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Wal-Mart, Hostess Collaboration Delivers 'Deep Fried Twinkies'

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NEW YORK — The deep-fried Twinkie is jumping from the state fair to the home freezer.

Hostess Brands, the maker of lunchbox treats like Ho Hos, is launching packaged "Deep Fried Twinkies" starting Friday that mark its first foray into frozen foods. The cream-filled snack in vanilla or chocolate is the result of a yearlong collaboration between Hostess and Wal-Mart, as both companies look to spark food sales with innovative products.

Battered and partially fried before being frozen, the Twinkies need to be finished for a short time in the oven, toaster oven or frying pan. They'll cost $4.76 for a box of seven and for the first three months are available only at Wal-Mart.

It has a "retro cool factor," says Ellen Copaken, Hostess' vice president of marketing. "It plays into the comfort food trend. And it's fun."

The Twinkie, long one of Hostess' largest sellers, is a bigger business now than even right before the company filed for bankruptcy in 2012, Copaken said. Executives had considered developing a deep-fried version, like those seen at local fairs, but put the plans on hold until Wal-Mart approached them last summer.

For Wal-Mart, which gets more than half of its sales from food and other groceries, the partnership is part of a strategy of working closely with suppliers to come up with new twists on existing foods or developing new ones, and getting them to the shelves faster. The company opened a food lab in June for that teamwork, a process that can cut costs and shave several months off a product launch, says Charles Redfield, executive vice president of food at Wal-Mart.

The food lab at the company's Bentonville, Arkansas, headquarters has 10 test kitchens and space to accommodate 12 individual taste tests at a time. Specific feedback from customers gathered there gets shared with suppliers to determine if an item needs more work. Being tested now: new flavors for its store brand sparkling water, frozen stuffed doughnut bites, and vacuum-packed Paleo meals.

"Most of our customers have a desire to eat healthier," Redfield said. "But at the end of the day, it has to taste good. Great healthy things that don't taste good don't do well."

Hostess has given a nod to the healthier options, reformulating its Mini Muffins with fruit, no artificial flavors and more whole grains. But the Deep Fried Twinkies and candy-topped brownies are among several new treats it hopes will excite shoppers.

At nine grams of fat and 220 calories, the vanilla flavor of the Deep Fried Twinkies compares to 4 grams of fat and 130 calories in a regular Twinkie. One expert says Americans still like a sugar fix, typically at the end of the day.

"We are trying to cut down on foods that are higher in sugar content," said Darren Seifer, a food industry analyst at market research firm NPD Group Inc. "But there is still room for indulgence."

Twinkies have been around since 1930, but the company's financial woes had put their future in doubt. Hostess products came back after the company was bought in 2013 for $410 million.

U.K. expat Christopher Sell added a deep-fried Twinkie to the menu at his Chip Shop restaurant in Brooklyn about 15 years ago, and the idea took off at state fairs. Hot-dog chain Papaya King in New York sells them for $3 each, excluding tax, and they're faring better than the deep-fried Oreos.

"We wanted to do a sweet and savory combo," Papaya chain president Wayne Rosenbaum said. "The Twinkies seem to be the most popular."

Hostess hoped to recreate the state fair staple, but it wasn't easy. The company tested prototypes at its Kansas City, Missouri, headquarters, and considered making it a restaurant product. Then Wal-Mart approached them. Executives at Hostess, which also has an office near Wal-Mart's headquarters in Arkansas, came to Wal-Mart, and cooked in the kitchen with them.

"The original samples were pretty good," said John Pearson, Wal-Mart's senior buyer for frozen foods. "But the batter was a little lumpy."

Hostess wanted a baking time of less than 10 minutes — with the right amount of oozing filling and a crispy texture.

Then there was the name. Hostess considered Carnival Twinkie, Boardwalk Twinkie and the Light and Crispy Twinkie. But Pearson and other Wal-Mart executives encouraged Hostess to call them what they are: Deep Fried Twinkies.

When baked, the Deep Fried Twinkies do come out a bit crispy, but aren't an exact match for the ones at fairs or restaurants.

"It's really good. It's delicious," said construction worker Nick Severino of Yonkers, New York, who tasted a vanilla cream version.

Page Bondor, a Manhattan resident, wasn't excited after trying it. "I like the original Twinkie," she said. "This is a step too far."

What sets the Hostess version apart, Copaken says, is the ease. "We eliminated the hard work and prep," she said.

Inside Wal-Mart's Food Lab

Wal-Mart opened a 12,000-square-foot culinary and innovation center at its headquarters in June as a place where the nation's largest food retailer can work with major suppliers to come up with new food ideas, and develop ideas on its own to bolster its store-brand selection.

Here's a peek at the food lab:

WHAT IT IS: The center has 10 test kitchens including a studio-style chef's kitchen and replicas of the bakery and deli kitchens found in most of its stores. It has stoves, ovens and microwaves so the staff can cook the same ways customers do at home. There's also a sensory lab where Wal-Mart can collect feedback from customers and employees, who answer questions about the texture, saltiness or sweetness of a food or beverage. The facility follows a similar lab at the company's Sam's Club headquarters, which opened a few years ago.

WHY IT MATTERS: Wal-Mart derives 56 percent of its total sales from food and other grocery items. The company also accounts for about 25 percent of the overall U.S. grocery business. Since customers might shop for food several times a week, it's critical to get food items right to build loyalty.

In the past, Wal-Mart had tested products at kitchens throughout its headquarters, but that effort was limited and the feedback it provided was fairly general. Now, Wal-Mart gets specific feedback from customers that it can share with suppliers to help decide if an item is ready or needs changes. That collaboration saves money and cuts several months off a product launch, which can last a year from idea to an item landing on store shelves.

WHAT'S NEXT: Wal-Mart is testing frozen stuffed doughnut bites as well as new flavors for its Clear American Ice store brand sparkling water and Paleo meals that are vacuum-packed. The Clear American Ice pineapple-orange flavor arrives in stores in September. The Paleo meals and the doughnut bites will be in the stores in October.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


Sale of Former Remington College Exceeds $4.3 Million (Real Deals)

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A 35,000-SF building in west Little Rock tipped the scales at $4.38 million.

EAI Realty Inc., an affiliate of Education America Inc. of Heathrow, Florida, sold the former home of Remington College at 19 Remington Drive.

The buyers are Remington Partners LLC (53.7 percent) and Burlingame Investments Holdings LLC (7.1 percent), both led by Isaac Smith; Tulsa May’s LLC (33.6 percent), led by Kevin Huchingson; and Once LLC (5.6 percent), led by Mark Bentley.

The deal is financed with a seven year loan of $3.1 million from IberiaBank of Lafayette, Louisiana. The 4.6-acre location was purchased for $825,000 in December 2002 from Boen Enterprises LLC, led by Leonard Boen.

Corporate Purchase

A 21,732-SF office building in west Little Rock weighed in at $2.04 million.

Checkk Properties LLC of Texarkana, Texas, bought the Corporate One Building at 10025 W. Markham St.

The sellers are John and Karen Flake and Stephanie Kelley, $1.39 million; Kelley Commercial Realty LLC, led by Hank Kelley, $586,000; and the Flake Family Trust, $64,826.

The 1.84-acre development previously was tied to a February 2002 mortgage of $685,000 held by Delta Trust & Bank of Little Rock.

Ownership of the project shifted in a $950,000 transaction with Corporate One Partnership in February 2000.

The original investment group was composed of James Summerlin and Vernice Wright, 41.9 percent; Pat Morrison, 18.7 percent; Gary Dean, 17.5 percent; Jim May III and Lewis May, 10 percent; John Flake, 7.5 percent; and Wingfield Martin, 4.4 percent.

Charter Acquisition

The future home of an elementary and middle school in east Little Rock rang up a $1.7 million transaction. EStem Public Charter Schools Inc., led by John Bacon, acquired the 111,096-SF warehouse at 400 Shall Ave.

The seller is Central Arkansas Area Agency on Aging Inc., led by Luke Mattingly.

The agency bought the 3.7-acre development for $1.98 million in March 2003 from Walk-Winn Plastic Co., led by Tommy Walker.

Archild Buy

A 40,143-SF facility in west Little Rock changed hands in an $880,000 sale.

Archild Inc., led by Marti Dush, purchased the 7723 Col. Glenn Road project from the namesake living trusts of Atley G. Davis and Betty Davis.

The Davis family has owned the 4.02-acre property for more than 60 years.

KFC Transaction

A 2,400-SF KFC in west Little Rock drew an $839,000 transaction.

Tabbassum Mumtaz bought the 100 Markham Park Drive project from Markham Park LLC, led by Graham Smith.

The deal is funded with a seven-year loan of $587,300 from Little Rock’s Bank of the Ozarks.

The 0.68-acre development previously was linked with a May 2015 mortgage of $484,000 held by the bank.

Markham Park purchased the property for $650,000 in February 2013 from the H.C. Schmieding Produce Co. Inc. Profit Sharing Trust and Schmieding Foundation Inc.

Sologne Manor

A 6,793-SF home in the Sologne Circle neighborhood of west Little Rock’s Chenal Valley development sold for $1.03 million.

Srinivasan Ramaswamy and Roopa Ram acquired the house from Bennett and Jacqueline Lebow.

The deal is backed with a 15-year loan of $820,000 from One Bank & Trust of Little Rock.

The Lebows bought the residence for $1 million in August 2008 from Marian James.

Shady Valley Abode I

A 6,835-SF home in North Little Rock’s Shady Valley neighborhood is under new ownership after an $899,999 deal.

Jeffrey and Leslie Smith purchased the house from Gregory and Delinda Harrington.

The residence previously was tied to an August 2015 mortgage of $787,000 held by IberiaBank.

The Harringtons acquired the location for $66,000 in January 2005 from Alvin and Anne Eanes.

Shady Valley Abode II

A 6,456-SF home in North Little Rock’s Shady Valley neighborhood rang up a $660,000 sale.

The Morden Revocable Trust, led by Billy and Linda Morden, bought the house from Mike and Janet Huckabee.

The residence previously was linked with a December 2010 mortgage of $299,800 held by Primary Residential Mortgage Inc. of Salt Lake City.

The Huckabees purchased the property for $525,000 in July 2006 from Jerry and Billie Neal.

Oaks Residence

A 3,300-SF home in The Oaks neighborhood of west Little Rock’s Chenal Valley development changed hands in a $635,000 deal.

Robert and Debra Fehlman acquired the house from Rick and Jill Willey.

The deal is financed with a 15-year loan of $345,000 from Simmons Bank of Pine Bluff.

The Willeys bought the residence for $485,000 in May 2001.

The seller was Lewis Home Builders Inc., led by Jon Lewis.

Heights Home

A 2,814-SF home near the Country Club of Little Rock drew a $555,000 transaction.

KJR Holdings LLC, led by Spencer and Molly Keith, purchased the house from Steven and Rhonda Napper.

The residence previously was tied to a January 2015 mortgage of $375,000 held by First Financial Bank of El Dorado.

The Nappers acquired the location for $125,000 in January 2002 from the Norma C. Thompson Revocable Living Trust.

Miramar House

A 3,918-SF home in the Miramar Place neighborhood of west Little Rock’s Chenal Valley development sold for $525,000.

Adam and Alicia Fernandez bought the house from Michael and Adena Jenkins.

The deal is funded with a 30-year loan of $417,000 from Simmons Bank. The residence previously was linked with a May 2014 mortgage of $175,000 held by First Federal Bank of Harrison.

The Jenkins family purchased the property for $525,000 more than two years ago from Arbor Construction LLC, led by Mike Moran.

Estates Sale

A 4,182-SF home in the Maumelle Valley Estates neighborhood is under new ownership after a $517,300 deal.

Jill and Christopher Hughes acquired the house from Greg and Miranda Simmons.

The deal is backed with a 30-year loan of $413,840 and a five-year loan of $77,595 from IberiaBank. The residence previously was tied to October 2013 mortgages of $417,000 and $43,000 held by the bank.

The Simmons family bought the location for $72,000 in January 2013 from Maumelle Valley LLC, led by Gilbert Carpenter.

Hillcrest Residence

A 2,918-SF home in Little Rock’s Hillcrest neighborhood rang up a $505,000 sale.

Christopher and Madina Lawlis purchased the house from RTR Investments LLC, led by Matthew Lewis.

The deal is financed with a 10-year loan of $506,096 from Simmons Bank. The residence previously was linked with a July 2015 mortgage of $375,000 held by Malvern National Bank.

RTR acquired the property 13 months ago for $255,000 from Susanne Roberts.

Innovative Construction

Construction of a medical office building in west Little Rock is backed with a $5.1 million funding agreement.

Innovative Real Estate LLC, led by Majid Saleem, obtained the 11-year loan from Bank of America in Charlotte, North Carolina.

The limited liability company bought the 2.53-acre site at 11220 Executive Center Drive for $500,000 in January from the Arkansas Realtors Association, led by Mikki Bass.

Unemployment Rates in Arkansas Cities Vary Widely

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Unemployment rates rose slightly in Arkansas metro areas in June, but rates are still lower than a year ago, notes Michael Pakko, chief economist at the Institute for Economic Advancement at the University of Arkansas at Little Rock.

The U.S. Bureau of Labor Statistics reported earlier this month that unemployment rates were lower than a year earlier in 285 of the nation’s 387 metropolitan areas, “and all eight metro areas that cover parts of Arkansas were in that total,” Pakko said on his Arkansas Economist blog.

Year-over-year changes ranged from a decline of 0.7 percentage point in Fort Smith and Texarkana to a drop of 1.6 percentage points in Pine Bluff.

The chart “Payroll Employment in Arkansas MSA” illustrates the trends of Arkansas’ metro areas since the 2008-09 recession. “Fayetteville, Jonesboro and Little Rock are the only three metro areas to have higher employment now than at the end of 2007,” Pakko said.

Unemployment Rates in Arkansas MSAs - June 2016
(Not Seasonally Adjusted)

  June 2015 June 2016 Change
Fayetteville - Springdale - Rogers 4.1 3.1 -1.0
Fort Smith 5.7 5.0 -0.7
Hot Springs 5.8 4.5 -1.3
Jonesboro 5.1 3.7 -1.4
Little Rock - North Little Rock - Conway 4.8 3.7 -1.1
Memphis 6.9 5.7 -1.2
Pine Bluff 7.3 5.7 -1.6
Texarkana 5.2 4.5 -0.7
Arkansas statewide 5.5 4.2 -1.3

Power and Pain of Consensus (Barry Goldberg On Leadership)

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I trained for facilitation work in the lineage of Sam Kaner, the author of “Facilitator’s Guide to Participatory Decision-Making.” Kaner’s company, Community at Work, stresses consensus in all decisions.

Both conventional wisdom and the company name might indicate that Kaner’s work and research are aimed at the nonprofit sector. But his company has served the likes of Charles Schwab, Hewlett-Packard, PricewaterhouseCoopers and Visa. Facilitators trained in Kaner’s methods, myself included, have worked in business entities large and small on every continent on the globe. While his is a technical methodology for professional facilitators, all leadership requires some capacity to facilitate groups and teams to get work done.

Mainstream, action-oriented leadership thinkers tend to hate the idea of consensus, opting instead for rapid-fire, quick-decision meetings. The efficiency of pushing quickly for a clear path forward is hard to resist; however, it often steps over or forces underground the kind of resistance that will kill a new idea or initiative — but usually not until most of the time and money are spent.

Consensus is really hard and it means everyone has to agree, which is all but impossible. Striving for consensus is, however, a worthwhile and high-value investment in time. The discussions needed for those who are doubtful or uncomfortable with a potential strategy or new direction reveal critical information that might otherwise not be taken into account. Taking the time in the ideation and planning stages allows valid concern and even open opposition to have a voice. So why, if I am clear about a project or strategy that I want to get off the ground, would I want to provide time and attention to those I may view as worrywarts and naysayers? Here are my top five reasons:

♦ Risk mitigation. Time spent fully developing the list of things that could kill a project is foundational to building a risk mitigation plan.

♦ Stakeholder management. People who feel they have no voice are likely to become either passive or overtly oppositional, neither of which moves the initiative forward.

♦ Conversion opportunities. While you cannot count on it, the folks who most strongly oppose an initiative can become its staunchest supporters — if they feel their concerns have been heard and addressed.

♦ Shine a light. The conversations are going to happen. Better to have them in the meetings where they can be vetted and handled rather than in the hallway “meeting after the meeting” that consists of only the naysayers.

♦ Better decisions. When it is time for the leader to make a decision, she will have heard all points of view and have a better idea of what will be needed to bring the strategy about or the project over the line.

Pat Lencioni describes this process in his landmark book “The Five Dysfunctions of a Team.” During the team offsite, the new CEO exclaims clearly that “consensus is horrible.” Noting that if everyone does not agree at the beginning, consensus devolves into a never-ending attempt to please everyone, something that (assuming it is even possible) usually waters down any project until it is useless.

And he is right. If everyone were fully onboard, there would be no need for the project or the meeting. Consensus is about addressing the concerns on the team to a point that they are manageable and those involved can fully commit, despite reservations and concerns. As Lencioni puts it, “disagree and commit.” This is a critical distinction. Consensus is not about getting full agreement on every point in a plan. It is about fully engaging and, where possible, addressing the concerns of those whose commitment is required so that the team can create a sustainable and powerful commitment.

Whether the issue at hand is a major project, a new strategic direction, a simple process change or a cultural decision that impacts the entire team, stepping over the open debate invites dissenting points of view, and looking for accommodation will send naysayers underground and out into the hallway to be heard. And when it comes to organizational change, resistance is anything but futile.


I. Barry Goldberg is a credentialed executive coach and Vistage chair, hosting peer advisory groups for owners and senior executives in central Arkansas. You can reach him at Barry.Goldberg@EntelechyPartners.com.

New Public Company Debuts in State: Ecoark

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The merger in March of Ecoark Inc. of Rogers with Magnolia Solar Corp. of Woburn, Massachusetts, resulted in a new name on the roster of publicly traded companies in Arkansas: Ecoark Holdings Inc. of Rogers.

Ecoark Holdings is no Wal-Mart or Tyson Foods, of course. Magnolia Solar, which had been publicly traded since 2009, lost $566,000 in 2015 on revenue of $160,000. Ecoark Inc. was privately owned, but a proxy statement filed in March ahead of the merger revealed that it lost almost $10.5 million last year on revenue of $7.8 million.

Ecoark Holdings has submitted an application to be listed on the Nasdaq Capital Market, which Chairman and CEO Randy May said would provide the company more visibility and make its stock available to more investors.

The combined company has 97 employees and provides its clients with environmentally friendly technologies and services through four subsidiaries:

 Magnolia Solar Inc., with locations in Massachusetts and New York, which uses nanotechnology to increase the efficiency of existing solar panels.

 Intelleflex of San Jose, California, which has a regional office in Rogers. It markets a cloud-based data collection platform designed to protect food quality by offering predictive analytics and real-time feedback as products are transported.

 Eco3d of Phoenix, which provides plans that show current conditions and creates accurate two-dimensional and three-dimensional documentation.

 Pioneer Products of Rogers, which makes new products from retailers’ waste, including recycled resin trash cans sold at Walmart. Ecoark Holdings recently acquired Sable Polymer Solutions of Acworth, Georgia, and merged it into Pioneer Products.

“In 2013, Ecoark acquired Intelleflex, and since that time the company has invested significantly in research and development to build out the only end-to-end solution for the cold chain. This R&D resulted in an expansion of the company’s IP portfolio to over 60 patents in the US. This technology is now ready for deployment at the retail level,” May told Arkansas Business in an email.

The merger of Ecoark and Magnolia Solar was first announced in January, approved by stockholders on March 18 and closed on March 24. A 1-for-250 reverse split of Magnolia Solar stock resulted in shares that were trading at about $21 last week.

For the quarter that ended March 31, the new Ecoark Holdings reported revenue of $1.96 million compared with $2.22 million for the same period last year. The company attributed the dip in sales to lower shipments of recycled plastic trash cans by Pioneer caused by a difference in the timing of shipments at the end of 2015 versus 2014.

The bottom line for the quarter was a net loss of $2.22 million or 8 cents per share. Magnolia Solar lost nearly $3 million, or 13 cents per share, in the same quarter of 2015, and Ecoark attributed the improvement to cost control.

In the quarterly filing, Ecoark Holdings said that it had experienced “typical start-up costs and losses in operations.”

The company said in the document that its ability to raise additional capital is unknown, and significant additional capital, according to the proxy, is on the wish list.

Investors owning more than 5 percent of Ecoark Holdings, according to a July 6 SEC filing, are May, the chairman and CEO; Yash Puri, the chief financial officer; and directors Greg Landis, Gary Metzger, John Cahill, Terrence Matthews and Charles Rateliff.

In a news release announcing completion of the Ecoark-Magnolia Solar merger that birthed Ecoark Holdings, May called the deal an “important milestone,” and credited Magnolia Solar and its CEO, Ashok Sood, with helping the company reach an interim goal.

“When we founded Ecoark in 2011, we set a lofty goal of becoming a publicly traded company within five years. Dr. Sood, and the team at Magnolia Solar made this goal a reality. As the merger-related activities are now behind us, we look forward to working with Dr. Sood and his team as we continue to address the significant, unmet opportunities in sustainability through our intelligent technologies.”

Sood is now president of Ecoark.

Butcher & Deli To Become Bentonville Butcher & Pint

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You might remember Travis McConnell, the chef who opened Butcher & Public in the old Argenta Market on Main Street in North Little Rock in 2014. McConnell shared space with Donnie Ferneau’s Good Food by Ferneau for a while, only to leave a few months later and join forces with Arkansas Fresh Café in Bryant.

McConnell, who’d also worked at Little Rock’s Capital Bar & Grill as a sous chef, recently landed in Bentonville, at Bentonville Butcher & Deli at 1201 S. Walton Blvd.

Now, a mixed-drink permit application with the state and social media postings indicate that Bentonville Butcher & Deli is morphing into Bentonville Butcher & Pint, “a restaurant, bar and butcher concept focused on fresh, local meats, beer and cuisine.”

McConnell was out of town at press time and unable to fill in the details. But the Arkansas secretary of state’s office showed April Seggebruch as the registered agent and an officer of Good Meats LLC, dba Bentonville Butcher & Deli, Bentonville Butcher & Pint and Butcher & Pint. Seggebruch, a former Lady Razorback in basketball, is co-founder of Movista, a Bentonville software company.

Seggebruch has been on Arkansas Business’ radar for some time. She was a member of MerchantEyes LLC, a graduate business plan team from the University of Arkansas at Fayetteville, which took first place in the first Tri-State Donald W. Reynolds Governor’s Cup competition in Las Vegas, held in 2008.

Riverdale 10 Owner Plans Movie Meals in Spa City

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Matt Smith, owner of the Riverdale 10 movie theater at 2600 Cantrell Road in Little Rock, wants readers to know that his theater also offers patrons the option of dining while seated in comfy leather recliners — much like Movie Tavern, which is coming to Little Rock next year and which Arkansas Business wrote about last week.

In fact, Smith’s formula in Little Rock, which includes 10 screens, the sale of beer and wine and reserved seating, has been so successful he’s planning to introduce it at his Hot Springs Mall Cinema next month.

Smith will be installing electric leather recliners there (complete with tables), along with “the exact same food menu” that features cookies, nachos, hot dogs, pizza and Loblolly ice cream all the way up to cheeseburgers, chicken wings and fries and chicken strips and fries, as well as the usual candy and popcorn. Oh, and Arkansas craft beers, he added.

“We should have that all up and running — the food and the seats — in our current Hot Springs location by the end of September,” he said.

Smith doesn’t have a permit to sell beer and wine there and doesn’t know if he’ll seek one.

The theater currently has five screens, but farther down the road, Smith would like to add five or six more screens.

“Dinner and a movie will be possible at Hot Springs just like it is at Riverdale right now,” he said.

Smith is “real happy” with his business at Riverdale. “The community support, the support from the neighborhood has been wonderful at Riverdale.”

Smith noted that he’s adding kitchen equipment to the 45,000-SF Riverdale location, which will allow more full-meal food options: appetizers, deserts, entrees, etc.

Riverdale, in addition to first-run movies, also screens independent and foreign films as well as documentaries, classics and retro movies “that no one else is offering,” he said.

Riverdale 10 also offers a monthly classic movie night with 96.5 FM’s Dave Elswick and the monthly Arkansas Times Film Series and partners with Diamond Bear Brewing Co. of North Little Rock on a monthly movie.

“We’re extremely independent and extremely local,” Smith said.

Millions of Dollars

The Hot Springs investment is “millions of dollars,” Smith said. “It’s about a million dollars a room to go into the movie theater business.”

“By the time you build the room, you put in the screen, you put in the drapes, you put in the speakers, digital projectors, digital sound, you put in the seating, carpet, lighting — I don’t think people understand how capital-intensive the business is.”

Smith, who employs more than 100 people, also has theaters in Searcy and Cabot, which have traditional seating.

“After the Hot Springs project, I may look at recliners in Cabot and Searcy.”

LR's Midtown Center Leads List of Recent Seven-Digit Deals

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A retail project in Little Rock, a grocery store in Maumelle, a fast-food outlet in west Little Rock, two Little Rock homes and a pair of residential properties involved in an intrafamily swap compose our magnificent seven real estate transactions this week.

 Leek Farms LLC, led by Lynn Leek, bought the 105 N. Rodney Parham Road project that housed Mid-Town Antique Mall, Light Innovations and Tile Shop. The deal includes the adjoining Bank of the Ozarks branch at 101 N. Rodney Parham.

Price: $6.2 million.

Sellers: Mid-Towne Center LLC, led by Sharon Mayer, 50 percent; and Nicholas Mayer Jr. and Nancy Mayer Sheppard, 25 percent each.

 Maumelle WMT LLC, led by Isaac Smith, purchased the Wal-Mart Neighborhood Market at 117 Audubon Drive for $2.2 million.

Seller: Bentonville’s Wal-Mart Real Estate Business Trust.

 Sea Salt LLC of Memphis acquired the Wendy’s at 17716 Cantrell Road for $2.1 million. Seller: Fourjay LLC, led by John Shanks

 John and Amber Meadors sold their 4,667-SF Edgehill home to Donald and Lucinda Phelps for $1.8 million.

 David Snowden Jr. and his wife, Terri, traded their 6,272-SF home near the Country Club of Little Rock for a 5,088-SF home and 20-acre spread in west Little Rock owned by David Snowden Sr. and his wife, Judith.

Value of the exchange? $1.4 million.

 Brett and Amanda Bennefield sold their 6,985-SF Valley Falls Estates home to Matthew and Patricia Jones for $1.2 million.


Pinnacle Foods to Add New Line, 25 Jobs at Fayetteville Site

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Pinnacle Foods Inc. of Parsippany-Troy Hills, New Jersey, on Thursday announced plans to expand its food manufacturing in Fayetteville by adding a new brand line called EVOL.

The publicly traded company with more than $2.5billion in annual revenue also said it would add 25 jobs to that location over the next two years.

Pinnacle Foods qualified for the Arkansas Economic Development Commission's Advantage Arkansas program, which provides a state income tax credit of 1 percent of total payroll; InvestArk, a sales and use tax credit program available to businesses established in Arkansas for two years or longer that invest $5 million or more at a single location for new construction, expansion or modernization; and a $200,000 grant from the Governor's Quick Action Closing Fund.

According to a news release, Pinnacle will upgrade existing manufacturing capabilities to accommodate the new line, which has products ranging from single-serve meals to gluten-free macaroni and cheese that contain cage-free eggs, no antibiotics, no artificials and no GMOs.

The Fayetteville facility, which is 360,000-SF on 47 acres and 420 full-time employees, already produces Hungry Man meals, Aunt Jemima breakfasts and other frozen meals.

Pinnacle Foods is the largest private employer in Fayetteville, according to the Arkansas Economic Development Commission. It has a sales office in Bentonville.

Arkansas Unemployment Unchanged at 3.9 Percent

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Arkansas' seasonally adjusted unemployment rate was unchanged at 3.9 percent in July, according to a report Friday by the state Department of Workforce Services.

Arkansas' June unemployment rate was revised from 3.8 percent to 3.9 percent, the report said. The unemployment rate in July 2015 was 4.9 percent.

"Arkansas' jobless rate remained stable between June and July, mirroring the trend seen at the national level," Bureau of Labor Statistics Program Operations Manager Susan Price said. "Compared to July 2015, the unemployment rate is down one and three-tenths of a percentage point." 

The report shows the civilian labor force declined from June by 2,430 — the result of 2,700 fewer employed and 270 more unemployed Arkansans. The U.S. jobless rate was unchanged in July at 4.9 percent.

Since July 2015, Arkansas' civilian labor force has grown by more than 28,800 people, the report said.

Nonfarm payroll jobs in Arkansas declined by 16,700 in July compared to the previous month to total 1.2 million. Six major industry sectors decreased, more than offsetting gains in three sectors.

Seasonal losses occurred in local (10,600) and state (1,700) government, related to summer break at public schools. 

Jobs in trade, transportation and utilities declined by 2,300. A majority of the decrease was in retail trade (1,400), attributed to losses at various retail establishments.

Construction added 1,200 jobs, related to seasonal hiring and on-going large-scale projects.

Compared to July 2015, Arkansas' nonfarm payroll jobs increased by 21,300. Growth was reported in eight major industry sectors, while two decreased. 

Professional and business services added 9,100 jobs. Jobs in educational and health services rose by 6,600. Jobs in manufacturing declined by 1,300 and mining and logging lost 1,200 jobs, attributed to recent layoffs and closures. 

Holiday Inn Express Sale Checks In at $5.1 Million (Real Deals)

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A 69-room hotel in North Little Rock weighed in at $5.15 million. CDRN NLR LLC, led by Ishverbhai Govind, purchased the Holiday Inn Express at 4306 E. McCain Blvd.

The seller is Kilpatrick Hotels Two LLC, led by G.T. Kilpatrick. The deal is backed with a three-year loan of $4.4 million from Capital Bank of Little Rock.

The 1.5-acre development at 4306 E. McCain Blvd. previously was linked with a September 2014 mortgage of $4 million held by Progressive Bank of Monroe, Louisiana.

Kilpatrick bought the property for $6.8 million in June 2008 from McCain Hotels LLC, led by Rajesh Mehta.

MedExpress Purchase

A 4,667-SF medical clinic changed hands in a $2.3 million transaction.

Damart Holdings LLC of Camarillo, California, bought the MedExpress at 12300 Chenal Parkway from Quattro Little Rock LLC of Oakbrook, Illinois.

The deal is financed with a 10-year loan of $1.4 million from Bear State Bank of Little Rock.

Quattro purchased the 0.79-acre former TLC Daily Rental development for $875,000 in May 2015 from the Tyrell Family Living Trust, led by Becky and Brent Tyrell.

Dollar Deal

A 10,792-SF store in Jacksonville tipped the scales at $1.25 million.

Nick and Sharron Linner of Escondido, California, acquired the Dollar General at 2005 Old Military Road from Yellow Store Holdings LLC, led by Kevin Huchingson. The deal is funded with a 10-year loan of $300,000 from Wells Fargo Bank of Sioux Falls, South Dakota.

The 1.38-acre development previously helped secure a January 2012 mortgage of $3.12 million held by Metropolitan National Bank of Little Rock. Yellow Store bought the project for $1.1 million more than four years ago from PB General Holdings (Jacksonville) LLC, led by Leonard Boen.

Taco Transaction

A 2,082-SF Taco Bell in downtown North Little Rock served up an $890,000 sale. Grizzly Bear Investments LLC of Buena Park, California, purchased the 901 E. Broadway project from David Walser and Barbara Greenfield.

The 0.62-acre development previously was tied to a June 2013 mortgage of $500,000 held by First Security Bank of Searcy.

Walser and Greenfield acquired the property for $710,000 in September 2007 from CPCG KM AR 2 LLC of Los Angeles.

Dealership Land

A 6.31-acre commercial site in Sherwood is under new ownership after a $405,000 transaction.

North Little Rock Buick GMC Inc., led by Jamie Cobb, bought the land on Newman Drive behind Sam’s Club. The seller is KLBCG LLC, led by Karl Goshen.

The land was assembled in two deals with an investment group led by James Dietz and Hershel Bowman, $123,000 in January 2004; and RJR Lots LLC, led by Retha Jeanette Roberts, $167,000 in January 2013.

Other investors in the Dietz-Bowman group included Douglas W. Ashcraft; CBM Construction Co., led by Clark McGlothin; Dennis Jungmeyer; Hal Matthews; Rablaco LLC, led by Tom Cory; R-4 Enterprises Inc., led by Raymond Roberts; Seymour Real Estate LLC, led by Mike Seymour; Dow Worsham II; and Arkansas Precast Corp. of Jacksonville.

Rental Acquisition

An apartment building in the Hillcrest area of Little Rock rang up a $312,000 sale. C.A.M. AR LLC, led by Cody and Anna McGrath, acquired the 1117 Kavanaugh Blvd. project.

The seller is K-Ed LLC, led by John Simmons Jr. and Brenda Simmons. The deal is backed with a six-month loan of $395,250 from First Security Bank.

The 0.18-acre development was bought for $32,000 in October 1971 from S.G. Catlett Jr., and his wife, Betty.

Edgehill Manor

A 4,667-SF home in Little Rock’s Edgehill neighborhood weighed in at $1.8 million.

Donald and Lucinda Phelps purchased the house from John and Amber Meadors. The deal is financed with a one-year loan of $1.4 million from BancorpSouth Bank of Tupelo, Mississippi.

The residence previously secured a July 2005 mortgage of $2 million held by Pulaski Bank & Trust of Little Rock.

The Meadors family acquired the property for $2 million more than 11 years ago from Gene Cauley.

Rural Residence

A 4,525-SF home in west Pulaski County drew an $880,000 transaction.

Mark and Rhonda McMurray bought the house from Richard and Patricia Farnsworth. The nearly 5-acre spread previously was linked with a September 2011 mortgage of $417,000 held by Regions Bank of Birmingham, Alabama.

The Farnsworths purchased the property for $779,000 nearly five years ago from Michael and Carolyn Boshears.

Robinwood Abode

A 3,895-SF home in Little Rock’s Robinwood neighborhood sold for $640,000.

Cynthia and Becky Gillespie acquired the house from Thomas Buchanan III. The deal is funded with 30-year loans of $417,000 and $95,000 from Bank of Little Rock Mortgage Corp.

The residence previously was tied to a January 2014 mortgage of $479,600 held by Regions Bank.

The property was bought for $635,000 in November 2011 from David D. Henry.

Condo Exchange

A condominium swap in downtown Little Rock was valued at $550,000.

B. Finley Vinson Jr. and his wife, Nancy, traded a 1,563-SF unit on the 17th floor of the River Market Tower for a 2,185-SF unit on the 11th floor.

Their trading partner was RMT II LLC, led by Jimmy Moses and Rett Tucker.

RMT sold the 17th-floor condo at 315 Rock St. for $503,333 to Joseph Griffith. The Vinsons purchased the space for $446,000 in February 2014 from River Market Tower LLC, led by Moses and Tucker.

The development is linked with April 2014 mortgages of $18.6 million held by First Security Bank and $3.3 million held by Citizens Bank of Batesville.

The 1.2-acre site was acquired in October 2005 as part of a $5.08 million deal with the Arkansas Teacher Retirement System.

Courts House

A 4,222-SF home in The Courts neighborhood of west Little Rock’s Chenal Valley development changed hands in a $528,000 sale.

John and Noemi Ramsay bought the house from Lisa and Joel Poythress. The deal is backed with a 30-year loan of $501,600 from Bank of America in Charlotte, North Carolina.

The residence previously was tied to a May 2014 mortgage of $402,000 held by Cartus Home Loans LLC of Mount Laurel, New Jersey.

The Poythress family purchased the property for $502,500 more than two years ago from Donald Cottingame II and his wife, Tonya.

Multifamily Refinance

The owner of an 80-unit apartment project in North Little Rock landed a $6.3 million funding agreement.

Ridge Road Village Ltd. of Frisco, Texas, obtained the 40-year loan from Dwight Capital LLC of New York.

The 6.88-acre Ridge Road Village Apartments development at 4748 Ridge Road previously was linked with a March 2010 mortgage of $6.3 million held by Amerisphere Mortgage Financial LLC of Denver.

The limited partnership acquired the location for $440,418 in September 2004 from the North Little Rock School District.

Seven-Digit Construction

Infrastructure Upgrade    $1,773,000
USAble    
320 W. Capitol Ave., Little Rock
Baldwin & Shell, Little Rock

Renovation    $1,200,000
United Cerebral Palsy    
8121 Distribution Drive, Little Rock
East Harding Inc., Little Rock

OK Foods Promotes Pair in Fort Smith (Movers & Shakers)

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Amy Szadziewicz has been promoted to vice president of quality and food safety at OK Foods Inc. of Fort Smith, and Brent Glasgow has been promoted to vice president of operations. Both are previous employees of Pilgrim’s Pride Corp. of Greeley, Colorado.

Szadziewicz has more than 17 years of experience in the poultry industry, and Glasgow has worked in the industry for some 12 years in various states.


Dr. Marc Denton Stam has joined Sparks Cardiothoracic & Vascular Surgery as a physician for the Fort Smith area. Denton previously practiced cardiovascular surgery at St. Anthony’s Hospital in Denver.

Dr. Thanh Tan Le has also joined Sparks Clinic as a family practice physician at Alma Family Medical Clinic. Le graduated from the University of Arkansas for Medical Sciences in Little Rock and completed a family practice residency at UAMS Northeast in Jonesboro.


Megan Nichols has joined BancorpSouth in Fort Smith as a commercial loan officer.


See more of this week's Movers & Shakers, and submit your own announcement at ArkansasBusiness.com/Movers.

David's Burgers Sets Stake in Conway Near Future Sam's Club

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A David’s Burgers location and 10 houses provide a pair of $1.1 million transactions in Conway.

Anchor Realty Investments LLC, led by Alan Bubbus, bought a 1.6-acre site on Amity Road in front of the Sam’s under construction at the Lewis Crossing.

Seller: Lewis Crossing LLC, led by John Collett.

The eatery will be the second Conway location for David’s Burgers, No. 8 overall.

Meanwhile, about a mile to the north ...

GSI Properties LLC, led by Jeff Standridge, purchased a collection of 1,150-SF homes in The Falls  neighborhood.

Seller? Lucas-Brown Properties LLC, led by Scott Lucas and Jaime Brown.

Yellow Rocket Buys Rebsamen Property for New HQ

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You may have read that Yellow Rocket Concepts of Little Rock, the powerhouse restaurant group, has bought estate sale king Roy Dudley’s property at 1311 Rebsamen Park Road in Riverdale.

Dudley is vacating the site to consolidate his business at his Tanglewood location. “It’s a positive thing,” Dudley said.

Well, Whispers can tell you that Yellow Rocket — responsible for the Big Orange, Local Lime, Zaza and Heights Taco & Tamale restaurants as well as Lost Forty Brewing — paid $825,000 for the 2-acre property, which includes two buildings comprising 11,150 SF.

One of those buildings will be familiar to our mature readers as the Quonset hut that once housed the Wine Cellar. (Good times.)

A growing administrative staff is leading Yellow Rocket to move its corporate headquarters from the Lost Forty site at 501 Byrd St. in east Little Rock to the Riverdale quarters, said John Beachboard, a Yellow Rocket partner.

The company hasn’t opened any new restaurants in the past year, allowing it to focus on operations at its existing restaurants. “That’s meant adding a lot of really, really awesome people and new administrative-level jobs,” among them an HR executive and a social media director, Beachboard said.

The company will remodel the smaller, 5,000-SF building into offices and conference rooms, allowing the company to have its general manager meetings there.

The Quonset hut will serve as storage.

The move will also free up some space at Lost Forty, which will be used for both dry and cold storage along with more fermentation vessels, allowing Lost Forty to add to its lineup of beers.

Lost Forty produced 4,650 barrels of beer in 2015, its first full year of production, and expects to double that in 2016, Beachboard said, estimating it will produce 10,000 barrels this year.

Beachboard said Yellow Rocket now employs 470 workers full and part time.

Kroger Hopes New Shopping Service Clicks With Customers

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Some of our Little Rock readers probably have noticed all the activity at the Heights Kroger, the one at 1900 N. Polk St.

Teresa Dickerson of Kroger tells us that it’s all part of a $4 million remodel, including polished floors, upgraded décor, new check stands, a new customer service/guest care area, relocation of the produce area, relocation of the deli/bakery and all new refrigerated cases throughout the store.

It’s a logical time for the remodel with the departure of Silvek’s Bakery, which closed earlier this year.

The remodel is scheduled to be finished by spring 2017. Corco Construction of Little Rock is the contractor.

And while we had the Kroger folks on the phone, we asked about the company’s ClickList program, which allows shoppers to place orders online, choose a pickup time and Kroger store location and gather their groceries at the ClickList drive-through. It’s currently available at the Kroger at 14000 Cantrell in Little Rock and at 6929 JFK Blvd. in North Little Rock.

Jeff Evans, e-commerce manager for Kroger’s Delta Division, in which Arkansas is located, said that the ClickList program at the two stores had been “extremely well-received by our customers,” though he couldn’t immediately provide figures. The program starts small and “then grows exponentially,” Evans said. Available in Memphis for 12 weeks now, it’s growing every day, he said.

The most vocal ClickList users so far have been mothers with children, Evans said. “The comments have been, ‘It’s so nice to be able to come to Kroger and do all of my shopping in five minutes instead of going inside the store with my two children and spending hours.’”

Asked about the highly personal task of picking produce, Evans said Kroger trains its staff to choose the best, “no scratches, no bruises, no dents.”

The first three uses of ClickList are free; the service costs $4.95 per use after that.

The next stores in Arkansas rolling out ClickList are in Maumelle, the Kroger on Chenal, the Kroger Conway at 855 Salem and then the Kroger in Hot Springs. Kroger is introducing ClickList in one store in Arkansas per week.


Tacos 4 Life to Open Restaurant in Little Rock

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Tacos 4 Life plans to open its first location in Little Rock early next year, on an out-lot at Shackleford Crossing Shopping Center, the real estate development company Haag Brown Commercial announced on Friday.

It will be the fourth restaurant for the mini-chain, based in Conway and owned by Austin Samuelson and his wife, Ashton. There are currently two Tacos 4 Life restaurants in Conway and one in Fayetteville.

"We are growing, and excited to be opening a location in Little Rock which is a tremendous milestone for our young company," Austin Samuelson said in a news release from Haag Brown, which is headquartered in Jonesboro.

The stand-alone restaurant fronts South Shackleford Road, just east of Interstate 430, "creating massive exposure for the site," the news release said. It will occupy a 1-acre lot between the Longhorn Steakhouse and the Boomerang Carwash.

Hank Kelley and Eric Varner of Flake & Kelley Commercial of Little Rock represented the seller, Shackleford Crossing Investors LLC.

The Tacos 4 Life restaurants donate 22 cents toward feeding a child for every meal purchased at the restaurants. That 22 cents, which goes to the nonprofit Feed My Starving Children, is the cost of a meal for a malnourished child.

"We've assisted Tacos 4 Life in creating a vigorous development plan and Little Rock was the most logical place to start," said Joshua Brown, a principal in Haag Brown. "It is in the heart of Arkansas and will provide an anchor to branch out from."

"Our main focus as a restaurant is to feed hungry children by providing customers with made-from-scratch amazing food," said Ashton Samuelson. "Opening another location will allow us to build relationships in a new community and raise even more meals for hungry children."

Austin and Ashton Samuelson were recognized in the 2016 class of Arkansas Business' 40 Under 40. They told Arkansas Business that they want to have 20 company-owned stores by the end of 2020.

Madison Health & Rehab Draws $4M Transaction (Real Deals)

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A 140-bed nursing home in south Pulaski County tipped the scales at $4.05 million.

Dixon Realty LLC of Wood-Ridge, New Jersey, purchased the Madison Health & Rehabilitation project at 2821 W. Dixon Road from Trinik Holdings LLC, led by Saeed Niksefat.

The deal was backed as part of a $15.7 million loan overseen by Oxford Finance LLC of Alexandria, Virginia.

The 9.09-acre development previously was tied to a March 2012 mortgage of $3.2 million held by Farmers Bank & Trust of Magnolia.

The property was bought at a $2 million foreclosure sale in May 2008. The transaction followed a $5.7 million judgment two months earlier against Southwest Nursing Homes Inc., led by Stafford Kees.

Wendy’s Transaction

A 3,400-SF fast-food eatery in west Little Rock weighed in at $2.11 million.

Sea Salt LLC of Memphis acquired the Wendy’s at 17716 Cantrell Road from Fourjay LLC, led by John Shanks.

The deal is financed as part of a $4 million loan from Independent Bank of Memphis. The 1.19-acre development previously was linked with an August 2013 mortgage of $1.3 million held by the bank.

Fourjay purchased the location for $831,000 in February 2013 from Ranch Properties Inc., led by Ed Willis.

Saddle Creek Sale

A 6,992-SF office building in west Little Rock changed hands in a $940,000 sale.

Jason and Sarah Everett bought the 8221 Ranch Drive project from Saddle Creek Center LLC, led by Ed Willis.

The deal is funded with an $884,000 loan from First Security Bank of Searcy.

The 1.01-acre development previously helped secure a November 2010 mortgage of $2.3 million held by the bank. The land was acquired in August 1984 as part of a $2.15 million land deal with Johnson Land Co., led by Glenn H. Johnson.

Sustainable Purchase

A 7,980-SF industrial building in east Little Rock is under new ownership after a $450,000 deal.

Sustainable Properties LLC, led by Chris Adner and Matt Bell, purchased the Arrow Printing project at 1403 E. Sixth St. from the namesake trust of Jerry and Billy Neal.

The deal is backed with five-year loans of $382,500 and $270,300 from IberiaBank of Lafayette, Louisiana.

The Neals bought the 1.13-acre de-velopment for $240,000 in April 1997 from Darragh Investment Co., led by Thomas Darragh.

Restaurant Acquisition

A 2,481-SF eatery in southwest Little Rock rang up a $281,937 sale.

SCFRC-HW-G LLC of Princeton, New Jersey, acquired the Sam’s Southern Eatery at 6205 Baseline Road.

The seller is CNL APF Partners Ltd., an affiliate of GE Capital of Norwalk, Connecticut.

The 0.76-acre development was purchased for $541,000 in June 2003 from SHN Properties LLC of Nashville, Tennessee.

Sherwood Site

A 2.75-acre commercial site in Sherwood drew a $175,329 transaction.

CKP Commercial Properties LLC, led by Paul and Andrea Wilson, bought the land at the northwest corner of Highway 107 and Millers Park Drive. The seller is 107-Oakdale LLC, led by Byron McKimmey.

The deal is financed with a two-year loan of $169,000 from Arvest Bank of Fayetteville.

The land was acquired in February 2006 as part of an $8.3 million transaction with Metropolitan Land Co., representing the heirs of Justin Matthews and his Metropolitan Trust.

Estates Sale

A 6,985-SF home in west Little Rock’s Valley Falls Estates neighborhood tipped the scales at $1.25 million.

Matthew and Patricia Jones purchased the house from Brett and Amanda Bennefield.

The deal is funded with a 15-year loan of $417,000 from First Security Bank.

The property was bought for $1.35 million in October 2013 from the Gene Graves Revocable Trust.

Chenal Circle Abode I

A 6,605-SF home in the Chenal Circle neighborhood of west Little Rock sold for $955,000.

The Linda D. Gleason Revocable Trust acquired the house from Phillip and Robin Johnson.

The deal is backed with a five-year loan of $859,500 from Citizens Bank of Batesville.

The residence previously was tied to a $620,000 loan held by Summit Bank of Arkadelphia.

The Johnsons purchased the property for $760,000 in April 2014 from Bank of New York Mellon.

Hickory Creek House

A 4,915-SF home in west Little Rock’s Hickory Creek neighborhood changed hands in an $825,000 transaction.

Johnathan and Julia Goodwin bought the house from CBM Appraisals Inc., led by Christopher Maris.

The deal is financed with a 30-year loan of $742,500 from Stifel Bank & Trust of St. Louis. The residence previously was linked with a November 2014 mortgage of $690,000 held by Southern Bancorp Bank of Arkadelphia.

CBM acquired the property for $620,000 nearly two years ago from Calvin and Joyce Arnold.

Maisons Residence

A 6,099-SF home in The Maisons neighborhood of west Little Rock’s Chenal Valley development is under new ownership after a $695,000 sale.

Vijay and Grace Raja purchased the house from David and Tracy Rhodes.The deal is funded with a 25-year loan of $660,250 from Regions Bank of Birmingham, Alabama.

The residence previously was tied to an August 2007 mortgage of $250,000 held by the bank.

The Rhodes family bought the location for $72,000 in April 2004 from Deltic Timber Corp. of El Dorado.

Chenal Circle Abode II

A 5,807-SF home in the Chenal Circle neighborhood of west Little Rock rang up a $550,000 transaction.

Sara Hanna acquired the house from Debora Owens. The deal is backed with a 15-year loan of $412,500 from One Bank & Trust of Little Rock.

The residence previously was linked with a September 2006 mortgage of $550,000 held by Bank of England.

The property was purchased for $875,000 nearly 10 years ago from the Paul & Ann Weaver Family Trust.

Woodland’s Home

A 3,827-SF home in the Woodland’s Edge neighborhood of west Little Rock drew a $539,000 sale.

Matthew and Michelle Barden bought the house from Arbor Construction LLC, led by Michael Moran. The deal is financed with a 30-year loan of $417,001 from JPMorgan Chase Bank of Columbus, Ohio.

The residence previously was tied to a November 2015 mortgage of $409,600 held by Bear State Bank of Little Rock.

Arbor acquired the site for $76,000 nine months ago from Rocket Properties LLC, led by Lisenne Rockefeller and Ron Tyne.

Noah’s Mortgage

A 10,662-SF Noah’s event center in west Little Rock is securing a $3.1 million financial package.

NC Little Rock 642 LLC of Frisco, Texas, obtained the loan from EquiTrust Life Insurance Co. of Chicago.

The 1.7-acre site at 21 Rahling Circle was purchased for $859,636 in May 2014 from Deltic Timber Corp.

Motel Financing

The owner of a 55-room motel in North Little Rock landed a $2 million funding agreement.

Shree Mahalaxmi Corp. of Humble, Texas, got the three-year loan from Farmers & Merchants Bank of Stuttgart.

The 1.2-acre Simply Home Inn & Suites development at 110 E. Pershing Blvd. previously was linked with a May 2015 mortgage of $1.2 million held by the bank.

SMC bought the property for $1.3 million in March 2015 from KMP LLC, led by Kolila Patel.

Wal-Mart's McMillon Tops Compensation List of 100 Arkansas Public Company Execs

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The top man at the world’s largest company is again the highest-paid executive in Arkansas.

C. Douglas McMillon, CEO of Wal-Mart Stores Inc., has returned to the No. 1 spot on the annual list of executive compensation at publicly traded companies headquartered in the state. McMillon, whose total compensation topped $19.8 million in 2015, had been displaced on last year’s list by Gregory S. Foran, who benefited from stock awards granted when he was named executive vice president in 2014.

McMillon and Foran, No. 4 this year, are among six current Wal-Mart executives ranked among the 10 highest-paid executives on this week’s list. It ranks executives of 20 publicly traded companies headquartered in Arkansas by total compensation as disclosed in the companies’ most recent proxy statements. In most cases, the fiscal year ended Dec. 31, 2015; exceptions are Tyson Foods Inc. (Oct. 3, 2015); Dillard’s Inc. (Jan. 30); Wal-Mart (Jan. 31); Acxiom Corp. (March 31); and America’s Car-Mart Inc. (April 30).

Sandwiched between McMillon and Foran are:

  • Roger W. Jenkins, CEO of Murphy Oil Corp. of El Dorado, which recorded the lowest net income of the 20 companies last year — a $2.27 billion loss, thanks to the cratering of petroleum prices; and
  • Donnie Smith, CEO of Tyson Foods, the second-largest company in the state in terms of both revenue ($41.4 billion) and net income ($1.2 billion).

In a numerically satisfying coincidence, exactly 100 executives are ranked this year, up from 94 in 2015 mainly because the roster of public companies issuing regular proxy statements grew by one: Communications Sales & Leasing Inc. of Little Rock, which was spun off of Windstream Holdings Inc. in April 2015.

The total compensation for the 100 executives totaled $269.3 million, and the average of just under $2.7 million was down from $2.96 million last year.

Arkansas Business’ list breaks down total compensation into salary, the calculated value of stock and stock options awarded, bonuses or other cash performance pay, plus any other compensation reported to the U.S. Securities & Exchange Commission.

Only about 18 percent ($48.7 million) of the aggregate compensation came in the form of base salary, reflecting the preference for performance-based compensation of proxy advisory firms like Institutional Shareholder Services Inc. of New York.

Compensation totals ranged from McMillon’s $19.8 million to the $160,000 annualized base salary reported for Michelle Dillard, the ninth member of the founding family to join the payroll of the Little Rock retailer.

Most of the companies reveal the pay packages only of the top managers — what the SEC calls “named executive officers” — but Dillard’s Inc. also discloses the compensation of a sister (Denise Mahaffy) and children of CEO William Dillard II (William III) and President Alex Dillard (Alexandra, Annemarie and Michelle). Executive Vice Presidents Mike Dillard and Drue Matheny, brother and sister of William II and Alex Dillard, are also named executive officers.

Total compensation for the nine family members totaled $12.5 million last year. That was almost exactly the amount that John Tyson, chairman of Tyson Foods of Springdale, realized by exercising stock options last year.

Tyson also collected compensation of $8.75 million, placing him No. 7 on the list.

Cash realized by the exercise of stock options is reported on the list but is not included in the compensation total. Tyson was among only 29 of the 100 executives who exercised options during 2015; the other 28 divided up almost $48.6 million.

Kirk Thompson, chairman of J.B. Hunt Transport Inc. of Lowell, No. 30 on the list with total compensation of $2.27 million, realized the second-highest payday by exercising stock options: an additional $7.7 million.

Others in the top 10 are three executive vice presidents at Wal-Mart: No. 5 Neil M. Ashe, No. 6 David Cheesewright and No. 10 Rosalind G. Brewer, the highest-paid woman on the list. M. Brett Biggs, No. 8 with total compensation of $8.6 million in 2015, was promoted to chief financial officer upon the retirement in January of No. 23 Charles M. Holley Jr.

Noel M. White, senior group vice president for Tyson Foods, landed at No. 9.

10 Women

Among the 100 executives on the list are 10 women, starting with No. 10 Brewer, who heads Wal-Mart’s Sam’s Club division. Half of them are the Dillard women:

  • No. 42 Drue Matheny;
  • No. 73 Denise Mahaffy;
  • No. 93 Alexandra Dillard;
  • No. 96 Annemarie Dillard; and
  • No. 100 Michelle Dillard.

Michelle Dillard and No. 51 Kelli M. Hammock, a senior vice president at Murphy Oil Corp., are newcomers to the list. The other female executives are:

  • No. 31 Judy R. McReynolds, CEO of ArcBest Corp. of Fort Smith;
  • No. 34 Shelley Simpson, executive vice president of J.B. Hunt; and
  • No. 35 Mindy K. West, chief financial officer of Murphy USA Inc. of El Dorado, the retail spinoff of Murphy Oil.

New Names

Biggs, Hammock and Michelle Dillard were among 22 new names on this year’s list.

Communications Sales & Leasing, the Windstream spinoff, contributed three newbies:

  • No. 12 Kenny Gunderman, president and CEO;
  • No. 48 Mark A. Wallace, EVP and CFO; and
  • No. 55 Daniel L. Heard, SVP and general counsel.

Other newcomers are:

  • No. 27 John Eckart, CFO of Murphy Oil;
  • No. 29 Richard E. Erwin, president and general manager of audience solutions for Acxiom of Little Rock;
  • No. 36 Nicholas Hobbs, president of dedicated contract services for J.B. Hunt;
  • No. 44 Brian S. Davis, CFO of Home BancShares Inc. of Conway, parent company of Centennial Bank;
  • No. 46 Keith S. Caldwell, SVP and controller for Murphy Oil;
  • No. 47 Kevin Hester, chief lending officer for Home BancShares;
  • No. 49 S. Travis May, president and general manager of connectivity for Acxiom;
  • No. 63 Timothy D. Thorne, president of ArcBest’s Arkansas Best Freight division;
  • No. 64 Phillip R. Watts and No. 69 Chris B. Johnson, co-principal financial officers for Dillard’s;
  • No. 66 David M. Redmond, president of consumer and SMB for Windstream;
  • No. 75 David R. Cobb, VP and controller for ArcBest;
  • Mark McFatridge, CEO of Bear State Financial Inc., who came in at No. 82 because his total compensation of almost $620,000 represented only three months of work leading the holding company for Bear State Bank; and
  • No. 91 Christian C. Rhodes, VP and chief information officer for USA Truck Inc. of Van Buren.

Two others made their first and last appearances:

  • No. 58 Thomas M. Glaser, who served as interim president and CEO of USA Truck after the resignation of No. 37 John Simone in 2015. Glaser was succeeded by Randy Rogers in January, and Simone died of lung cancer in March.
  • No. 78 Joseph Henderson III, who resigned as VP of fuels for Murphy USA in December.

Already Gone

Holley, Glaser, Simone and Henderson aren’t the only names on the list who have since left their positions. Others who are already gone include:

  • No. 59 David L. Bartlett, who retired in January as president and chief banking officer for Simmons First National Corp. of Pine Bluff;
  • No. 77 Russell Overla, who resigned in September as executive vice president of Truckload Operations for USA Truck;
  • No. 90 Michael R. Weindel Jr., another USA Truck EVP who resigned in February;
  • No. 94 Kevin G. Fitzgerald, who retired as EVP and CFO for Murphy Oil Corp.; and
  • Randy Mayor, who came in at No. 99 after retiring as CFO for Home BancShares in July 2015.

Something to Chew On (Gwen Moritz Editor's Note)

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This column should come with a gross-out warning, but there’s a point here. Really.

A couple of weeks ago, a most astonishing story spread around local social media. I’m surprised it didn’t go worldwide. I believe it is true because some of the people involved are familiar to me, but I’m not going to name names just in case.

What happened was this:

A Little Rock woman and her friend went to a local movie theater to see “Star Trek Beyond,” and she ordered a $4.50 tub of popcorn. “I was so looking forward to the popcorn because I’d been living la vida low carb for 3 months. That popcorn was going in my mouth and I couldn’t WAIT,” she wrote on her blog.

But the second handful of popcorn contained a blob of what my elementary school pals called ABC gum — already been chewed. Someone else’s previously enjoyed chewing gum was in her popcorn and then in her mouth.

If I know Arkansas Business readers, you are torn between your sympathy for the customer and your sympathy for the manager whose employee let him down so completely. You know all too well the miserable mission of making right what someone you are paying screwed up so thoroughly.

Keep reading.

According to the woman’s story, the manager on duty assured her that employees weren’t allowed to chew gum and pointed her to a phone number to call for customer service. The customer said she just wanted her $4.50 back — a reasonable request — but the manager was not authorized to do that. (Place a mental sticky note here.)

The customer called the phone number and left her name and number on what she described as an answering machine from 1987. By that point, she no longer wanted just her $4.50 back; she wanted to be reimbursed for her movie ticket as well.

The customer service manager returned her call a couple of days later, but it’s not clear why. He didn’t apologize or offer any refund. He reiterated the company policy against chewing gum, as if that were proof that her story was not credible.

In the meantime, the customer had written a negative review on the theater’s Facebook page. (Another lesson point.)

The review complained about the gum and the handling of it by the manager on duty. It suggested that employees in their 20s might — gasp — violate the rule against chewing gum. Her two-star rating seems generous under the circumstances.

Now upper-level management gets involved, but if you think this is the point when the customer gets some satisfaction, you clearly didn’t see the story when it became a local viral sensation. Instead, the anonymous executive responded on Facebook by objecting to the characterization of the young employees (“We do not employ teens as other cinemas do,” he wrote, countering a complaint the customer had never made) and scolding the customer for failing to call the customer service number (although she had) and for having the nerve to “lash out” by posting a negative “revenge” review.

Yes, you read that right: The management response to a pretty egregious customer complaint escalated from unempowered to unconcerned to actively belligerent. And the worst of it played out in public — even after the theater manager removed the comments from Facebook and apparently discontinued the mechanism that allows the public to leave reviews — because the customer grabbed screenshots and posted them to her blog, which was widely shared on Facebook.

So, readers, are your sympathies still torn? You might wish I would identify the theater just so you can avoid it.

There are so many lessons here, starting with this: Employees, especially those who are supposedly management-level, must be authorized to fix problems. If a manager can’t refund $4.50 to a customer who complained of something truly disgusting, what is he managing? I recognize that there are unreasonable customers in this world — have you seen some of the comments left on my columns? — but when there are legitimate complaints, someone on site must be empowered to respond.

Responding days later is not the answer. And getting into a public dispute that makes your business look even less responsive is definitely not the answer. Finally, if you can’t stand the heat of a negative review, you shouldn’t invite reviews in the first place.

Who would believe that finding gum in her popcorn would be the least distasteful part of this woman’s experience?


Gwen Moritz is editor of Arkansas Business. Email her at GMoritz@ABPG.com.

Colonial Arms, Oakwood Place Apartments Sell For $5M In Fayetteville (NWA Real Deals)

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White Rock Investments LLC, led by Tim Brisiel of Fayetteville, paid $5 million for two apartment complexes.

Brisiel bought the Colonial Arms Apartments on North Leverett Avenue. Colonial Arms has 69 units and more than 55,000 SF. The acquisition included the 74-unit Oakwood Place Apartments on West Putnam Street.

Brisiel purchased the properties from Mid-America Management Associates, which is led by William Howell. First National Bank of Fort Smith assisted the purchase with a loan of $5.6 million.

Townhouses Sold

Brisiel, through his White Rock Investments LLC, sold 10 townhouse units to a California real estate investor.

Christ Koutroumbis and his wife, Polly, through their 1337 & 1343 N. Oakland LLC, paid $1.35 million for the units at 1337 N. Oakland Ave. The units have 8,976 SF.

Arvest Bank of Rogers assisted the purchase with a loan of $1.08 million.

Investors Buy 2 Hotels

The private investment group Waramaug LS Hotels of Boca Raton, Florida, bought the Holiday Inn Express & Suites in Bentonville and the Fairfield Inn & Suites in Springdale, paying $6.9 million for the Holiday Inn and $7 million for the Fairfield.

Waramaug bought the properties in partnership with Woodmont Lodging of Bethesda, Maryland. The partnership bought the Holiday Inn through its WW Holx Bentonville LLC and the Fairfield Inn through its WW FFI Springdale LLC.

Narendra Krushiker was the seller. Benefit Street Partners CRE Finance LLC of New York City assisted the purchases with a loan of $11.1 million.

Waramaug said the partners plan to renovate the 84-room Holiday Inn, located at 2205 SE Walton Blvd. The Fairfield Inn is a 74-room hotel at 1043 Reiff St.

Craig Nussbaum, the senior vice president of Waramaug, said the hotels were attractive because they were located in cities with major corporations; Bentonville is home to Wal-Mart and Springdale is home to Tyson Foods.

“Both markets also have a strong job creation forecast and consistent economic growth coupled with a limited new supply outlook,” Nussbaum said. “All of these factors provide excellent future growth potential for our top-line revenue.”

Simmons Buys Bank Branch

Simmons Bank of Pine Bluff bought a former First Federal Bank branch in Fayetteville for $1.7 million.

The branch, located at 2025 N. Crossover Road, was sold by the renamed Bear State Bank of Little Rock. The branch is 3,639 SF.

Red Robin Sale-Leaseback

The Red Robin restaurant in Fayetteville was sold by its corporate owner in a $2.35 million deal.

Red Robin International Inc. of Greenwood Village, Colorado, sold the restaurant at 695 E. Van Asche Drive to two California trusts. The Jane J. Vorhees Survivor Trust bought 57 percent, while the V Purn Vorhees Credit Shelter Trust bought the remaining 43 percent.

Both trusts are led by Jon Vorhees of Roseville, California.

Red Robin signed a 15-year lease with the new owners after the sale of the 6,606-SF restaurant.

Dentist Office Changes Hands

A California investor paid $2.35 million for the My Dentist office at 2868 W. Martin Luther King Jr. Blvd. in Fayetteville.

Yancey Properties of Santa Barbara, California, led by Thomas Yancey and Joel Orr, bought the property from Broadstone MD Oklahoma LLC, a subsidiary of Broadstone Real Estate of Rochester, New York.

Yancey Properties bought two adjacent lots, both one-third of an acre. One lot is the My Dentist parking lot, and the other undeveloped lot sits directly behind the 5,268-SF office building.

The property is located across MLK from the Walmart SuperCenter. Great Lakes Credit Union of Illinois assisted the purchase with a loan of $935,000.

Investment Firm Sold

The home of Greenwood & Gearhart, an investment advisory firm in Fayetteville, sold for $1.25 million.

The Firethorn Group LLC, led by Lindsey and George Gearhart, bought the 8,600-SF office at 26 E. Center St. Crickett LLC, led by M. Reed and Mary Ann Greenwood, was the seller.

Mary Ann Greenwood founded the company in 1982.

Legacy National Bank of Springdale assisted the purchase with a loan of $1 million.

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