the precipice of a ferocious price war. German discounters Aldi and Lidl are battling Wal-Mart, which controls 22 percent of the U.S. grocery market, with each vowing to undercut whatever price the others offer.

The stakes are highest for Wal-Mart. Amazon's move aims at the heart of the Bentonville, Arkansas-based retail giant's business - groceries, which account for 56 percent of Wal-Mart's $486 billion in revenue for the year ending Jan. 31. With the deal, Whole Foods’ more than 460 stores become a test bed with which Amazon can learn how to compete with Wal-Mart’s 4,700 stores with a large grocery offering that are also within 10 miles (16 km) of 90 percent of the U.S. population.

Amazon is expected to lower Whole Foods' notoriously high prices, enabling it to pursue Wal-Mart's customers. The push comes as Wal-Mart is headed in the opposite direction - going after Amazon's higher-income shoppers with a recent string of acquisitions of online brands such as Moosejaw and Modcloth and on Friday, menswear e-tailer Bonobos.

Wal-Mart may be ready. In preparation for the grocery price war, Wal-Mart in recent months has cut grocery prices, improved fresh food and meat offerings, modernized shelving and lighting in its grocery aisles, and expanded its online grocery pickup service.

Marc Lore, the Jet.com founder who now runs Wal-Mart's e-commerce business after selling a startup to Amazon, told Reuters in an interview that Amazon's move does not change Wal-Mart's game plan. "We're playing offense," he said.

Wal-Mart is offering curbside pickup of online grocery purchases at 700 locations, with 300 more planned by year end. It also is testing same-day fresh and frozen home delivery from 10 of its stores. "We see an opportunity to do a lot more of that," Lore said.

Roger Davidson, who oversaw Wal-Mart's global food procurement and now is president of Oakton Advisory Group, said the deal will reduce Wal-Mart's brick-and-mortar advantage.

"I think this acquisition is a concern," he said.

Some industry observers say Amazon will find it difficult to use Whole Foods to pull away Wal-Mart shoppers because the two stores appeal to different customers.

But Michelle Grant, head of retailing at market research firm Euromonitor, said Amazon could use an obscure part of the Whole Foods portfolio - Whole Foods 365 - to lure Wal-Mart shoppers.

Whole Foods 365 offers private-label goods and lower prices than typical Whole Foods stores, and is targeted at younger, value-conscious shoppers. Amazon could provide the financial capital and tactical ability to build that into something big.

"That (Whole Foods 365) may become a big problem for Wal-Mart," Grant said.

Amazon, which reported $12.5 billion in cash and equivalents and a free cash flow of $10.2 billion in the year ended March 31, has plenty to spend. Wal-Mart reported $6.9 billion in cash and equivalents and $20.9 billion in free cash flow at its year ended Jan. 31.

Brittain Ladd, a former senior manager at Amazon who worked on its brick-and-mortar strategy, said Amazon will use Whole Foods to test concepts for the grocery store of the future.

Ladd, who left Amazon in March, said Amazon will seek to eliminate checkout lines by using technology that automatically scans goods as customers add them to their shopping carts. It will select merchandise based on Amazon's vaunted customer data, and potentially expects the use of technology to change prices during the course of a day.

Amazon declined comment on competition with Walmart but spokesman Drew Herdener said in a statement the company has no plans to cut jobs or use technology in development at its Seattle Amazon Go store to automate jobs of cashiers.

Ladd, who helped with AmazonFresh's global expansion and now is a supply chain consultant, said an Amazon-owned Whole Foods also likely will offer in-car pickup of online purchases, and home delivery from Whole Foods stores, add pharmacies and showcase Amazon devices inside the stores.

"Amazon will reduce prices and change the assortment of products carried in Whole Foods stores to attract a larger customer base," said Ladd. "Kroger and Wal-Mart will be impacted as their customers will defect to Amazon."

(Editor’s Note: MagnoliaReporter.com invited Southern Arkansas University professor and Cuba expert Ed Kardas to provide his views about President Trump's decision, announced Friday, to reinstitute trade and travel restrictions against the nation of Cuba. We got permission to reprint Kardas' column here; you can the original post here.)

Friday's news about Cuba was disheartening to me given that I have visited there four times in the last two years and lived there as a child during their Revolution.

Jetting into Havana for the first time since I boarded a Miami-bound DC-3 55 years ago seemed like I was having an improbable dream. But I was awake and my mission was to make contact with Cuban universities and set up an exchange program with Southern Arkansas University.

It took two more trips, but we did it. SAU and the University of Artemisa began collaborating last November when I accompanied Steven Ochs, chairman of the SAU Art Department, and Veronica Ramirez, an SAU art student. In Artemisa, our two artists and a small contingent of Cuban artists created a large mural on their campus. At the end of that project we all believed we had done the impossible.

Just Thursday, we finally heard that three Cubans will be visiting SAU for a week to paint another mural, this one on our campus. The visitors will include their college president, Carlos Eduardo Suarez Ponciano; Abel Alfonso Castro, a member of their art faculty; and Yoán Pérez Nuñez, an art student. They plan to arrive on Aug. 5 and depart on Aug. 12.

Our arrangement with the University of Artemisa is that the visiting group pays for their travel expenses and the host pays for food and lodging and is responsible for local transportation.

When we visited Artemisa we three stayed in the Campoamor Hotel and all of our meals were provided by the Cuban government through the university.

This simple account fails to demonstrate the amount of work and time necessary in Cuba and here to accomplish our goal. Our Cuban counterpart, Margarita Gonzalez, had to cut through red tape daily.

The words of an old Cuban song came to us. The sad refrain, "no pongas piedras en mi camino" (don't put rocks on my path), sustained us as we removed rock after rock daily. Our SAU group left Cuba having worked more than eight hours every day to create that mural. Language was no barrier even though Ochs spoke no Spanish and the Artemisa artists had no English. But as soon as the topic turned to art, to line, to shading, to composition or to any other artistic convention, there was no need for language. Art, it turns out, needs only itself for artists to communicate with each other.

Friday's news is just another rock, albeit a really big one. President Trump has not closed off Cuba to us, but he has made individual travel there much more difficult but not impossible. On top of that, the Department of Commerce noted that it "will implement any necessary changes via amendments to its Export Administration Regulations. OFAC expects to issue its regulatory amendments in the coming months. The announced changes do not take effect until the new regulations are issued." Hopefully, our visitors will still be able to be here as planned.

What about the future? SAU has scheduled a signing ceremony in Little Rock between President Trey Berry and Ponciano. In addition, Berry is scheduled to visit Havana and Artemisa in February in conjunction with an international meeting in Havana, Universidad 2018. It was at the 2016 version of that meeting that Juping Wang and I first met our new colleagues from Artemisa. All of us have come a long way since then and we do not wish to bring our efforts to a halt.

Arkansas' two U.S. senators announced Friday that they, too, were against the new Trump policy toward Cuba. They know that Cuba is a prime market for Arkansas rice. In fact, there were several rice farmers with us on that first trip to Cuba two years ago. Hopefully, other officials at all levels of government will work to undo the changes.

Cuba is almost beyond description. I always say there is no place on earth like it. I also wonder how Cuba can be so geographically near yet so distant otherwise. Its people have overcome hardships most of us can hardly imagine. They bear those hardships with a smile and a song. In Artemisa, people played music and danced on the city's central square well into the early hours of the morning. 

Our group was always treated well by friends and strangers alike. Go to Cuba; you'll like it. Let's take the politicians out of the equation and, instead, meet people face-to-face with handshakes and not threats.

(Ed Kardas was the son of an American diplomat and lived in Cuba before the revolution led by Fidel Castro. He is a professor of psychology and has worked at SAU since 1980. He is director of the SAU Honors College.)

PLUMERVILLE — Tyson Foods has installed video cameras in key areas of its poultry operations and will test new ways to slaughter birds — not in response to previous "gotcha" moments but under a corporate philosophy that notes its role as a steward for millions of chickens, the company said.

The Springdale-based meat producer last month hired its first chief sustainability officer and on Wednesday will announce a series of animal well-being initiatives. In an interview Tuesday, Justin Whitmore said that while abuses at myriad companies have been exposed through secretly recorded video, taking action now prevents having to react later.

"We want to learn from the opportunities and the challenges we face," he said, seven weeks after taking his post. "If we see something come up in our system, we'll look to have the appropriate measures in place to ensure they don't recur."

Tyson last August fired 10 workers after secretly recorded video compiled by an animal rights group showed chickens being crushed or swung by their legs and wings. Tyson terminated a contract with a farmer a year earlier after another group released video showing workers standing on birds' heads to break their necks. Over the past year, Hormel Foods has hired third-party auditors to review hog farms after video showed some animals in very tight quarters and another animal being slammed to the floor.

Lora Wright, Tyson's director of animal well-being, said Tuesday that over the past year, Tyson has installed the industry's largest third-party monitoring system — with off-site auditors reviewing operations at Tyson's 33 poultry processing plants across the U.S. and concentrating on areas where workers handle live animals. The company also has trained nearly five dozen animal well-being specialists like Stacy Barton, who grew up on a poultry farm.

"We're making sure the birds are being handled properly and treated with respect and care in every step of the process," he said Tuesday outside a 120,000-bird operation near Plumerville. The well-being officers are also trained on how cattle and hogs should be handled. Some of their visits are announced; others are not.

Additional but less-intensive monitoring among the growers who raise chickens for Tyson is in the works, said Adam Aronson, whose New York-based company Arrowsight monitors operations from a hub in Huntsville, Alabama.

"We're spot checking the workers throughout the day," Aronson said. Arrowsight reports back to Tyson regularly on whether workers are handling birds properly.

While it's a little like Big Brother, the general concept is "if you could replicate having your best front-line managers at all times," he said. "We're like the football coach looking down from the booth with a headset. That's effectively what is going on."

He said Tyson is by far the deepest into video auditing of poultry operations, after other companies pioneered it for beef, pork and turkey.

Bret Hendricks, who is responsible for the 7 million chickens that will one day be processed at Tyson's plant in Dardanelle, said the company has recognized that keeping animals content helps the bottom line.

"If they're happy, the more they're going to eat and the more they're going to grow," Hendricks said before a tour of a growing operation at Plumerville. Inside, some of the 120,000 nine-day-old birds raised here scurried underfoot; others stayed near automated feeding and watering stations. Each of the birds weighed a little less than a half-pound each. At 33 days old, they'll average about 3.65 pounds and be ready for slaughter.

The company also said it will experiment with "controlled atmosphere stunning," in which birds are suffocated by carbon dioxide rather than being stunned and having their throats slit.

"We think that there could be an opportunity to process and slaughter the birds in a more-humane way," Whitmore said. "We ... are going to test it."

The company said it will also consider adding perches for the birds.

(All contents © copyright 2017 Associated Press. All rights reserved.)

After crashing on takeoff, Fayetteville's Legacy Building is finally approaching full developmental realization under its fourth ownership group.

More than a decade after the first condominium changed hands, only three of the 38 units remain unsold in the seven-story project overlooking the Dickson Street Entertainment District.

Brisk sales of $2.7 million during the past nine months reduced the inventory of never-been-sold residential units from 12 to three.

"The ink's not dry, but we have a loose commitment on another unit," said Mitchell Massey, a northwest Arkansas real estate investor and partner in Legacy Investors Group. "It's been a great project. The demand is very solid for the Dickson-area condos, and the values seem to be on the rise."

Back in September, Legacy Investors Group paid $3.2 million for the remaining unsold condos and 8,741 SF of unfinished second-floor space.

The group stepped onto a meandering ownership trail that began in 2005 with the launch of the Legacy Building project by local developer Brandon Barber.

When his fortunes cratered in 2007, Legacy became bogged down in the ensuing financial chaos and the bursting of the real estate bubble a year later.

Foreclosure and four years of bank ownership followed. In 2012, the Broe Group of Denver acquired the unsold pieces of Legacy as part of a multi-property transaction with Metropolitan National Bank of Little Rock.

"Broe got the property in a grab bag purchase, made improvements and spruced it up," said Whitley Dunn, manager of the property since February 2010. "The Legacy Building has really come around."

By his count, more than half of the units are owned as second homes. Also in the mix are eight resident owners and six tenants renting condos.

When Broe decided to sell its remaining stake last year, Legacy Investors Group entered the picture and began marketing units at $285 to $305 per SF.

"We thought the timing was right to make this investment in the Dickson Street area," Massey said. "We were a little more flexible on our pricing strategy. There were more buyers ready to buy in that area.

"The three of us have been great friends for a long time. It was something fun to do together."

Massey and his fellow partners, Conway businessmen Todd Ross and Chris Crain, were encouraged by the market response to add four new condos.

Unfinished second-floor space originally envisioned for commercial use will instead be turned into a pair of two-bedroom units in the 1,100- to 1,200-SF range and two three-bedroom condos with a total living area of 1,600 SF to 1,900 SF. 

"That's where the train is headed," Massey said. "The other thing we toyed around with is the idea of: Could we convert that space into some sort of an inn?

"There's probably enough space to have 12-15 rooms, more of a luxury boutique hotel. We haven't gone through full due diligence to see if it would work.It's interesting to think about having some type of top-notch hotel play there. We've left question marks on that."

Originally, the space was marked for potential office or retail use when the project was launched. That didn't take flight although Legacy Investors Group waded into negotiations for an office deal.

"We were in pretty deep discussions with Terry Turpin and his Acumen Brands to move their offices onto the second floor," Massey said. "That didn't pan out, which probably worked out better for us since they ended up closing shop.

"When we went down that path, we had done enough analysis on the market that we determined we could get $15-$20 per SF rental rate for residential space and not be tied to office. If I want to sell, I can. Residential rental has less risk associated with it than an office space rental."

Other nonresidential efforts in the Legacy Building have not fared well either. Three restaurants have called the project home.

Legacy Blues, featuring live music along with food and drink, opened in September 2011. The venture, owned by the Jim "Jimmy the Biscuit" Lefler family, closed in January 2013.

Next up in February 2013 came Table Mesa, renamed Table on the Hill in October 2014. The dining destination for modern Latin cuisine, operated by the Table Mesa Restaurant Group, closed in August 2015.

The Grillehouse Steak & Seafood restaurant, dubbed "a tradition for years to come" when it opened in October 2015, was closed in May "for the summer." Its future is uncertain with a possible relocation in play.

Its 4,377-SF space, bought in July 2016 for $808,426 by restaurateur Clint Boutwell of Oxford, Mississippi, is now listed for sale at nearly $1.2 million.

Envisioned by Brandon Barber to be his legacy development, the building has become a Fayetteville landmark.

Legacy Players

Sept. 6, 2016

Ownership: Legacy Investors Group LLC, led by Mitchell Massey, Chris Crain and Todd Ross

Bought 12 condominiums for $3.2 million plus second-floor space that will be developed into four condos. Sold nine condos for more than $2.7 million.

Dec. 28, 2012

Ownership: Legacy BDF III LLC, an affiliate of the private investment firm Broe Group of Denver

Bought 24 condos for $4.2 million plus undeveloped second-floor space that was originally planned for commercial use. Sold 12 condos for $4 million.

Nov. 24, 2008

Ownership: Metropolitan National Bank of Little Rock, 47.3 percent; First National Bank of Fort Smith, 35.3 percent; and First National Bank of Green Forest (now AnStaff Bank), 17.4 percent

Recovered 30 condo units at an $11.2 million foreclosure sale plus undeveloped commercial space and recovered an additional unit through a separate foreclosure. Sold seven condos for $4 million and commercial space for $700,000.

Sept. 26, 2005

Ownership: Lynnkohn LLC, led by Brandon Barber and Seth Kafka

Developed space for what became 38 residential condos along with space planned for commercial use.

Construction is backed with a $19.4 million financial package from Legacy National Bank of Springdale, Metropolitan National Bank, First National Bank of Fort Smith and AnStaff Bank on Dec. 15, 2005.

Sold eight condos beginning in March 2007 for nearly $2.9 million before lenders landed an $18.7 million foreclosure judgment in July 2008.

Is Dave & Buster's of Dallas coming to Rogers' Pinnacle Hills Promenade Mall? 

There is a rumor the Dallas-based restaurant-entertainment chain has set its sights on the former food court area of the mall. Dave & Buster's has been advertising employment opportunities in northwest Arkansas. 

Dave & Buster's opened a location in June 2016 in Little Rock, the first Dave & Buster's in the state.

David Faulkner, the general manager of Pinnacle Hills Promenade, said the mall is close to disclosing a new tenant for the 27,000-SF facility that used to be the mall's food court. The building, directly in front of the Malco Pinnacle Hills 12 movie theater, has been used as a special events center for more than a year, Faulkner said.

If Dave & Buster's does move into the facility, Whispers hears it would take 20,000 SF for a smaller-concept restaurant. The Little Rock Dave & Buster's is in a 30,000-SF space.

Faulkner wouldn't confirm or deny which restaurant was moving into the space, but he did say the new tenant was taking 20,000 SF, leaving 7,000 SF for the mall to still hold meetings and special events. 

Faulkner was much more open about two restaurants scheduled to open later this year at the mall: Big Orange Northwest and MidiCi. Big Orange, a restaurant by Yellow Rockets Concepts of Little Rock, and MidiCi, a brick-oven pizza chain based in Sherman Oaks, California, will be side-by-side on Promenade Drive. Faulkner said the mall paid to have a half-moon drop-off site built in front of the two restaurants.

Yellow Rockets Concepts is also planning to open a Local Lime restaurant at the former site of the Texas Land & Cattle, Faulkner said.

"It's exciting to bring in some new restaurants to give people options," Faulkner said. "Right now you hear that malls are dying. These restaurants are good examples that malls are alive and well."

Will Conway have a trendy "walkable" downtown? Salter Properties is working on it. 

The firm expects to break ground on its multifamily J Lofts development at 1050 Spencer St. next month and rent the one- and two-bedroom units next spring. 

The 21 apartments will be behind King's Life Music and Blue Sail Coffee. Branches of Malvern National Bank and U.S. Bank are its neighbors to the left and right.

Missing from that picture is a budget, but Property Manager Jordan Broadstreet said his team had not determined what the project will cost yet. 

He said it'll take about 10 months to construct the four-story building, and parking will be on the ground floor. 

The firm has not pre-leased the units yet but has five or six people on a waitlist for when it does.

Larry Kester of Architects Collective in Tulsa in the architect; Salter Construction Inc. is the contractor.

The only other similar project underway in downtown is the $3 million John Daly's Steakhouse project that includes four 1,000-SF lofts. 

Developers had been pushing for a June 1 opening date at 912 Front St., but S.A.M. Group CEO Adam Waldron told Whispers last week that the opening had been pushed back to August.

You may have heard that Red Gate Liquor at 13325 Interstate 30 in Little Rock is closing after 65 years in business.

Well, Red Gate owner Druetta Craig told Whispers why, and the reasons are two-fold.

Red Gate, one of the first/last liquor stores near the Pulaski-Saline county line, lost 50 percent of its business after Saline County voters in 2014 approved alcohol sales, Craig said.

The other reason is that Craig is almost 69 years old and she's ready to retire.

The store's last day is Friday and everything in the building is discounted, from fixtures to liquor, though the liquor is pretty picked over, Craig said.

Her father-in-law established the business, originally located on Highway 5, in 1952. He purchased the I-30 property at the time the interstate was being constructed.

"My husband and I worked the business almost 50 years together, and he passed away five years ago," she said. "I have continued on, but I am ready to give it up. I'm ready to retire."

Red Gate sits on 28 acres that have been listed with Rector Phillips Morse. She's asking $3.5 million. "That's my retirement money."

Customers have been coming in sharing stories about their first purchases at the store, she said. "It's kind of bittersweet," Craig said.

But, it's time. "I just want to relax and enjoy this world."

The recent sale of Little Rock's Chef Shuttle to Bite Squad, based in Minneapolis, highlights the biggest trend in the restaurant industry these days: food delivery. The Nation's Restaurant News calls delivery "one of the fastest-moving trends in industry history. If not the fastest."

"More than 80 percent of publicly traded restaurant chains, not counting pizza chains that already deliver, are at least testing delivery at the moment — based on an analysis of company earnings calls and announcements," the trade journal reported earlier this month.

The importance of food delivery reflects the importance of convenience to diners. At the same time, the food-delivery sector is growing and as it grows, it's consolidating.

Ryan Herget, the president of Chef Shuttle until its sale, was keenly aware of where the industry was heading. "That was our goal all along — to position ourselves where we could reap the financial reward when the industry consolidated, and Bite Squad saw an opportunity with Chef Shuttle and took it," Herget said.

Bite Squad was founded in Minneapolis in August 2012 by Kian Salehi and Arash Allaei. "These two friends met in college here in Minnesota, and have been involved in several partnerships over the years that have centered around how technology can connect local businesses to the customers they serve," according to Craig Key, vice president of marketing for Bite Squad.

Bite Squad is now in 20 markets and 14 states across the country. In addition to Chef Shuttle, Bite Squad recently merged with Doorstep Delivery in Orlando, Florida.

"We want to serve as many customers as we can," Key said. "We've grown organically into some markets, and we've also had some right kind of partnerships like the one with Chef Shuttle where it's a win-win. We get to benefit from the great business and customer model that Chef Shuttle has built."

It's also a win, Key said, for the customers of Chef Shuttle, which at the time of its sale operated in three metro areas — central Arkansas, northwest Arkansas and Memphis. "We bring a technology and a logistical excellence," he said. "Folks are going to see an improvement in their order times." 

In delivering food, restaurants can employ their own drivers as so many pizza places do, or they can turn to the burgeoning delivery service sector that includes not only Bite Squad but Amazon Restaurants, UberEats and the granddaddy of delivery services, Grubhub, traded on the New York Stock Exchange. (Analysts think Grubhub might be Amazon's next acquisition target after its recent purchase of Whole Foods.)

Of the food-delivery sector, Key said: "As we are now entering a very real-time consumer economy, where consumers do expect what I want, when I want, how I want, it's natural that a category like restaurant delivery service is going to experience a boom. And we're right in the middle of that."

Loca Luna, Red Door Drop Out

In an interview in Mid-June, Mark Abernathy, a veteran Little Rock restaurateur, said he was "on the fence" about food-delivery services. "If people use Chef Shuttle or something like that, they're not coming in my restaurant, so they're not tipping my employees, they're not buying drinks and they're taking a big chunk. We don't run on a big profit margin."

He said he'd been satisfied with Chef Shuttle's service but it was too early to tell with Bite Squad. A week later, however, Abernathy said his restaurants — Loca Luna and Red Door — had dropped out of the service because of problems with deliveries. "I'm sure they'll eventually get it worked out, but now — Chef Shuttle, No. 1, was a local company, and we had a phone number we could call if we had any problems," Abernathy told Arkansas Business. "This is some out-of-state group that doesn't even have a number you can call if you need help."

In response, Bite Squad's Co-Founder and CEO Kian Salehi said in a statement: 

"Overall, we've experienced a successful transition in Little Rock — the response we've received from customers and restaurant partners since making the switch has been overwhelmingly positive. Our order volume is already more than what Chef Shuttle was processing, and we've significantly improved delivery times in just 3 weeks — we're confident we can further improve too. We've lost very, very few restaurants."

If Amazon.com Inc. hopes to revolutionize grocery delivery, then its bid to buy Whole Foods Market Inc. for $13.7 billion will be just the start of a long and costly process.

The e-commerce giant would need to add a large network of specialized grocery distribution warehouses, former AmazonFresh employees and logistics experts said. This is something Wal-Mart Stores Inc. and other competitors have already done. Whole Foods, with a relatively small distribution footprint of its own, does little to change the picture for Amazon, they said.

Amazon has a little more than 3 million square feet of U.S. warehousing dedicated to its existing AmazonFresh and Prime Pantry grocery programs - a tenth of the warehouse space Wal-Mart has for specialized food distribution, according to logistics consulting firm MWPVL International Inc.

"AmazonFresh really was for lack of a better word an after-thought," said Brittain Ladd, who until March was a senior manager for the grocery delivery program, which launched in 2007.

One key to Amazon's success in general retail sales has been its speed in delivering products to consumers, facilitated by warehouses located strategically throughout the United States. As of 2016, the company had about 100 million square feet of space in its fulfillment and data centers, some of it outfitted with state-of-the-art robotics to boost efficiency.

Facilities for distributing fresh food are far more complicated than ordinary warehouses. A single facility can need a half dozen or more temperature settings to house products from Popsicles to berries. Some require certification from the U.S. Food and Drug Administration, and extra care must be taken to keep shelves clean and prevent pests from contaminating food.

Whole Foods has more than 1 million SF of warehouse space for distribution to its markets, and a chunk of its inventory goes straight from suppliers to stores, MWPVL said.

"It's a peanut. It's nothing," MWPVL President Marc Wulfraat said of Whole Foods' distribution. "If Amazon wants to become a dominant grocery company in a short period of time, then there would be an investment required, and it would be big."

Amazon, which did not return requests for comment, has not detailed its plans for Whole Foods.

12 OR MORE GROCERY WAREHOUSES NEEDED

Amazon's fulfillment expenses jumped 31 percent in 2016 - a bit faster than in prior years and faster than its retail sales growth - to $17.6 billion, according to its annual regulatory filing.

Industry experts estimate the company would have to add a dozen or more grocery warehouses, particularly if it wanted to supply Whole Food stores in addition to homes. The cost to do that is unclear.

They said Amazon would likely continue to rely on United Natural Foods Inc. to supply Whole Foods with hard-to-source products, but would probably aim to cut costs and handle more of the distribution for conventional items.

Even using Whole Foods stores to provide food for delivering to nearby urban shoppers would have hard limits, since many outlets lack the floor space to handle thousands of online orders.

"It’s a space issue for stuff coming through. It’s a labor issue for people tripping over each other," said Tom Furphy, former vice president of consumables and AmazonFresh, and now chief executive of Consumer Equity Partners. There would also be a risk that "the quality starts to go down because the e-commerce orders are getting better product."