Arkansas a Pulaski County Circuit Judge Rules in Favor of a Doctor Who Wants to Dispense Prescription Drugs from Her Business Office

THE STATE’S BUSINESS NEWS AUTHORITY. Pharmaceutical Controversy Arkansas A Pulaski County circuit judge rules in favor of a doctor who wants to dispense prescription drugs from her Business office. Turf war inevitable. [P9] UPDATED DAILY: ArkansasBusiness.com VOL. 29, NO. 46 NOVEMBER 12-18, 2012 $1.50

SPOTLIGHT: Investment Properties

Apartment Multi- Managers Face Crime, This Week’s Family Disrepair ‘The snowball effect’ Exec Q&A: and how to avoid it

Jeff Yates By Luke Jones Multiplies [email protected] Th e certifi ed leasing specialist and partner at Irwin Partners Apartments remain hot We’ve all heard it: “You shares some insights wouldn’t want to live there. It’s into the central Arkan- commodity in LR area, NWA dangerous.” Sometimes, it’s so sas commercial real dangerous that the government estate market. [P26] By George Waldon steps in. Management is fired. [email protected] Residents are evicted. Buildings are razed. Hundreds of new apartments have hit the Pulaski County How does a property get to market, and hundreds more are on the way. Favorable market this point, and what can land- The List [P17] conditions and available financing have kept the line of new lords do to prevent such a down- Largest Residential projects growing and moving. ward spiral? w Property Managers Lindsey Management of Fayetteville will expand its Jason Bolden, a real estate extensive Arkansas portfolio by 432 units when The Greens attorney and a former presi- Whispers [P3] at the Rock is built out. The company ranks as the largest dent of the Little Rock Landlord Familiar brand name residential property manager in the state, a first-time list on Association, said it’s a snow- will disappear in 2013 Page 17. ball’s path down a steep hill and Lindsey's $25 million development in North Little Rock's the good decisions need to hap- Counts Massie corridor is among the biggest under construc- pen at the top. tion. “There’s only one factor: bad management. Period,” Bolden APARTMENT MARKET CONTINUED ON PAGE 16 said. “If you had great management in place, those kinds of mistakes don’t happen.” Longtime Little Rock residents may remember “Sin City,” a group of apartments near Chicot Road that were a hive of violent crime in the 1980s and 1990s. In 1995, the apartments were closed, and this year the city board of directors voted to spend $70,000 bulldozing the abandoned buildings.

SNOWBALL CONTINUED ON PAGE 12

Riverside at Rockwater opened in June near the site of the old Vestal Nursery in North Little Rock. [PHOTO BY JASON BURT] Online all the time. Th e new ArkansasBusiness.com Left to right: Jennifer Pyron, Ashley Blackstone, Tom Brannon, Alyse Eady, Heather Bennett

MOST COMPREHENSIVE SOCIAL CALENDAR IN TOWN Jennifer Pyron of Little Rock Soirée visits Today’s THV This Morning to fill you in on all things cultural in the city.

VISIT LITTLEROCkSOIREE.COM, FAMILY PLANS IN YOUR AREA LITTLEROCkFAMILY.COM AND Be sure to catch Heather Bennett of Little Rock Family on TODAYSTHV.COM FOR THE bEST IN Today’s THV This Morning for the latest information on CENTRAL ARkANSAS COVERAgE. fun family-friendly activities in Central Arkansas. Arkansas Business November 12, 2012 3

Coleman No Longer

Coleman Dairy, the 150-year-old Little Rock ebrate its 150th birthday this year, our insider Arkansas milk brand, will disappear in 2013. Or so a conjectured. Business Coleman insider confirms. The Coleman family is still involved at These days, Coleman is a division of Hiland the Little Rock plant through Cherb and Walt Dairy of Springfield, Mo. Next year, the Hiland Coleman, who are plant manager and control- Dairy brand will replace the Coleman brand ler. The plant employs 230 people. Whispers on all products from the lone Coleman plant in Hiland also owns Hiland-branded plants in Little Rock. Fayetteville and Fort Smith. For daily news, register at ArkansasBusiness.com/Enews Why? Most of Hiland’s customers are regional, Purple Cow for Conway them is the Purple Cow. “so they are in the process of eliminating Remember hearing that the local brands and going to a regional brand,” Purple Cow was working to open our insider said. The Coleman company was a restaurant in Conway? Steve Standridge News sold 17 years ago, “and Earlier this year, Philip Steve Standridge now has so I guess we’ve been Tappan, busi- one less legal battle to deal with very fortunate that this ness part- as he prepares for his criminal hasn’t happened before ner of Purple trial. now. It’s one of those Cow President Standridge, the former insur- things that happens.” Todd Gold, ance agent from Mount Ida who The Coleman fam- said the com- is facing 12 felony federal counts ily started the company pany had “lined up a great oper- related to allegedly fraudulent in 1862 in Little Rock. ator/partner if [the] lease trans- premium finance loans, recent- The family sold the busi- action becomes a reality.” ly settled a lawsuit where he ness in 1995 to a coopera- Tappan declined at the time and his agency were accused of tive that Turner Holdings of to be more specific. fraud and defaulting on loans Covington, Tenn., bought However, Hendrix College in totaling $152,400. in 1998. Prairie Farms of Conway is moving forward early Standridge agreed to pay the Carlinville, Ill., owner of in 2013 with a multiuse building plaintiff, Cornerstone Finance Hiland, then bought Turner project adjacent to the campus Co. of Columbia, Mo., $45,000 Holdings in 2007 and made and has named the first com- in three $15,000 installments. Coleman a division of Hiland. mercial tenants who have com- But if he misses a payment, Prairie Farms might have waited to drop the mitted to the coming building then Cornerstone will go after Coleman name till 2013 so Coleman could cel- on Steel Avenue. Yep, you guessed it: One of WHISPERS CONTINUED ON PAGE 4

Ranked among the nation’s top ten insurance restoration contractors in both the Qualified Remodelers and Remodeling Magazine – August 2012 Licensed General Contractors Specializing in all types of Disaster Restoration including Contents. Fire • Smoke • Water • Storm • Environmental

Emergency Response Hotlines (501)758-2845 Toll Free 1-855-METRO-79

www.MetroDisaster.com 4 November 12, 2012 Arkansas Business WHISPERS

WHISPERS CONTINUED FROM PAGE 3 cel the policies so that any unearned pre- Rock, where he has pleaded not guilty. taurants in the state in 2012? mium would be returned to Cornerstone Standridge’s defense team is sched- Packet House Grill in Little Rock, Standridge for the $152,400 plus $15,000 and applied against the balances owed uled to have a hearing on Nov. 20 involv- Taziki’s in Conway and Houlihan’s in for attorney’s fees and other amounts. on the promissory notes, the lawsuit said. ing a subpoena issued to Darwin Hendrix, Rogers have already opened, and Little Cornerstone filed the lawsuit last year That’s when Cornerstone learned the CEO of the Bank of Delight. He was Rock in November has the openings of in U.S. District Court in Hot Springs. that “no such insurance policies existed supposed to hand over all of the bank’s Local Lime, Utopia Restaurant & Lounge The company said it handled the insur- despite the contractual obligations and records involving a number of loans and Dixon Road Blues Cafe on the agenda. ance premium financing for several of representations” of Standridge and the related to Standridge’s case. And those are just a handful of names Standridge’s lumber company clients. companies that borrowed the money. In response, Hendrix said he was that come to mind for your Whispers Cornerstone made the loans between Cornerstone’s lawsuit said Standridge prohibited from disclosing nonpublic writers. April 2009 and February 2010. Standridge used “deceptive, false, unconscionable, personal information of a customer. We So, we wondered if the Arkansas res- and his agency had guaranteed them, willful, and malicious” tactics to obtain understand that some of the records taurant market is growing post-reces- and Cornerstone held the policies as col- the loans. Cornerstone wanted its money the defense team is seeking involve the sion. lateral. back for the loans and was seeking at bank’s suspicious activity reports. Not so, said Ed Barham, spokesman When the loans started default- least $500,000 in damages. for the Arkansas Department of Health. ing, Cornerstone contacted the insur- With that case settled, Standridge Restaurants can’t open in the state with- ance companies that held the policies. now can turn his attention to defending Restaurant Market ‘Flat’ out permits from ADH, and the year- Cornerstone wanted the carriers to can- himself in U.S. District Court in Little Have you noticed a flurry of new res- over-year totals of active food service permits aren’t tremendously encourag- ing when analyzed, he said. In December 2011, the state had 15,759 active permits, Barham said. Last week, the state had 15,792. Thirty-three new permits statewide is barely a blip. The number of permits is up by about 1,000 since 2009, but that is mainly because the ADH began requiring per- 92% of health mits for school concession stands. School Trouble professionals recommend It looks like the former superinten- dent of the Pine Bluff School District isn’t going away quietly. Jerry Payne is suing the school district QUALCHOICE. for firing him from his $145,000-a-year

In a recent survey, 92% of doctors, nurses and staff would

Name Date recommend our insurance. They know the quality customer Address service we offer – whether it’s when you’re getting a quote, Mary Gay Shipley, That Bookstore in Blytheville. [PHOTO BY JACKIE WILSON] signing a new customer or asking us a question. With all of our employees under one roof, we can address your questions Bookstore Sale and concerns quickly. It’s one of the many beneﬁ ts you’ll Looks like there’s light at the end discover when working with an Arkansas-based company. of the tunnel for That Bookstore in quality, affordable You can experience our service for yourself – visit us online Blytheville. health insurance or give us a call today.

ISSN: 1053-6582. USPS Number 730-650

Font specs (full size as used in Page One nameplate): Vol. 29 Number ARKANSAS 46, BUSINESS: Nov. Antenna 12 Condensed - Nov. Bold 80 pt .18, 2012. Arkansas THE STATE’S ... : Antenna Condensed Regular 10 pt. Color specs: C82 M40 Y10 K0 MD Business is publishedRule weight: 14 pt weekly for $64.95 per year, Leading: custom $94.95 per yearAlignment: out ﬂ ush right of state, 6 months in state for Signature $39.95, 6 months out of state for $69.95 and $194.95 foreign per year (including Canada) by Arkansas Business Publishing Group, 122 E. Second St., Little Rock, AR 72201, P.O. Box 3686, Little Rock, AR 72203, (501) 372-1443, facsimile (501) 375-7933; Periodical postage paid at Little Rock, AR. Postmaster, send address change to Arkansas Business, P.O. Box 3686, Little Rock, AR 72203. Copyright 2012 Arkansas HEALTH INSURANCE Business Limited Partnership. QUALCHOICE.COM | 501.228.7111 Subscribe Today: 501-372-1443 888-322-6397 GROUP | INDIVIDUAL | LIFE & DISABILITY | HSA/HRA/FSA ADMINISTRATION | TPA arkansasbusiness.com/store WHISPERS Arkansas Business November 12, 2012 5 job even before he reached his one-year Payne is seeking an unspecified ular-season opener. The UA sold Murphy USA was working on a new web- anniversary. amount of money for damages. about 9,900 last year, he added. site to replace the buggy site that was less Payne said in the lawsuit he filed in A season ticket package for all 20 games than a year old. U.S. District Court in Pine Bluff that the costs $450. Also available are “Cardinal” The new site has launched, but it’s school board breached its contract with Ticket Talk and “White” mini-plans. For $125, fans got a few kinks. The page for contribu- him and didn’t give due process. With college basketball season tip- can buy five-game ticket packages. The tors to its “The Smarter Driver” blog looks The school board said in its court ping off all over the country, some of us “Cardinal” package is highlighted by like it went out the door unfinished. It filings that Payne was properly canned wondered if the University of Arkansas, games against Syracuse and Missouri, shows stock photos of Bette Davis, John under the “no cause” provision of the under second-year coach Mike Anderson, while the “White” package features Lennon and Carolyn “Morticia Addams” contract that he signed in June 2011. had experienced an uptick in season games against Florida and defending Jones (also labeled as Bette Davis) along “The contract states that the Board ticket sales. national champ Kentucky. with the traditional “Lorem Ipsum” Latin may vote not to extend the contract on Turns out Razorback fans appear to placeholder text. or before the anniversary of the contract be taking a wait-and-see approach to this Even more amusing, the list of con- each year,” the board’s attorney, Luther year’s team. Lorem Oops-um tributors on the page includes the celeb- Sutter of Benton, said in his filing. “This According to althetic depart- Did you know that Tony Hawk, Snookie rities mentioned at the top and others, is precisely what happened.” ment spokesman Kevin Trainor, about and Donald Trump are all working for like Snow White handling “Disney rela- The board did have several reasons to 9,800 season tickets had been sold Murphy USA? tions,” Elton John on “vibrancy” and Lady fire Payne, according to a letter that was as of Nov. 7, two days before the reg- Back in July, Whispers reported that Gaga on “shock & awe.” n filed as part of Payne’s complaint. Payne hired a friend to deal with the school’s technical issues at a cost of $54,000, the board said in its May 18 letter to Payne. Payne didn’t get approval from the board before the vendor was hired, and Payne didn’t take competitive bids for the job, the letter said. Payne said the board made the decision to fire him in an executive session on Feb. 28. But when the board recon- vened in open session, it took no action. Arkansas law “requires a public body, upon returning form executive session, to reconvene in public session and vote in public on any such motion to termi- nate a contractual agreement,” Payne % said in his lawsuit. %

Owner Mary Gay Shipley put the TOP 1 shop up for sale in February and said she was planning to close if she didn’t TOP 1 find a buyer within a few months. Now, a buyer has been named: Grant Hill. EXCELLENCE THAT STANDS ALONE Hill, a 22-year-old Mountain Home resident, said he was working with Southern Bancorp and the St. Vincent is proud to announce that Ali Krisht, M.D., director Greater Blytheville Area Chamber of the Arkansas Neuroscience Institute, has been named among of Commerce to secure the $35,000 the top 1% of neurosurgeons in the nation by physician ratings needed to buy the business. firm Castle Connolly. Also, U.S. News & World Report recently “I’ve always dreamed of buying a named him one of the country’s leading neurosurgeons. bookstore,” Hill said. Shipley confirmed the purchase. “We are getting to a contract and As a pioneer in the field of neuroscience, Dr. Krisht’s passion hope to be able to make an announce- for medicine is invaluable to the St. Vincent mission of serving ment soon,” she said in an email. n our community. His rare level of expertise brings patients and neurosurgeons to ANI from around the world – to be treated by and to learn from the best.

Visit StVincentHealth.com/ANI to learn more. 6 November 12, 2012 Arkansas Business

ArkansasWeekly Business Report For daily news, register at ArkansasBusiness.com/Enews

Politics

Dislike of Obama Leads The $12 million Legacy Park apartment complex replaces the old West Apartments. Construction on phase two will begin later this month. [PHOTO BY JEFF MONTGOMERY] GOP to State Victory NORTHEAST ARKANSAS

President Barack Obama’s unpopular- Voters also rejected a proposal that ity and the involvement of outside con- would have allowed cities to create New Harding Apartments servative groups helped Republicans in development districts backed by expect- Arkansas achieve a prize that had eluded ed sales tax revenue. Dedicated to Supporters them for 138 years when they swept the The ballot measures and the presi- state’s U.S. House seats and wrested con- dential race were overshadowed by Harding University in Searcy has dedi- trol of the Arkansas Senate and House in Republicans’ bid for a sweep at the cated the new Legacy Park apartment Tuesday’s election. legislative and congressional level in complex to 15 families who played a sig- But an agonizingly close fight for Arkansas. The GOP built on momen- nificant role in the growth and develop- control of the state House opened up tum two years ago when it flipped a U.S. ment of the school. the possibility of a sharply divided state Senate seat and two U.S. House seats by The dedication was included in Legislature where both parties will have tying Democratic candidates for the state Harding’s Homecoming festivities. to work together after dozens of bitter Legislature to Obama and his federal Faculty and staff honored were Dr. and caustic races across Arkansas. health care law. J.D. and Mary Bales; S.A. and Thelma With Republican presidential hopeful Though the president hasn’t visited Dumas Bell; M.E. “Pinky” and Rheba Mitt Romney winning the state’s six elec- the state since 2006, his face popped up Berryhill; Leslie and Corinne Burke; Annie board member Roy Sawyer and his wife, toral votes but losing his bid for the White on mailers and in ads by Republican May Alston Lewis; F.W. and Mildred Marj. House, attention in Arkansas focused on candidates and affiliated groups. Former Mattox; Erle and Mona Moore; Lonnie E. The $12 million Legacy Park apart- the GOP’s bid to upend a political tradi- Gov. Mike Huckabee even joked that the and Queetro Pryor; Andy and Kathryn ments replace the old West Apartments, tion that dated back to when the state Democratic president should be reward- Ritchie; Jack Wood and Mattie Sue Sears; built in 1974. Construction on phase two emerged from the Civil War. ed for his recruitment efforts for state and Buford and Ermal Tucker. of Legacy Park will begin later this month, “I think it’s a an exciting new day Republicans. Also honored were long-time mis- according to school officials. Once com- for Arkansas after 138 years of pri- “This state has been trending sionaries Alvin and Georgia Hobby and plete, Legacy Park will include 92 apart- marily one-party rule,” said fresh- Republican for the last two or three elec- Dow and Helen Merritt, major donors ment homes for Harding students. man Republican U.S. Rep. Tim Griffin, tion cycles,” said Clint Reed, a political Dale and Joan Coleman and former — Mark Carter who defeated Democratic challenger strategist and former executive director Herb Rule in the race for Arkansas’ 2nd of the state GOP. “Barack Obama just Congressional District. happened to be the straw that broke the Mississippi County 200 employees. Griffin and the state’s two other camel’s back.” The county found itself in the financial Republican incumbent congressmen Aside from dislike of Obama, Cuts $1.5 Million, mess because “we’ve had a couple of cata- won re-election, while the GOP’s Tom Republicans were aided by the help of strophic things happen to us,” White said. Cotton won a U.S. outside conservative groups such as Triggering Layoffs In 2009, Ameris Health Systems of House seat in south- Americans for Prosperity that spent big Nashville, Tenn., stopped operating the ern Arkansas. Cotton’s on the fight for the Legislature. AFP has The Finance Committee of the county’s two hospitals. The move left the win in the 4th District, spent more than $900,000 in the state Mississippi County Quorum Court slashed county “in terrible financial condition, for a seat vacated by over the past two years and sent 1.1 $1.5 million from the county’s 2013 bud- virtually bankrupt,” he said. Democratic Rep. Mike million mailers in 32 House and Senate get, which will trigger layoffs of about a The county pumped $5 million from Ross, gave Republicans districts around the state. dozen employees. its reserves into the hospitals in 2010 a sweep of the state’s Democrats were helped to a lesser Finance Committee Chairman to prevent them from closing, he said. U.S. House seats. Tom extent by the Democratic Legislative Michael White said nearly all of the elect- But the transfer of money drained the Republicans won 21 Cotton Campaign Committee, which sent mailed officials saw their budgets cut 16.3 county’s reserves, he said. “So we ended of 35 seats in the state Senate. In the ers and ran radio ads around the state. percent as a result of decreased revenue up without any fallback monies,” he said. House, Republicans held a 50-48-1 edge The GOP takeover came in spite of for the county. And Mississippi County is in a fight over Democrats and the Green Party polls showing that Arkansas voters over- The departments that took the biggest with the city of Blytheville over jail fees with results from one contest still to whelmingly backed Gov. Mike Beebe’s hits were the county’s landfill depart- involving municipal prisoners who are be counted as of late last week. There performance and believed the state was ment, which will have its budget cut by arrested by Blytheville Police Department was no Democrat in the contest, mean- headed in the right direction. Beebe, more than $600,000, and the Mississippi and then housed at the county jail. ing that a GOP victory in a race against who was re-elected in 2010, was not on County Sheriff’s Office, which will have White said the city owed the county an independent would give Republicans Tuesday’s ballot but had been the chief $553,000 less in 2013 than it did in 2012, more than $800,000 in fees for housing its control of the House for the first time salesman for his party’s bid to a keep a White said. prisoners. He said the city wasn’t doing since 1874. legislative majority. Mississippi County’s general fund anything about it. Blytheville Mayor The state’s voters also approved a Also in last week’s election, voters budget in 2013 will be $9.75 million. James Sanders declined to comment on half-cent sales tax for highway improve- in Benton, Madison and Sharp coun- White said he wasn’t sure how many the issue because a lawsuit between the ments, but rejected a proposal to make ties voted to approve in-county alcohol county employees would lose their jobs. county and the city over the dispute is Arkansas the first Southern state to legal- sales. He said the county first would eliminate pending. ize medical marijuana. — The Associated Press open positions. The county has about — Mark Friedman WEEKLY REPORT Arkansas Business November 12, 2012 7 Manufacturing Industrial Space more than 1.1 million SF of positive absorp- tion so far this year. Vacancy Rate Edges Up “We expect some fl uctuation in the Hawker to Close LR Facility, The vacancy rate in the industrial real vacancy rate for a while,” said Drew Holbert, estate market in central Arkansas rose a broker with Colliers International. “We’ve slightly during the third quarter, increasing said we do expect to see the trend continue Reduce Arkansas Workforce to 11.3 percent, compared with 11 percent in downward but there will be slight fl uctua- second-quarter 2012. However, it’s a marked tion. Taking the long-term bird’s-eye view Hawker Beechcraft Corp. of Wichita, ruptcy in May, employs about 280 people decline compared with third-quarter 2011, perspective, there’s good activity. We know Kan., announced Wednesday it would at Adams Field in Little Rock, where it when the vacancy rate totaled 14.5 percent. there’s going to be more product coming on close its Hawker Beechcraft Services facil- finishes out its line of private jets. That In addition, a report by Central Arkansas the market in the next two or three quarters, ity in Little Rock and reduce its remain- operation would have been included in Commercial Data Exchange notes that the but long term, we expect it to be a fl at to a ing workforce. the sale to Superior Aviation, which the area’s industrial real estate market has seen declining vacancy rate.” The company stated in a news release companies scrapped last month. that the changes were part of a post- Post-bankruptcy, Hawker planned Chapter 11 bankruptcy assessment of the to rename itself “Beechcraft Corp.” and company’s future. focus on its profitable turboprop, piston, Vacancy Rate by Quarter The release said that facilities in special mission and trainer/attack air- Mesa, Ariz., and San Antonio would be craft businesses. It had said it might sell 16% 14.5 % closed along with the Little Rock facility. “some or all” of its other product lines, or 14% 13.8 % “Approximately 240 employees will be close its “entire jet business if no satisfac- 12.3 % affected in these locations,” the release tory bids are received.” said. In a statement, U.S. Rep. Tim Griffin, 12% 11.0 % 11.3 % About 170 additional workers will R-Ark., called the news a “blow to 10% also be laid off between the Little Arkansas’ aerospace manufacturing Rock Completions Center and Hawker development.” But it is the latest in a series 8% Beechcraft Corp. in Wichita, Kan., where of setbacks that have slowly trimmed jobs the company has its headquarters. More from a major Little Rock employer. In 6% than half of the reduction will take place August, the company laid off 170. Vacancy Rate (%) Rate Vacancy in Little Rock, the news release stated. Hawker has been an important player 4% Little Rock employees affected by the in Arkansas’ aerospace industry. It is 2% move will be notified this week. the state’s third-largest aerospace firm, “While extremely difficult decisions, according to Arkansas Business’ 2012 0% these closures and reductions in force list. Products in aerospace are the state’s 2011 2011 2012 2012 2012 will get the company closer to what we second-largest value-added export, Q3 Q4 Q1 Q2 Q3 envision for our go-forward plan that according to the Arkansas Economic focuses on turboprop, piston, special Development Commission. mission and trainer/attack aircraft, as In addition to supporting hundreds of well as our parts, maintenance, repairs jobs, the company has occupied 247,500 THEY SAID IT and refurbishment business,” the release SF of hangar and office space at Adams “Our industrial market bottomed out at the end of 2010, said. Field. Through an agreement that ends nearing 17 percent vacancy. We’ve come a long way from An email from Hawker Beechcraft in 2037, the Bill & Hillary Clinton National stated that the company would not pro- Airport receives $587,626.05 per year that.” vide specific layoff numbers for any of the from Hawker for the use of land and — Drew Holbert, Colliers International various locations, nor would it comment. buildings at Adams Field. Hawker, which filed Chapter 11 bank- — Luke Jones Source: Central Arkansas Commercial Data Exchange

Banking and Finance Notable Deaths Cornerstone Mortgage Closing; Former Searcy Editor Staff Joining IberiaBank Mortgage Perrin Jones Dies at 80 Cornerstone Mortgage Co. of Little IberiaBank Mortgage. Cornerstone will Perrin Jones, who edited The Daily Jones then worked at the Arkansas Rock, the largest independent mortgage close at the end of November. Citizen in Searcy for decades, has died. Attorney General’s Office from 1990 company in Arkansas, is closing its oper- The move reflects the consolidation He was 80. until 2010. ations this month, and staff members are pressures smaller lenders are facing Jones’ family owned The Daily Jones told his old newspaper in joining IberiaBank Mortgage Co. with more regulator requirements and Citizen for three generations, and he 2011 that he never bought equipment Michael Powell, who co-founded increased costs to comply. served as editor from 1954 until 1986, that he couldn’t run himself, so that Cornerstone Mortgage in 1999, has “Even with a company our size, we’re several years after the paper was sold. the paper would be assured of pub- joined IberiaBank Mortgage as executive looking at regulator requirements and He continued to write a weekly column, lishing every day. vice president and production manager. meeting all types of mandates,” Quick the last of which appeared Sept. 21. — The Associated Press “He grew that company to be a for- said. “We have had to put together a fairly midable player in the mortgage field in significant compliance department. It’s and around the Little Rock area,” said very expensive to do that.” Hospitality Association. Chuck Quick, president of Little Rock’s Powell, four loan officers and three Bryan Burkhalter, Burkhalter was owner of Cock of IberiaBank Mortgage. “He also expand- support staff have already joined Restaurateur, Dies the Walk restaurant in North Little ed the business out into Fort Smith, IberiaBank Mortgage. Rock. He opened the franchised Wynne and Paragould. He was a premier IberiaBank Mortgage operates 64 Bryan Burkhalter, past president of restaurant in 1984 and operated it lender when it came to rural develop- locations in 12 states, with annualized the Arkansas Restaurant Association for nearly three decades. In recent ment loans.” mortgage loan origination volume of and the Arkansas Hospitality months, he had been attempting to Cornerstone’s office at 300 S. more than $2 billion. Based in Lafayette, Association, died Tuesday after a long sell the business. Shackleford Road in west Little Rock La., IberiaBank has 277 combined offices. illness, according to the Arkansas — Kate Knable will become a branch operation of — George Waldon 8 November 12, 2012 Arkansas Business WEEKLY REPORT NORTHWEST ARKANSAS

and now it works really well. We’ve found Space Photonics Reaches Deal on LaserFire Systems the perfect partner.” Space Photonics Arkansas and is located at the UA’s Jim Rankin, vice provost for research and Retired U.S. Air Force Major Gen. of Fayetteville, Arkansas Research & Technology Park. economic development at the UA. “Its Scott Custer, president and CEO of which develops According to the news release, the success reflects well on the research and Schott Defense, said the partnership optical communications systems for the covert optical wireless communications innovation capabilities at the University with Space Photonics would help protect military and aerospace industries, has technology “enables uninterrupted, of Arkansas and in the state of Arkansas.” the lives of U.S. soldiers. partnered with Schott North America for secure high-capacity communications, Space Photonics CEO Chuck Chalfant Manufacturing of LaserFire will begin the commercialization of its patented including building-to-building, ship- called Schott a world-renowned supplier at Schott’s lighting and imaging unit in LaserFire systems. to-shore, vehicle-to-vehicle and other and manufacturer of optical components. Southbridge, Mass., later this year. Space The LaserFire free space optical com- platforms where detectable and lower “There’s no other company in the Photonics will receive a royalty payment munications systems will be marketed capacity microwave is not effective, and world that has better expertise when it for each system sold by Schott in the for military and intelligence customers, where high-capacity fiber-optic cable is comes to optics,” he said. “The partner- U.S. Chalfant said that revenue will help according to a news release. not available or has been damaged.” ship for us is huge. We hope to start the company expand further and create Space Photonics is a Genesis Technology “It is exciting to see Space Photonics generating sales in the next six to nine more jobs. Space Photonics employs 12. Incubator client at the University of continue to grow and be successful,” said months. We thought up some cool stuff — Mark Carter

When it comes to preparing innovative business leaders,

Market Square South at The Village at Hendrix we’ve got the experts in Conway. [ARTIST’S RENDERING] CENTRAL ARKANSAS Dr. Rachida Parks, a management information systems assistant professor in the UALR College of Business, has held Hendrix to Start $14M numerous technical, managerial, and teaching positions in In Construction Projects the fields of health care, education, and the U.S. Department Construction of an $8 million ath- of Defense. letic complex and an approximately $6 million multiuse building should begin She was the co-founder and co-owner of a in the next few months at The Village at Hendrix. The Village is a for-profit telecommunication consulting firm and has authored or development owned by and adjacent to co-authored multiple published articles on privacy and Hendrix College of Conway. The athletic complex will comprise a security. Her current research focuses on health care football stadium, field house and three information technology and health informatics, privacy indoor tennis courts. Site work has already begun for the athletic project, and security, and information technology education. and construction is scheduled to start in December, according to Village CEO With a doctorate in information sciences and technology from Ward Davis. Pennsylvania State University and her real-world experience, East-Harding of Little Rock is the contractor building the stadium and field Dr. Parks brings a wealth of knowledge to her students and the house. Fennell Purifoy Architects of Little Arkansas business community. Rock is the project architect, and B&F Engineering of Hot Springs is the project engineer. College spokesman Frank Cox said Hendrix was resurrecting its football team, which hasn’t existed since the 1960s, and plans to have the athletic complex completed before the first home football game in September 2013. The other project, Market Square South, has been designed as a 32,000-SF commercial and student housing building. Construction is scheduled to begin College early in 2013 and should wrap up by the of Business end of that year. The new building’s first floor will house commercial tenants, and the two university of ArkAnsAs At little roCk upper stories will house students. Polk Stanley Wilcox Architects of Little Rock is designing Market Square ualr.edu/cob South. Nabholz Construction Services of Conway is the project’s contractor and B&F Engineering is the engineer. — Kate Knable Arkansas Business November 12, 2012 9

didn’t consider what was best for the patient. Ruling Will Ease Distribution of The Medical Board’s attorney, O’Dwyer, said he challenged the accusation about the origination of the 1983 law. “I disagreed with that,” he said. Prescription Drugs by Doctors “I mean, you’re talking about legislation that occurred almost Appeal of Pulaski 30 years ago.” As part of the lawsuit, Perroni County judge’s sifted through nearly 30 years of decision expected requests from doctors to obtain the permit. He found that most By Mark Friedman of the time the requests were [email protected] denied “for what we believe was arbitrary reasons designed to A recent ruling by a Pulaski protect the pharmacies’ finan- County circuit judge will make cial interests,” he said. it easier for doctors to dispense Riley, of the Arkansas prescription medicine from Pharmacists Association, said their offices, a development the legislation wasn’t created to that the Arkansas Pharmacists protect the financial interests of Association has called “danger- the pharmacists. ous.” He said that while it’s the “There’s not a public outcry doctor’s job to diagnose and for physicians to dispense,” said identify treatments, pharma- Mark Riley, executive vice presi- cists are the ones who are dent of the association. “There’s trained in how best to use not a need … here.” the drugs. But others praised the ruling. “We pride ourselves “I think not only could it be on being the last line of a huge change for doctors, I defense in giving the think it could be a huge change patient the opportunity for patients,” said Sam Perroni, of having all their medi- an attorney for Dr. Dana cal history housed in one Carol Abraham of Little Rock, place with the person who who challenged the Arkansas is most qualified to know drug Medical Board’s policy of strict- interactions and how you’re ly limiting the dispensing of Dr. Dana Carol Abraham of Little Rock specializes in breast oncology surgery. [PHOTO BY MICHAEL PIRNIQUE] supposed to use it,” Riley said. prescription drugs at doctors’ He said the reason doc- offices. last week that he would wait compliance, to promote patient Arkansas could dispense medi- tors want to sell prescription As a result of Judge Chris before the ruling was entered safety,” according to a transcript cine without a permit. In 1983, drugs was to make extra money. Piazza’s bench ruling last month before deciding his next move. of her December 2010 hear- though, the General Assembly Perroni said Abraham testified on a motion for summary judg- “No decisions have been ing before the Medical Board, passed a bill that said doctors twice that “she hadn’t done any ment, patients will soon have made,” he said. “I don’t know which was filed as part of her must go before the Medical study whatsoever about how the option of getting medication what the order is going to say.” lawsuit. Her application was Board and show a need before much money she could make from their doctors, Perroni said. Riley, of the pharmacy asso- denied because she didn’t show receiving a permit to dispense off” selling prescription medi- For nearly 30 years, in order ciation, said he thought the a need. medicine. cations from her office. “Her for a doctor to get a permit to dis- ruling was dangerous because “The reason for the denial “It was fatally ambiguous,” sole reason for wanting to do pense medication, he or she had a judge decided how a profes- was never completely articu- Perroni said. “Because the stat- it was the convenience of her to apply to the Medical Board sional board uses its discretion. lated, but ranged from the ute contained no definition for patients.” and “show a need.” In nearly all “The Legislature set up those fact that Dr. Abraham’s office showing of the need, the need Perroni said a number of cases, the board denied doctors’ boards to protect public health was 0.6 miles from the near- could be interpreted several Abraham’s patients were on applications. That’s what hap- with a specific emphasis on the est drug store to Board mem- ways. … When you start looking Medicaid and had to find trans- pened in 2010 to Abraham, who profession that they regulate,” specializes in breast oncology Riley said. surgery. She appealed the ruling The Arkansas Medical to Pulaski County Circuit Court Society didn’t take a position on “The patient ought to have the right to choose” where to get and won. the issue. As a result of the circuit court “Certainly there will be some the medication. “There’s no law that says the patient has to ruling, doctors won’t have to physicians who will want to dis- get it from the doctor, but you ought to be able to choose.” “show a need” to obtain the per- pense,” H. Scott Smith, direc- mit to sell medications, Perroni tor of governmental affairs [SAM PERRONI, AN ATTORNEY FOR DR. DANA CAROL ABRAHAM] said. for the Medical Society, told “All they would have to say is Arkansas Business last week. bers failing to understand how at the definition of need, you’re portation to her office. Patients ‘I want to dispense. I want my “There are physicians who want dispensing [prescription] drugs just all over the place.” then would have to find a ride permit,’” he said. “And that’s it.” to dispense now, and that’s why would be economically feasible He said the only reason the to a pharmacy to fill their pre- Piazza’s ruling, though, is you’ve got the case.” for [Abraham],” according to legislation was passed was to scriptions. likely to be appealed. His order Abraham’s lawsuit. protect the financial interests “The patient ought to have was being prepared and wasn’t She appealed the ruling of the pharmacists. “There was the right to choose” where to entered into the record as of The Case to the Pulaski County Circuit no rebutting that,” Perroni said. get the medication, Perroni Wednesday. Abraham asked the Medical Court. She argued the language “That went unchallenged.” said. “There’s no law that says Kevin O’ Dwyer of Little Rock, Board for a permit to dispense was vague in the 1983 statute He said that when the the patient has to get it from the the attorney for the Medical prepackaged medicine from that dealt with permits. Medical Board evaluated an doctor, but you ought to be able Board, told Arkansas Business her office “to improve patient Before 1983, doctors in application, board members to choose.” n 10 November 12, 2012 Arkansas Business BREAKFAST SPECIALS Assessing a Historic Daily Election Night in Arkansas from 6:30am - 10:30am rkansans on Tuesday voted over- whelmingly for Republican pres- Aidential nominee Mitt Romney, filled each of its U.S. House seats with Republicans and gave the GOP its first majority in the state Legislature since Dine In or Reconstruction. Take-Off (as we like to call take-out) But they also approved a new 10-year, 0.5 percent sales tax to fund $1.8 bil- 2301 Crisp Drive / Little Rock / 72202 / 501.975.9315 / central.aero lion in highway improvements and nar- rowly defeated Issue 5, which would have allowed the production and sale of medi- 4.791” x 2.8” cal marijuana in the Natural State. 1/8 page horizontal Some notes and takeaways from the Analysis Not just Arkansas Business 2012 election results: Lance Turner clog-free. [email protected] Only LeafGuard’s one-piece, seamless covered gutter gives you incumbent Republican Tim Griffin GUARANTEED defeated Democrat Herb Rule by 16 the perfect angle built right into points. Rule (and Obama) won peren- the cover–maximizing water intake. nially blue Pulaski County, but Griffin clog-free. • Never clogs – or we clean it for FREE* made up ground in the district’s remain- • No lifting of shingles to install Call Now and ask about • Wide range of colors Mitt Barack ing six counties. • FREE estimate Romney Obama With no Democrat on the ticket in our current promotion. *For as long as you own your home. See dealer for details. Other restrictions may apply. the 3rd Congressional District, incum- 1-800-LEAFGUARD No Surprises. Arkansas voted Romney. bent Republican Steve 501-664-5400 Mitt Romney beat President Barack Womack took bet- Obama in Arkansas by some 23 points, ter than 75 percent of www.leafguard.com Built to stay clog-free, guaranteed.* 60 percent to 37 percent. Romney actu- the vote at last report. ally improved the margin of victory for But he might have Republicans versus 2008, with John received as many even McCain defeated Obama in Arkansas by if Democrat Ken Aden 20 points, 59-39. hadn’t withdrawn Clean Sweep. Nationally, Republicans over questions about Steve maintained their hold his military record. Womack on the U.S. House of Womack received more Representatives, even than 72 percent of the 3rd District vote as Democrats did the when he was elected in 2010. same in the U.S. Senate. Majority Rule. For the first time since Voters awarded all four Reconstruction, Republicans gained of Arkansas’ House control of the Legislature, taking narrow seats to Republicans, leads in the Senate with 18 seats and the with rising star Tom Tom House with 51 declared seats. Cotton defeating Cotton Democrats hold 48, and the Green Democrat Gene Jeffress Party has one. At press time, Democrat in the 4th District, L.J. Bryant had asked for a recount in his F. John Deuschle III home of retiring Blue close District 52 race with Republican Dog Democrat Mike John Hutchison. Ross, who increasingly It wasn’t quite the changeover some Expanding our Legacy looks like the last of a predicted. Republican State Sen. Gilbert breed in Arkansas. Baker predicted the GOP would end up egacy Capital Group is honored to announce the addition of In the 1st District, with 20 seats in the Senate. Griffin fore- John Deuschle to our team. John is a Little Rock Catholic High incumbent Republican Rick saw 25 in the Senate and 60 in the House. L School graduate who attended Southern Methodist University Rick Crawford won a Crawford Republicans insisted they didn’t target and graduated from the University of Arkansas, Fayetteville. He has a 17-point margin over particular seats, but in the Arkansas diversified background with twenty three years of experience in the equity, Democratic challenger Scott Ellington, Democrat-Gazette, state Party Chairman fixed income and corporate finance markets. John has worked at Lehman Brothers (New York and Dallas), Bank of America (Charlotte), HSBC (New the prosecuting attorney who just Doyle Webb identified five House seats York), before coming home to Little Rock in 2002 where he worked at couldn’t get traction in the district, a he felt were vulnerable: Districts 41, 59, Stephens Inc. before forming Deuschle Capital Management. In addition former Democratic 62, 73 and 82. to his resume, John brings a set of core values and work ethic backed by stronghold. Crawford Instead, Democratic incumbents integrity and his faith that epitomizes what Legacy Capital Group works won the district’s big retained four of them. Republican Bill to achieve on a daily basis. John and his wife Ginny have four daughters. counties, Craighead Gossage handily defeated Rep. Leslee and Independence. Milam Post in District 82. WHAT WILL YOUR LEGACY BE? Ellington drew support So what’s next? Calculations might www.lcgar.com along the Mississippi change for the upcoming legislative ses- River, including sion. Gov. Mike Beebe had said that no Securities and Investment Advisory Services offered through NFP Securities, Inc. (NFPSI), member FINRA/SIPC. Legacy Capital Group Arkansas, LLC is a member of Partners Financial, an affiliate of Crittenden County. Tim matter the outcome, he’s going to have NFPSI. Legacy Capital Group Arkansas, LLC and NFPSI are not affiliated. And in the 2nd, Griffin to work hard with a Legislature that has ANALYSIS Arkansas Business November 12, 2012 11 been, at best, cool to his desire to expand favor of the increase. said on Fox News that Republicans had Medicaid in Arkansas as part of nation- And, in a vote closer than some done a “pathetic” job reaching out to al health care reform. But with more expected, voters defeated the medical minority voters. Republicans in the General Assembly, marijuana proposal. As of Thursday, the Karl Rove, the former George W. he’ll have to work that much harder. vote stood at 51.5 percent against, 48.5 Bush political strategist, appeared on Republicans, meanwhile, have sig- percent for. You can expect to see that “Fox & Friends” Wednesday morning naled a move toward income tax reform issue on the ballot again. to say essentially the same thing, and and more school choice. Jon Charlie A New GOP? At the national level, that Republicans had At a Wednesday morning post-elec- Hubbard Fuqua Republicans have begun the post-mor- better pay to attention news conference, Beebe said he tem of a rocky presidential campaign tion to the Latino vote. expects to work closely with Republicans ery had been a “blessing in disguise” starring someone many in the party saw (Rove had made similar in the House and Senate. He said that for African-Americans. And Fuqua said as a less-than-ideal candidate. Arkansas comments at Harding because of the close numbers in both American Muslims should be deported. had no U.S. Senate race this year, but University in Searcy a houses, the parties will have no choice Mixed Message? Even while electing results elsewhere were another blow to couple of weeks earlier.) but to work together. conservative, tax-adverse Republicans, the GOP, which lost seats in a chamber Even Noelle Nikpour, More immediately, Arkansas Arkansans also approved the highway that it once hoped to control come 2013. Noelle the Republican politi- House appeared likely to elect a new tax, showing Arkansans’ willingness to They were also second-guessing the Nickpor cal strategist from Republican Speaker of the House late invest in projects where they expect a makeup of the party — a meme that gath- Little Rock, tweeted last week, removing Speaker-Elect Rep. valuable return. It also didn’t hurt that ered steam early on election night, when Wednesday morning that Republicans Darrin Williams from the post. Williams the business community was firmly in former Arkansas Gov. Mike Huckabee need a “brand change.” n was set to be Arkansas’ first African- American House speaker. In the Senate, Michael Lamoureux was unanimously elected leader. Three Down. Three infamous U.S. President and Vice President Republican candidates lost races Tuesday 69 of 75 counties Reporting night. Loy Mauch, Jon Percent Votes Hubbard and Charlie Gary Johnson / James P. Gray (LIB) 1.51% 16,002 Fuqua were defeated by Democratic rivals. Jill Stein / Cheri Honala (GRN) 0.8% 9,185 All three had been Mitt Romney / Paul Ryan (REP) 60.55% 639,569 criticized for contro- Barack Obama / Joe Biden (DEM) 36.91% 389,879 versial statements. Peta Lindsay / Yari Osorio (SOC) 0.16% 1,716 Mauch called Abraham 1,056,351 Loy Lincoln a “war crimi- Mauch nal.” Hubbard said slav-

Help Us Help You. COMING JANUARY 2013

Sewer Service Line Replacement Assistance Program

The Sewer Service Line Replacement Assistance Program will go into effect January 3, 2013 to aid Little Rock domestic customers with the cost for total replacement of their sewer service line. This is an ongoing effort to reduce inﬂ ow and inﬁ ltration that increases the cost of sanitary sewer collection and treatment as well as the customer’s monthly bill. For more information visit our website at lrwu.com.

Please ensure your homeowner’s insurance coverage includes a “Backup of Sewer or Drain Endorsement.” 12 November 12, 2012 Arkansas Business SPOTLIGHT: Investment Properties Snowball: Landlords Face Crime, Disrepair

Continued From Page One

Now, a similar story is unfold- ing at Valley Heights, a 198-unit complex at 6900 Cantrell Road where rent ranges from $480 to $725 a month for one- to three- bedroom apartments. After a string of burglaries allegedly by apartment residents, the city of Little Rock sued in June to declare the apartments a nuisance. Nearby residents cite the apartments as a source of constant crime. The complex’s owner, Henry Management Inc. of Little Rock, has faced a hail of mismanagement accusations during the past year. (See side- Henry Management Inc. was removed from its management of the Plaza Towers in Little Rock after a fire broke out in a second-floor apartment. One died in bar.) the blaze. Jason Bolden, a real estate attorney, said poor management is almost always the cause for decline of places like Plaza Towers. [PHOTO BY LUKE JONES] But 10 years ago, or 20, or 30, the average Valley Heights resi- it harder to recover once ten- lenge to say you’re not going One bad apple spoils the The Section 8 Challenge dent might have said, “This is a ants start leaving and cash flow to accept a tenant because of barrel — a cliché, but, Warren Landlords must keep their great place to live.” becomes an issue. Lack of cash background issues,” Bolden said, “ultimately, it’s true. If properties full for them to “When they first built it, flow turns into lack of apart- said. you have a murderer living thrive, and at this point, some Valley Heights was more like ment upkeep, which leads to Warren said 90 percent of the at your place, and you have a turn to Section 8, the hous- a young couple’s property,” issues like power outages, sew- battle is screening tenants. single mom living with a kid, ing assistance provided by the said Howard Warren, legisla- age problems and environmen- “Frequently, you have a she’ll think, you know, ‘I need U.S. Department of Housing & tive director for the to move.’ That goes Urban Development. Little Rock Landlord for anybody with a This is true of Valley Heights Association. family. Who wants to and other blighted Henry Success for a place The best quality in landlords live near where mur- Management properties. like Valley Heights Jason Bolden, real estate attorney, former president of the Little der happens or armed “There are just bad apples in needs to start at the Rock Landlord Association. robbery happens?” the system that feel entitled to investment level, Tenants who see be able to destroy your proper- Bolden said. crimes in progress ty,” said Jordan Haas, owner of “If you’re an inves- What is the most important quality for a landlord to have? won’t always contact Rental Realty Inc. in Little Rock. tor, you’ve got to make The folks that succeed in rental — whether it’s individual, single- management, Bolden “You’ve got a lot of people, sure you’re buying family houses, rentals, or as property managers, or even as investors said. Instead, they’ll a lot of owners, who won’t deal right,” he said. “You’ve Jason in property management — are the folks that pay close attention to vote with their feet. with HUD housing at all, since got to make sure you’re Bolden detail. “Then you have there’s been a bad taste left in not overpaying and Expert Advice a bad property with their mouth.” you’re not paying too good tenants, and It doesn’t help when local high of an interest they’ll go somewhere Section 8 authorities are rate. If you have good else,” Warren said. wrapped up in their own prob- financing in place, at a good tal damage. Then a landlord landlord who allows bad ten- “The landlord has been boxed lems, either. purchasing price, the likelihood can’t be as strict about tenant ants, and they treat the place into a corner. He can’t get new For example, Little Rock’s of problems is greatly reduced.” quality. badly,” Warren said. “Then the tenants except bad ones, and he Metropolitan Housing If an investor overpays for a “If you’re really cash- rent received does not begin to can’t fix what the previous bad Alliance fired its executive building, Bolden said, it makes strapped, it makes it a real chal- cover repairs.” ones did.” director, Shelly Ehenger, in

Henry Management Trouble has been stacking up for Henry embezzling from the company. died in the blaze. manage the St. John’s Apartments in Management Inc., the company that runs This year, a spate of lawsuits and well- After residents were moved back inside, a southwest Little Rock. The lawsuit said Henry the afflicted Valley Heights apartments in publicized incidents have shined a light on the water pipe burst, flooding the ninth floor with Management was long overdue on water and Little Rock. conditions at Henry Management properties. scalding water. power bills, and several entire buildings were Long before Little Rock sued Valley In June, the nine-story Plaza Towers Henry Management was removed from without air conditioning. Regions alleged that Heights over its crime issues, Landan building at 6115 W. Markham was evacuated management of the towers shortly after the David Henry had made an urgent request Mitchell, former vice president of Henry after a fire started in a second-floor apart- incident. in August for $63,000 from his partners for Management and personal friend of owner ment. In September, Regions Bank sued unpaid bills. David Henry, was sent to prison for 12 years for Five people were injured and one person Henry Management for allegedly failing to In October, Regions filed foreclosure CONDEMNED APARTMENTS Arkansas Business November 12, 2012 13

August after numerous accusations of whole neighborhood down. That’s mag- nepotism and document falsification. nified in an apartment complex set- The help landlords get from the orga- ting.” PROTECT YOUR INVESTMENT. nization often depends on the people running it. “It’s a real political game you play The Turnaround Potential [with] them; they can fail or pass your But it doesn’t always have to end like it house based on their personal agen- did for Sin City. da with you,” Haas said. “It’s pretty “The biggest thing to do, especially in wild.” that scenario, is you want to renovate, to “There are a number of landlords get people out who are the bad apples,” who refuse to take Section 8,” Warren Haas said. “You’ve got to eliminate them said. “When you get into the complexes completely. I mean, completely.” that start taking Section 8, they statisti- Then, Haas said, renovations need cally have more crime, the rent is being to happen, and management should paid at a lower rate, quality of the payer be extra strict when letting new ten- is less, and therefore good tenants don’t ants in. SIMPLY come there. It’s a vicious, downward “That doesn’t mean you have to raise cycle.” your rent or anything like that,” he said. THE BEST From there, it’s a long fall to the bot- “It all comes back to the quality of people tom. renting, and also the quality of the man- “It can be a snowball effect,” Haas agement company that’s there.” said, “especially if the management com- Bolden said turnarounds like this are Since 1885, Waco Title has been the land title expert in Arkansas. pany doesn’t have any money to do reno- not as rare as one might think. vation and repairs.” “The transition happens regularly,” Put our wealth of experience to work for you. Whether you’re “Unfortunately, as you go down the he said. investing in a new home, land or commercial property, Waco economic ladder, you have more trouble- “At some point, people run out of some tenants,” Warren said. money. The banks work through a short Title is your best choice, anywhere in Arkansas. To learn more, “I’ve heard a lot of folks talk about sale, new management comes in that call us today at 501-716-6100. the broken window policy,” Bolden said. really understands what needs to hap- “If you have one broken window on a pen and those communities can be street, you might have a problem. That’s turned around. I have no doubt that any all it takes. Once you have one property of those properties struggling now can starting to have a problem, it can pull a be turned around.” n

WACOTITLE.COM

KEEP IT UNDER LOCK &KEY

When residents in surrounding neighborhoods complained of crime stemming from the Valley Heights complex, the city of Little Rock sued to declare it a nuisance. [PHOTO BY LUKE JONES] Arkansas’ most influential businesses, organizations and suits on two Henry Management properties. Jordan Haas, owner of Rental execs, all in one place. erties: Valley Heights and Arrington Realty Inc. in Little Rock, for example, If a coworker has taken Apartments at 6301 Camp Robinson Road doesn’t think Valley Heights is too far gone in North Little Rock. for a recovery and is even considering pur- your Arkansas Business David Henry, CEO of Henry chasing the complex himself. Management, hasn’t responded to repeated “I think it still has value,” he said. “It would Book of Lists, you can calls by Arkansas Business to his office. His be a shame to tear it down. They need a new understand why. website still lists all the aforementioned management company in there, new money. properties among the company’s assets. It might need to be renovated. I’ll be one of There’s still hope, if not for Henry the players in that.” Management, then at least for the prop- — Luke Jones Order a copy at ArkansasBusiness.com/BookofLists Why you Should how to create ParticiPate 1. Valuable Employee Feedback Report 2. Heightened Organizational Pride 3. Public Relations, Marketing a Best Place & Recruiting Advantages to Work hoW it WorkS register at arkansasBusiness.com/BestPlacestoWork SiGN uP there is a nominal fee receiVe aSSeSSmeNt 1to participate, which covers 5 participating or successful businesses survey and analysis costs. companies get a and organizations, a great comPlete emPloyer QueStioNNaire spreadsheet detailing workplace experience is not a luxury describe your company’s results of employee 2 surveys and a transcript but a key competitive advantage. engaged, policies, practices, benefits and f demographics. of written employee appreciative employees are not exceptions but staples comments (both anonymous) Share emPloyee SurVey With of highly effective workforces and the result of deliberately as well as a benchmark report Staff Gauge your employees’ progressive human resources strategies. 3 allowing companies to compare workplace engagement and Arkansas Business wants to help you maximize your themselves to the cumulative satisfaction with anonymous organization’s most valuable resource, its people, and make results of all companies that “this is not a popularity surveys. this can be completed participated in the arkansas best yours one of arkansas’ best places to work. online or on paper forms. this is not a popularity contest. this is not just another places to work program. contest. this is not just eNtraNtS are Scored best earN recoGNitioN Arkansas awards program. this is an opportunity to gather detailed data Companies Group scores and 4 Business will honor in a special about your employees and give your organization a chance another awards program. ranks companies based not 6 edition companies with scores to earn recognition that will create organizational pride and only on scoring algorithms worthy of the valuable marketing and recruiting advantages. but also employee this is an opportunity best places comments and Arkansas Business has partnered with the internationally to work label. information provided renowned best Companies Group to offer you this unique to gather detailed data non-winning in the employer evaluation of your workforce. and while the evaluation tools companies questionnaire. are sophisticated, the process is not. about your employees and will not be please join us for this unique opportunity to better your announced. workplace. improve your workforce.”

sponsored by: in partnership with: Visit arkansasBusiness.com/BestPlacestoWork. or contact allyson Pittman at [email protected] or at (501) 372-1443 x336. Why you Should how to create ParticiPate 1. Valuable Employee Feedback Report 2. Heightened Organizational Pride 3. Public Relations, Marketing a Best Place & Recruiting Advantages to Work hoW it WorkS register at arkansasBusiness.com/BestPlacestoWork SiGN uP there is a nominal fee receiVe aSSeSSmeNt 1to participate, which covers 5 participating or successful businesses survey and analysis costs. companies get a and organizations, a great comPlete emPloyer QueStioNNaire spreadsheet detailing workplace experience is not a luxury describe your company’s results of employee 2 surveys and a transcript but a key competitive advantage. engaged, policies, practices, benefits and f demographics. of written employee appreciative employees are not exceptions but staples comments (both anonymous) Share emPloyee SurVey With of highly effective workforces and the result of deliberately as well as a benchmark report Staff Gauge your employees’ progressive human resources strategies. 3 allowing companies to compare workplace engagement and Arkansas Business wants to help you maximize your themselves to the cumulative satisfaction with anonymous organization’s most valuable resource, its people, and make results of all companies that “this is not a popularity surveys. this can be completed participated in the arkansas best yours one of arkansas’ best places to work. online or on paper forms. this is not a popularity contest. this is not just another places to work program. contest. this is not just eNtraNtS are Scored best earN recoGNitioN Arkansas awards program. this is an opportunity to gather detailed data Companies Group scores and 4 Business will honor in a special about your employees and give your organization a chance another awards program. ranks companies based not 6 edition companies with scores to earn recognition that will create organizational pride and only on scoring algorithms worthy of the valuable marketing and recruiting advantages. but also employee this is an opportunity best places comments and Arkansas Business has partnered with the internationally to work label. information provided renowned best Companies Group to offer you this unique to gather detailed data non-winning in the employer evaluation of your workforce. and while the evaluation tools companies questionnaire. are sophisticated, the process is not. about your employees and will not be please join us for this unique opportunity to better your announced. workplace. improve your workforce.”

sponsored by: in partnership with: Visit arkansasBusiness.com/BestPlacestoWork. or contact allyson Pittman at [email protected] or at (501) 372-1443 x336. 16 November 12, 2012 Arkansas Business OVERVIEW

and it's spread throughout the Apartment county," Webster said. "The jury is still out on how many of them Pulaski County Market: Units will hit their rent levels. I'm not Apartment talking about filling up their Occupancy apartments. I'm talking about Keep Coming getting the rental rates they 1985-2011 were expecting." 1985 89.0% And Leasing 1986 86.0% 1987 82.0% Continued From Page One Northwest Arkansas The apartment market in 1988 86.8% w Less than a mile south, Benton and Washington coun- 1989 91.4% site work is under way for The ties has fared well in the post- 1990 92.5% Villa at River Pointe Drive in bubble recovery, with occu- 1991 93.4% Maumelle, a 216-unit project by pancy rates ranging from 90.8 1992 94.4% Little Rock's Monde Group. percent in Springdale to 97.1 1993 95.7% w The first units of The Pointe percent in Rogers. 1994 95.1% at Brodie Creek in Little Rock “I think rental rates are 1995 95.0% will start leasing in January. Construction should start soon on boat slips for John Burkhalter’s marina- trending slightly upward,” said 1996 93.9% [PHOTO BY MICHAEL PIRNIQUE] First-phase construction of residential project in downtown Little Rock. Brian Donahue, senior asso- 1997* 92.9% 168 units should be complet- ciate at the Tulsa office of the 1998 91.9% ed in March, and North Little commercial real estate services Rock's RichSmith Development giant CBRE Group Inc. 1999 92.3% expects to begin construction of Pulaski County Apartment Market “Occupancies are holding 2000 94.4% 168 or 192 units in the summer. (Mid-Year 2012) pretty firm. The market has 2001 93.7% w The first of 258 units at Park Avg. Avg. been fairly strong. Overall, it’s a 2002 94.1% Avenue Lofts in midtown Little Unit Monthly Rent positive outlook on where things 2003 93.9% Rock, a development by Lang Project Age Occupancy Size Rent Change* are and where things are going. 2004 93.8% Partners of Dallas, are expected Post-2000 (4,599 units) 95.8% 961 SF $841 0.8% “Transaction volume has 2005 93.8% to come on line early next year. 1990s (2,758 units) 97.4% 898 SF $747 -0.8% been slower to date. But it 2006 92.6% "During the next two years, 1980s (6,347 units) 94.5% 813 SF $674 -2.0% wouldn’t surprise if a few deals 2007 92.3% more than 1,300 units will be Pre-1980 (9,477 units) 91.0% 846 SF $609 0.8% closed before year-end.” 2008 92.2% added each year," said Richard Jerry Webster is bullish on Total (23,181 units) 93.7% 866 SF $689 -0.3% 2009 91.5% Cheek, partner in Little Rock's *Since Dec. 31, 2011 the northwest apartment mar- Multifamily Group LLC. "It's ket. 2010 93.6% pretty impressive when you Source: The Multifamily Group LLC of Little Rock “I do a lot of work up there, 2011 93.1% have the upper tier of the apart- and I love the market,” Webster *1997 data extrapolated from ment market running at 96 per- "Leasing is good," said Am- of Smokey Lane and 46th Street said. “It has really stabilized. trend 1996-1998. cent occupied." ber Davis, property manager of in North Little Rock should be People make the mistake of Source: The Multifamily Group LLC of Developers are investing Riverside at Rockwater. "We're completed by December. Plans looking at that as one market. Little Rock millions of dollars, attracted at about 40 percent leased.” call for a second phase with 96 There is a distinct difference in by a market that absorbed a In west Little Rock, The units by late summer 2013. the three submarkets between healthy dose of new units while Ridge at Chenal Valley brought "The lease rate is on a sky- Fayetteville, Springdale and cent in its two largest cities. midyear occupancy tightened 312 units to the market, and half rocket path," Burkhalter said of Bentonville-Rogers.” “Get ready for some new to 93.7 percent. of the 260 units at Chenal Pointe the project. "No one has served Enrollment growth at the construction in Bentonville- "No surprises," said Jerry at the Divide are open for leas- the Class A market over there." University of Arkansas is driv- Rogers,” Webster said. “That Webster, president of Little ing, with finishing work on the The North Little Rock busi- ing development of $150 mil- market has gotten pretty solid.” Rock's Webster Corp., an apart- balance on track for completion nessman's grand marina-resi- lion worth of privately owned He won’t be surprised to see ment broker. "Historically, Pu- by year's end. dential project in downtown student housing near the sales activity pick up as the mar- laski County has been a stable Phase two of John Burkhal- Little Rock should start con- Fayetteville campus. ket has tightened and the num- market. We don't have wild fluc- ter's Fountaine Bleau Apart- struction on 150 boat slips in One 632-bed project, The ber of bargain deals from devel- tuations like other markets. We ments added 144 units when it the next few weeks. Grove, opened in August, and opers gone bust has dwindled. seldom have an oversupply." was completed late last year in Plans for The Residence at three more projects are under “The northwest Arkansas Among the newest market- North Little Rock. Framing work Harbortown call for construc- construction that could bring market got overbuilt five years rate apartments to open is Riv- is in progress on phase three, tion to begin in the spring on 192 another 1,983 beds on line for ago, but they’ve worked through erside at Rockwater in North which encompasses another 144 apartments, with one- and two- the 2013-14 school year. those problems,” Webster said. Little Rock. Post Investment units and a second clubhouse. bedroom floor plans. This $35 Benton County is poised “We’ve finally got all the bot- Group of Los Angeles opened The opening 120-unit phase million first-phase development for a new round of apartment tom fishers out of the market, the 264-unit project near the of Burkhalter's Fountaine Bleau should be completed in 2014. development as occupancy has the ones looking for foreclosed River Trail in June. North at the northeast corner "We have new construction, climbed to more than 96 per- properties.” n

Northwest Arkansas Apartment Market “It appears our prediction of new construction spurred by a near 5 percent vacancy rate in northwest (Mid-Year 2012) Arkansas has not yet come to fruition with very few new traditional multifamily developments planned or under construction. Occupancy “The opposite can be said for the abundance of student housing planned and under construction in Rogers (3,822 units) ...... 97 1. percent Fayetteville. (The Grove at Fayetteville opened this fall, bringing 632 new beds to Fayetteville.) In Bentonville (3,643 units) ...... 96 .3 percent addition to The Grove, there are four other student housing developments whose plans, if completed, will Fayetteville (9,622 units) ...... 94 9. percent bring another 2,500-plus beds to Fayetteville in 2013. Springdale (5,189 units) ...... 90 .8 percent “This influx of beds will most likely halt any traditional market rate apartment construction in Fayetteville. “We expect developers will look to the surrounding areas (Rogers, Bentonville, Springdale) to add 22,276 units sampled from an estimated 28,000 total in Benton and units and wait to see what kind of impact this recent student housing construction boom has on Fayetteville and northwest Washington counties by the Tulsa office of CBRE Group Inc. Arkansas as a whole.” — Brian Donahue, senior associate at the Tulsa office of the commercial real estate services giant CBRE Group Inc. The List Arkansas Business November 12, 2012 17 LargestLargest Residential Property Management FirmsFirms Ranked by total number of residential units managed in Arkansas Firm Address No. of Units Phone, Fax No. of Top Arkansas Website, Email Properties Executive(s) Market Area Primary Residential Properties Lindsey Management Co. 20,638 John David Lindsey Benton, Bentonville, Little Rock, North Little Rock, The Links at Fayetteville, Eagle Hill 1200 E. Joyce Blvd., Fayetteville 72703 87 Conway, Decatur, Fort Smith, Jonesboro, Russellville, Apartment Community, The Links at (479) 521-6686, (800) 482-1618 Sherwood, Paragould, Lowell, Marion, Rogers, Texarkana 1 www.LindseyManagement.com Harrison, Fayetteville, Bryant, Searcy, Springdale, Texarkana, Siloam Springs RPM Management Co. 3,394 Robin Miller Little Rock, North Little Rock, Sherwood, Jacksonville, Woodland Heights, Sturbridge, Towne 1501 N. University Ave., Suite 930, Little Rock 72207 247 Pete Hornibrook Maumelle, Russellville, Morrilton, Cabot, Hot Springs, Oaks, South Oaks, Holcombe Heights, (501) 664-7807, (501) 664-0145 Searcy, Ward, Austin Penzel Place 2 www.RPMRealty.com, [email protected] Associated Management Ltd. 2,896 John B. Jackson Pulaski County and 20-plus other cities Country Club Apartments, North Little 3501 Bay Oaks Drive, North Little Rock 72118 30 Rock; Millwoods Landing, Maumelle; (501) 758-2405, (501) 758-9160 Westbridge Apartments and Summerhill 3 www.AMLApartments.com Apartments, Little Rock RichSmith Management LLC 2,625 Belinda Grace Statewide The Pointe at Conway, The Pointe at Hot 9808 Maumelle Blvd., North Little Rock 72113 31 Springs, The Pointe at Texarkana (501) 758-2441, (866) 696-9651 4 www.RichSmithDev.com LEDIC Management Group 2,358B Pierce Ledbetter Pulaski, Crawford, Crittenden, Benton, Carroll, Albert Pike, Bentonville Commons, Alma 2650 Thousand Oaks Blvd., Suite 3100, Memphis 38118 22B Craighead, Baxter, Faulkner, Washington, St. Francis, Gardens, Manor House, The Gambles of (901) 435-7700, (901) 435-7701 Johnson and Sebastian counties Maumelle, Wilmington 5 www.LEDIC.com Henry Management Inc. 1,899 David Deming Henry Little Rock, North Little Rock, Centerton, Morrilton, Westland Heights Apartments, Valley 1400 W. Markham, Suite. 300, Little Rock 72201 18 Fort Smith, Mariana, West Memphis, Van Buren, Heights Apartments, Steeple Chase (501) 219-1700, (501) 219-1750 Helena Apartments, Meadowbrook Park Homes 6 www.HenryCorp.com, [email protected] BSR Trust LLC 1,891 John Bailey Little Rock, North Little Rock, Conway, Hot Springs, Overbrook Apartments, North Little Rock; 105 Tallapoosa St., Montgomery, AL 36104 11 Blytheville Briarwood and Waterford, Little Rock (877) 887-8564, (334) 954-4496 7 www.bsrtrust.com, [email protected] First Capital Residential LLC 1,700 John Shiver Little Rock, Pine Bluff, Hot Springs, Conway, Fort Garden-style apartment properties 425 W. Capitol Ave., Little Rock 72201 21 Smith, El Dorado (501) 374-1603 8 www.FCMGOnline.com, [email protected] Maxus Properties Inc. 1,506 Michael P. McRobert Little Rock, Bentonville, Maumelle Forest Place, The Glen at Polo Park, 104 Armour Road, North Kansas City, MO 64116 7 Northwest Hills, The Landings at Rock (816) 303-4500 Creek, Barrington Hills, Highland Pointe 9 www.MaxusProp.com West Little Rock, Highland Pointe Maumelle Southwest Resources Group Inc. 1,368 Jim Meadows Fort Smith, Arkadelphia, Greenwood, Van Buren, The Flats, Shadowbrook, Shiloah Creek, 6308 Riley Park Drive, Fort Smith 72916 9 Russellville, Beebe, Searcy Forest Oaks (479) 478-6788 10 www.SouthwestResources.com Mid-America Apartment Communities Inc. 1,056 Beth Brock Little Rock Napa Valley, Westside Creek, Calais 6584 Poplar Ave., Memphis, TN 38138 4 Forest, Palisades at Chenal Valley (901) 682-6600 11 www.MAAC.com Marshall Management Co. 950 Don Marshall Little Rock Whisperwood Town Homes, 43 Warren Drive, Little Rock 72209 7 Meadowcrest, Autumn Park, Pine Plaza, (501) 562-9115, (501) 570-0061 Bella Vista, Rosewood, Terra Vista 12 www.MMRentNow.com Greystar 935 Bob Faith Little Rock, North Little Rock, Rogers Chenal Pointe at the Divide, Enclave at 18 Broad St., 3rd Floor, Charleston, SC 29401 3 the Riverfront, Ranch at Pinnacle Point (843) 579-9400 13 www.Greystar.com Specialized Real Estate Group 905 Jeremy Hudson Northwest Arkansas Eco Modern Flats, North Creekside P.O. Box 33, Springdale 72764-0033 6 Apartments, Brookhaven Apartments (479) 927-0003, (479) 927-0004 14 www.SpecializedREG.com, [email protected] Tower Management LLC 866 David Wilson Little Rock, Pine Bluff, Hot Springs, Monticello, Bryant, Levi Towers, The Cottages at Otter Creek, 4915 Central Ave., Hot Springs 71913 10 Jacksonville The Ridgeway (501) 622-3199, (501) 622-3197 15 www.TowerManagementRealEstate.com Sweetser Properties 350 Mike Sweetser Fayetteville Deldonn, Noble Oaks, Willow Creek, 730 N. Leverett Ave., Fayetteville 72701 10 Leverett Townhouses (479) 443-4601, (479) 443-2044 16 www.SweetserProperties.com, [email protected] BH Management Services Inc. 264 Harry Bookey North Little Rock Riverside at Rockwater Apartments 400 Locust St., Suite 790, Des Moines, IA 50309 1 (515) 244-2622, (515) 244-2742 17 www.BHManagement.com Researched by George Waldon and Sources: the firms Roxanne Jones 1 Estimate based on independent research as company failed to reply to multiple requests for information.

Next Week’s List: Largest Crops, Largest Timber Companies • To submit information for an upcoming list, email [email protected] 18 November 12, 2012 Arkansas Business

estate rather than the right to simply use the property. In ‘Fractional Ownership’ Model Miami, the Lovells met David Disick, the man generally cred- ited with coining the term “private residence club.” Disick said the idea of a pri- Attempts to Preserve Mansion vate residence club is similar to that of a country club. Eureka Springs pair “It’s all about luxury and the experience,” said Disick, who market property as also said annual sales in the private residence club luxury fractional segment grew from about $70 million in the By Rob Keys mid-1990s to more than $2 bil- [email protected] lion by 2007. The Queen Anne promises Steve and Lata Lovell poured partners five-star accommoda- seven years and about $10 mil- tions and amenities. While the lion into restoring the Queen architecture and decor reflect Anne Mansion, a museum-like a bygone time, there are mod- model of 19th-century opu- ern luxuries like flat-screen TVs, lence. chef and spa services, a media Now the Lovells are looking room and courtyard bar. for partners to help them take Services will be provided by the Queen Anne into the next a professional staff, including century. an onsite manager, who will “A hundred years from now,” reside in the bottom half of the Lata Lovell said, “we want this adjacent Kelley House. property to still be here.” “It will be like having a fully Through the formation staffed second home,” Lata of the Queen Anne Mansion Lovell said. Preservation Trust — and a sales Disick visited the Queen push launched in early October Anne after meeting the Lovells — the property is being mar- Lata and Steve Lovell, owners of the Queen Anne Mansion, seek partners who are looking for a second home or a regu- and said it was a one-of-a-kind keted as a private residence club. lar retreat. “A hundred years from now, we want this property to still be here,” says Lata Lovell. [PHOTO BY ROB KEYS] property. It sits mere steps away from the “When I first walked in,” he entrance to Eureka Springs’ his- Mo., in 1891. It was built by a overwhelming. A decision was restoration not just in Eureka said, “I had one word and that toric downtown district, and the decorated Civil War veteran made to strip the Queen Anne Springs, but in this area,” Lovell word was ‘Wow.’” Lovells’ idea is to find like-mind- and industrialist, Curtis Wright, to its raw wood and put in all said. Disick also said the growth of ed people looking for a second who owned a furniture factory new mechanical, electrical and northwest Arkansas, including home or regular retreat. in Indiana. Reports indicate plumbing systems. the opening of Crystal Bridges The aim of the trust is even- Wright used the promise of the “We quickly realized there ‘Labor of Love’ Museum of American Art, made tually to consist of 84 equal Queen Anne to help convince were two ways to go about it,” The 12,000-SF Queen Anne, the Queen Anne an appealing ownership interests. The first his wife to make the move to Steve Lovell said. “We could do in fact, opened as a museum option for those interested in 12 currently are available for Carthage, where he eventually it quick, fast and cheap or do it and tour home in 2010 and oper- fractional ownership. $150,000 each. became owner of a mine that properly. We chose to do it prop- ated that way for two tourist “It’s an area that’s coming Once 24 interests are sold, supplied limestone blocks for erly every step of the way.” seasons, attracting more than of age, and that’s what makes owners will have the right to buildings and homes through- That much is evident with 15,000 visitors. By August 2011, Eureka Springs an exciting reserve a minimum of 28 nights out the state. Reports also indi- practically every step one takes however, the Lovells realized venue for a project like this,” of annual use in seven-night cate the 21-room mansion was inside the property. The hand- such a model wasn’t feasible Disick said. blocks. Additional nights will built at a cost of $22,000, and tooled woodwork and finishing given the expense of maintain- Perhaps more than that, be allowed on a space-available became the center of then- throughout the seven suites and ing such a property. though, Disick said, those who basis. booming Carthage’s The trust will be managed social scene. “Buffalo by an elected board of direc- Bill” Cody and author tors and run by professional Harold Bell Wright management that reports to the were among numer- board. The Lovells, who will ous famous guests said own a single interest, believe the to have stayed at the business model could become a Queen Anne. template for preserving historic By the 1980s, how- properties all over the nation. ever, the property had More than that, though, they fallen into disrepair and hope the model will preserve been put up for sale. the storied estate they pur- Eureka Springs busi- chased in 2005. nessman Ron Evans The house originally was constructed in Carthage, Mo., in 1891 and moved piece by piece to Eureka Springs. The 21-room man- “I just loved the property,” later bought the mansion, renovated at a cost of $10 million, features elaborate woodwork and period decor. [PHOTOS PROVIDED] Steve Lovell said. “It was a sion, which was disas- heart thing. It wasn’t a business sembled, numbered piece by parlor areas is stunning, as are the That’s when they traveled purchase partnerships will thing.” piece and transported in 40 furnishings and decorative pieces to Miami to learn more about benefit from the Lovells’ invest- semi-truckloads to its current from the likes of George Henkels, fractional developments, ments of time and money. location. Mitchell & Rammelsberg, which are different from time- “The Queen Anne has been a House History By the time the Lovells took Dresden and Waterford. shares in that purchasers of labor of love for the Lovells, and The Queen Anne originally ownership, the amount of res- “I can say without worry or fractional developments gain you’re going to feel that as you was constructed in Carthage, toration needed was almost boasting this is the best quality an actual piece of the real go through it,” he said. n Arkansas Business November 12, 2012 19

Tracy Ring and Brent Cryder acquired Courts House Berwyn Square Sells the house from Lagniappe Ventures Inc., A 4,400-SF home in The Courts neigh- led by Gary Pursell. borhood of west Little Rock’s Chenal The deal is financed with a 15-year Valley neighborhood drew a $500,000 In $800,000 Transaction loan of $524,200 from Arvest Bank of transaction. Fayetteville. Suman Siddamreddy and Vasuki Dandu A 64-unit apartment complex in The residence previously was linked purchased the house from Trammell southwest Little Rock changed hands in with an August 2007 mortgage of Construction Inc., led by Renee Trammell. an $800,000 sale. $500,000 and an October 2008 mortgage The deal is financed with a 15-year CO5 Properties LLC, led by Andrew of $20,000 held by BancorpSouth Bank of loan of $400,000 from IberiaBank Mort- and Jennifer Adkins, bought the Berwyn Tupelo, Miss. gage Co. of Little Rock. Square project at 6320 Butler Road. The property was purchased in The residence previously was linked The seller is One Bank & Trust of Little October and November 2004 as part of a with a March 2006 mortgage of $496,000 Rock. $330,000 transaction. held by Little Rock’s Bank of the Ozarks. The deal is funded with a 3.5-year The sellers were John Bowling, The location was bought for $72,000 loan of $1.25 million from the bank. $165,000; Mary B. Keating, $99,000; and in October 2005 from Deltic Timber Corp. One Bank recovered the property from Elizabeth Bowling, $66,000. of El Dorado. Kevin Tull and Patricia Tull in September 2011 at an $852,780 foreclosure sale. The 2.26-acre development previous- Real Deals Witry Residence Courtyard Construction ly was tied to an August 2009 mortgage of A 4,795-SF home in the Witry Court Construction of a 98-room Courtyard $706,808 and an October 2008 mortgage George Waldon neighborhood of west Little Rock’s by Marriott in North Little Rock is in of $146,000 held by One Bank. [email protected] Chenal Valley development rang up a motion with a $7.2 million funding The apartments were acquired for $575,000 deal. agreement. $800,000 in August 2002 from Berwyn Construction of a Dollar General Angela and C.S. Aduddell bought the Shree Jalaram Bapa Associates, led by Square Properties LLC, led by Alta Hale. store is backed with a five-year loan house from Mark and Susan Freeman. Jitendra Patel, obtained the 18-month of $1.04 million from Summit Bank of The deal is funded with a 15-year loan of loan from Farmers Bank & Trust of Arkadelphia. $417,000 and a five-year loan of $100,500 Magnolia. Retail Redevelopment Twilight Enterprise bought the prop- from Metropolitan National Bank of Little The former Circuit City location at A former Rally’s location in North erty for $730,000 in June 2003 from Rock. 4339 Warden Road previously was tied to Little Rock is undergoing redevelopment Pentland USA Inc., led by Nahum Shar. The residence previously was tied to a December 2009 mortgage of $750,000 after a $424,000 transaction. a May 2011 mortgage of $155,986 and a held by First Arkansas Bank & Trust of PB General Holdings (Camp Robinson) June 2011 mortgage of $391,000 held by Jacksonville. LLC, led by Scott Proctor, purchased the Hillcrest Home Regions Bank of Birmingham, Ala. The 3.01-acre property was acquired 4523 Camp Robinson Road property A 3,457-SF home in Little Rock’s The Freemans acquired the property for $1.45 million from CC Acquisitions from Twilight Enterprise Ltd. of Salt Lake Hillcrest neighborhood is under new for $544,000 in March 2002 from Randall Ltd., an arm of New York Life Insurance City. ownership after a $656,000 sale. and Kelley Standard. Co. n

Stephens Capital Partners of Little Rock is the majority owner of Halifax. City Wire Adds Staff Halifax owns 36 newspapers in six states. The City Wire, the online-only news 10 freelancers. Dem-Gaz Job Changes source based in Fort Smith, recently According to TheCityWire.com, The The recently emptied job of Bill added staff to expand its coverage of City Wire has a staff of nearly 20 people, Simmons, the Arkansas Democrat-Gazette northwest Arkansas. including at least five freelance and part- political editor of 16 years who died Oct. The City Wire hired Julie Bagley, time employees. 29, has been filled by Frank Lockwood. who has worked in advertising, market- Lockwood previously served as reli- ing and TV news, to coordinate cover- Halifax Sells Former gion editor while also overseeing the age of events and the arts in northwest Dem-Gaz’s Washington, D.C., bureau. Arkansas. Jamie Smith was also hired to Times Co. Papers Outtakes He will continue to serve as editor for the report on breaking news and arts and Halifax Media Group, the Daytona Washington bureau. entertainment in northwest Arkansas. Beach, Fla., media company with partial Kate Knable Religion reporter Christie Storm The media company also hired Arkansas ownership, has agreed to sell [email protected] replaced Lockwood as religion editor. Peggy Knight to work in marketing and three of its 2012 acquisitions. Simmons, 71, was still working three sales. Much of Knight’s past experience Halifax is selling the daily Santa The deal is expected to close this days before he died. came from working for Sam’s Club, Rosa Press Democrat and the North month, but the media companies have The Dem-Gaz is also searching for a division of Wal-Mart Stores Inc. of Bay Business Journal and The Petaluma not disclosed financial details of the a replacement for Rachel Chaney, who Bentonville. Argus-Courier, both published weekly, to agreement. leaves her position as High Profile edi- Michael Tilley, editor and president of Sonoma Media Investments LLC. All three Halifax bought the three papers last tor to become communications direc- City Wire owner TCW Media, declined to publications are in California. The Press January from the New York Times Co. as tor of the Arkansas Children’s Hospital discuss his plans for growing the media Democrat’s circulation is 53,770 daily part of a 16-publication purchase. Foundation in December. company or how many employees he has and 59,000 on Sunday. “Sonoma Media is funded by inves- hired this year. tors who live in the community and However, the recent hires are in line care about their local newspaper,” said Smith Launches Digital Mag with comments about Halifax CEO Michael Arkansan and home and garden his plans that he made Redding in a press designer P. Allen Smith last week released to Arkansas Business in release. “Considering the first issue of a new digital magazine. December. At the time, 90 percent of our P. Allen Smith’s Garden Home Style Tilley said he wanted to company is based in launched Tuesday. The quarterly publi- expand The City Wire’s the Southeast, it makes cation is seasonally themed and provides northwest Arkansas cov- geographic sense for ideas for home and garden designs. erage and hire up to three Sonoma Media to own The digital magazine is available for full-time writers and about the business.” free at PAllenSmith.com. n 20 November 12, 2012 Arkansas Business Matt Bell to Open OA Arkansas Restaurant Business 24/7 On S. Main Your weekly Arkansas Business habit is now a daily addiction. On the web, on Facebook, on Twitter, on Today’s THV and in your inbox, Arkansas Business keeps you informed with up-to- Capital Hotel sous-chef Matt Bell is the minute Arkansas business news. creating a new Southern restaurant associated with The Oxford American maga- Leaders Follow zine. Restaurants If all goes as planned, 12,800 Twitter followers and growing! Join the conversation with @ Kate Knable ArkBusiness on Twitter. Get breaking news headlines and links to the the restaurant will open latest news and commentary on business in Arkansas. Plus: Like us in February inside the [email protected] on Facebook at Facebook.com/ArkansasBusiness. bar side of the former Juanita’s Cafe & Bar at “His philosophy is very much in line 1300 Main St. in Little with what we want to try to accomplish Rock. with the restaurant, which is to showcase Follow Arkansas Business Matt Bell’s restaurant, the true depth and breadth of Southern personalities on Twitter. Bell South on Main, will take culinary culture,” Sabin said of why the Get breaking business news and up about 3,000 SF of the first floor and OA is working with Bell. “When I first analysis with a personal touch. will seat about 80 people. The facili- started talking to Matt, I told him I want- ty also houses the OA’s administrative ed the menu to be an educational experi- offices. ence for the diners.” Editor Interactive Editor The OA is renovating the downstairs space for the restaurant and is moving Gwen Moritz Lance Turner Late November Opening @gwenmoritz @LT the old Juanita’s stage from its corner Planned for Montego spot to a more central position across Most Read Stories of the Week from the bar. Montego Cafe is slated to open in the OA publisher Warwick Sabin said the former Porter’s Jazz Cafe during the week ArkansasBusiness.com’s most popular stories for the week ending Nov. 8: restaurant facility’s memorable features, of Thanksgiving at 315 Main St. in Little such as the tin ceiling and the bar, will be Rock. 1. Arkansas Razorbacks Football Coach John L. Smith’s $40M Mistake preserved while the space is improved. You may recall that Not reading contracts may lead to Smith paying for debts other than his own. South on Main’s stage will serve as a Montego is the restau- 2. Three Arkansas Counties Go ‘Wet’ regular venue for cultural programs such rant that Brad McCray Benton, Madison and Sharp counties approve alcohol sales in election. as musical performances, literary read- of Little Rock is putting 3. Who’s Winning Electoral Map of Presidential Race (AP Analysis) ings, cooking classes and film screen- together. AP looks at where the 270 electoral votes for White House win will be won. ings. Montego will be a 4. Special Audit Examines Material Accounting Error at One Bank & Trust The business arrangement between Caribbean restaurant. It $10.6M lost in third quarter call report due to “material accounting errors.” the OA and Bell is a partnership, with Brad will serve food like jerk Bell owning the restaurant. However, the McCray chicken, curry shrimp The New ArkansasBusiness.com restaurant will be “a true extension of the and Jamaican beef patties, as well as ArkansasBusiness.com now boasts an all-new magazine,” Bell said. drinks like Jamaican rum punch and design and new features to keep you up-to-date As it is for the OA, which calls itself other island rum favorites, McCray said. with the latest Arkansas business news and “the Southern magazine of good writ- “We’re really looking to bring some- data. Get the latest in-depth research in our ing,” a goal of the restaurant will be thing that’s really unique to the area,” Trends & Analysis section. Keep up with Arkan- to educate people on and preserve he said. sas people and companies on The Whispers Southern culture. Montego will host live musicians, Blog. And as always, access the latest print edi- Bell is from Montana, but he married including reggae artists and steel drum tion, get daily breaking business news with the an Arkansan and deepened his appre- bands. The style will fuse “House of free Daily Report e-newsletter, download lists, ciation for Southern food culture while Blues and Margaritaville,” McCray said. search the news archive and more. interacting with his wife’s family, work- The restaurant’s decor will include ing for the Capital Hotel’s restaurants painting on burlap by Pine Bluff art- and meeting Southern chefs. ist Ariston Jacks. The 10,250-SF building Living Large “I’ve never seen people with so many will seat about 70 on its street-level floor family recipes. It’s really exciting, as and offer additional overflow seating Go to ArkansasBusiness.com/Lists and fi nd this week’s of the Largest Residential Property Managers. Search the archive for somebody who does food profession- downstairs. past lists while you’re there and download a PDF version for ally, to see people that connected and McCray, 29, said he had about 15 free or get a spreadsheet version. Plus sign up for the weekly that excited about where their recipes years of restaurant experience. His past, Real Estate eNewsletter, keeping you up to date on the latest come from,” Bell said. “You can take now closed, private ventures include happenings at ArkansasBusiness.com/eNews. these recipes and lay them out like a bar, grill and dance club On the Rocks family tree. I think that’s so unique to and caterer Strictly Catering, both in the South.” Little Rock. He co-founded and owns South on Main’s cuisine will come Bear’s Den Pizza in Conway. McCray has from regions across the South to “give also worked for the past two years in Soirée People & Proﬁ les people a tour of the South through the commercial real estate. Each month’s issue of Soirée is available online. This month, food,” Bell said. Menu items will include Porter’s floundered at 315 Main, meet the team of passionate philanthropists who turned frogmore stew, pickled shrimp and Texas apparently struggling to pay its rent and three small agencies into one rock solid nonprofi t that serves barbecue. taxes and, at one point, losing its alcohol Arkansas children and families. Catch up on the latest fundraiser South on Main will have a casual permit. pictures, a holiday gift gallery, scrumptious provisions and the atmosphere, without tablecloths and Porter’s originally opened in always-popular “A Day In Little Rock” series. Find it all at Lit- waiter uniforms, but will offer refined September 2011 and closed in April. tleRockSoiree.com. versions of Southern foods and upscale Augusta Farver Jr., Milton Shannon and service, he said. Marcel Dean owned Porter’s. n Arkansas Business November 12, 2012 21

a lot of things one needs to know and do to grow a business. Arkansas “Having a specialist in each Kudos of those departments to train Arkansas businesses Business you in the franchise system makes all the difference in the receive recognition world when you’re trying to run your own business,” Williams w Sparks Regional Medical Ventures said. Center in Fort Smith has re- Throughout the process ceived the Arkansas Medicaid Submit story ideas to ArkansasBusiness.com/Submit_Contact.asp of purchasing the franchise, Inpatient Quality Incentive which took him about six award from the Arkansas months, Williams said, he has Department of Human New Franchise already learned what it would Services, the Arkansas have taken him 20 years to learn Foundation for Medical through trial and error. Care and the Arkansas The Grounds Guys franchise Hospital Association. “This fee was $30,000, and although is a reﬂ ection of our commit- Williams already had most of ment to put patients fi rst,” the equipment he needed, he said Melody Trimble, CEO of said, he spent an additional Sparks Health System in Fort $25,000 for branding, advertis- Smith and Summit Medical ing and other items such as uni- Center in Van Buren. “I’m proud forms. of our associates. It takes a lot Currently, Williams has two of work by a lot of people to employees and works out of his be recognized for quality care home, but depending on sales again.” volume, he said, he hopes to add another four employees and w ABF Freight System Inc. find an office space this spring. of Fort Smith has been ranked In five years, Williams said, he among the Top 100 Motor would like to see a shift in the Freight Carriers for 2012 by In- makeup of his clients to 70 per- bound Logistics magazine. Danny Williams of Conway recently purchased a franchise from the Grounds Guys to help cultivate commercial clients cent commercial, and he hopes for his existing business, One Source Lawn & Landscape Maintenance LLC. [SUBMITTED PHOTO] to open another Grounds Guys w The University of Arkan- franchise in the Jacksonville- sas at Little Rock William Cabot area. H. Bowen School of Law Landscaping Business Owner His advice to new business has been named to the Top owners is something he said he Five Law Schools for Black Stu- has always tried to do himself: dents in the Southern region by Aims to Grow With Franchise “Watch how other successful On Being a Black Lawyer, people do things and try to put a blog and media company. As a soon-to-be new father, balance things out a little bit,” commercial landscaping, could as many of those things into The ranking was based on cost Danny Williams, 28, of Conway Williams said. help make a difference. practice as possible.” of attendance, employment said he was looking for a way to Most of his existing cli- “Most people think if you “And from day one use an placement, alumni, selectivity, raise his 3-year-old landscaping ents from One Source Lawn & can do the work and you can do accountant, because a good black student population, cost and lawn-care business to new Landscape Maintenance LLC it well, then you can own and accountant is worth his weight in of living, legal job access and heights, so in August he pur- were residential, so he knew operate a business effective- gold.” Williams said his accoun- black population in the area. chased the Grounds Guys fran- he needed a better mix. But he ly. That’s definitely not true,” tant is Harwood Ott & Fisher in “Our achievement in bringing chise serving Faulkner County. needed some help breaking Williams said. “I’ve learned that Conway. “They’re terrific.” diversity to our school and the “After working in my busi- into the commercial landscap- there are a lot of business sys- For more information or to legal fi eld is a part of Bowen’s ness for a few years and realiz- ing business, and that’s where tems you need to put in place book services, call (501) 513-7576 dedication to providing access ing it took every ounce of energy Williams thought the Grounds and really stay on top of.” or visit Conway.GroundsGuys. to justice to underserved popu- and time that I had, I was look- Guys franchise system, with its From financials to accounts com. lations,” Interim Dean Paula ing for something to help me specialization in high-end and management, he said, there are — Jennifer Ellis Casey said. “We’re proud of being named to this prestigious list because it incorporates MORE ON THE WEB: some of the things we’ve al- Business Calendar: The Week Ahead For additional calendar items, or to submit ways been known for — among items: ArkansasBusiness.com/calendar them our location in Arkansas’ capital city and our cost-eff ec- Tuesday Wednesday Th ursday Saturday Monday tive tuition for students.” November 13 November 14 November 15 November 17 November 19 w AEDC Grant Application National Philanthropy Small Business DIY: A Toolbox for Self- Preservation The University of Workshop. 1:30-3:30 p.m. Day. 11:30 a.m.-1:30 p.m. Resource Expo. 8 a.m.-5 Publishing. 10 a.m.-noon. Conversations: Tax Central Arkansas’ Division Heber Springs Community Peabody Hotel, Little p.m. Kay Rodgers Expo Thompson Public Library, Credits. 5-6:30 p.m. Curran of Outreach & Community Center, 201 Bobbi Jean Rock. $50. (501) 607- Building, Fort Smith. Free. 38 Rahling Circle, Little Hall, 615 E. Capitol Ave., Engagement and Community Lane. (501) 682-1211. 0954. (479) 782-4693. Rock. Free. (501) 617-6677. Little Rock. Free. (501) Development Institute-Central 371-0075. have received Governor Quality Facebook: Profiles, Defending DWI Cases. Challenge Awards from the Pages & Privacy. 1-4 2-4:15 p.m. Arkansas Bar Arkansas Institute for Perfor- p.m. Reynolds Center Center, 2224 Cottondale for Business & Economic Lane, Little Rock. (501) mance Excellence. The award Development, UALR. $40. 375-4606. recognizes organizations that (501) 683-7700. have made a measurable diff erence in performance excellence. n 22 November 12, 2012 Arkansas Business

Math Arkansas It’s the Trend Nerds Rule Business Line, Stupid

EDITORIAL he pattern I noticed in last week’s Views election was this: Patterns matter. ate Silver, the nebbishy statisti- TAnd politicians who can recog- cal genius who conquered poker, Arkansas Business’ Opinion Page nize and exploit patterns win. Nbaseball and then politics, was Mitt Romney’s campaign ran on the the man of the hour on Tuesday. While factored in economic data — unemploy- same slogan that was successful for Bill Editor’s Note the biggest names in conservative pun- ment, GDP, housing sales. He turned Clinton in 1992 (“It’s the economy, stu- ditry — George Will, Peggy Noonan, skeptics into believers and rendered his pid”) and planned for the same type of Gwen Moritz Rush Limbaugh — were predicting a critics speechless. Nothing succeeds like voters who were successful for George Romney victory to the end and the most clear, supportable, statistical success. W. Bush in 2004, while the Obama cam- [email protected] familiar names in polling were still con- Consider similarly how accurate paign had its eye on the demographic cerning themselves with national sur- the predictions of “superstorm” Sandy trend line and worked hard to turn out didn’t alienate black voters. veys, Silver’s proprietary formula for turned out to be. As Silver himself notes the voters who could deliver a victory, Now, Arkansans who were shocked distilling meaning from thousands of in his new book, “The Signal and the despite the weak economy. to see Obama very nearly run the table data points predicted the winner in 49 Noise,” hurricane path predictions are While running on the economy — among swing states can be forgiven. states and the District of Columbia. And three times more accurate now than they which is and always shall be the No. 1 issue Outside Pulaski County, Fayetteville and if President Obama maintains his paper- were 20 years ago. Haven’t we all come to for American voters — the Romney camp a few parts of the Delta, it was hard to find thin lead in Florida, Silver will be 51 trust the weather predictions more than didn’t talk about trend lines. They wanted anyone who supported President Obama. for 51. (He even predicted the paper- we used to? More data, better predic- to talk in snapshots — the unemployment But Arkansas doesn’t look like the rest of thin lead, giving Obama a 50.3 percent tions, less wasted effort. rate is high now, the price of gasoline is America. Arkansas has one of the low- chance of winning the Sunshine State.) Few businesses short of Wal-Mart high now, unprecedented numbers are est concentrations of black voters of any Taking the results of multiple “sci- have as many data points to help inform now on food stamps. Southern state, and our Hispanic popula- entific” polls and coming up with an decision-making and planning as Nate But even the Romney camp recognized tion is small compared with that of Florida average is relatively simple. But Nate Silver and meteorologists have to work that the economic recovery has been gain- and Texas. The demographic oddity is Silver looked back at the accuracy of with, so instinct and “gut” are still ing steam slowly and hoped to get credit not that Arkansas backed the Republican the individual pollsters in previous elec- important — especially, it seems, in the for it: Romney repeatedly promised he candidate by a 24-point margin but that tions and gave their findings the weight softer science of choosing human capi- could create 12 million jobs in four years, Arkansas had remained Democratic on they deserved. He calculated the typical tal. But the events of the last couple of but that’s what Moody’s Analytics predicts the state level as long as it had. “bounce” from things like party conven- weeks make us respect the gifted statisti- the recovering U.S. economy will produce And that trend line was also on full tion speeches and candidate debates. He cians more than ever. n by 2016 no matter who is president. And display last week. As smarter political the recovery of the job market will help observers than I have already noted, with the federal deficit and the cost of the our state has jumped on the Republican social safety net, no matter who is in the bandwagon just as the rest of the country STAFF DIRECTORY Oval Office, just as President John McCain has started to jump off. (Suspect nation- would have similarly presided over high al polls that “oversampled” Democrats Chip Taulbee SPECIAL PUBLICATIONS ADMINISTRATION Associate Publisher unemployment and ballooning food turned out to be correct.) Editor Gwen Moritz Editor, Soirée Jennifer C. Pyron Accounting Manager Hal Lammey Art Director Wayne DePriest Managing Editor, Soirée Accounting Assistant Kim Clark stamp rolls had he been elected in 2008. Tuesday was historic for Arkansas Amanda Hoelzeman Human Resources Bill Page (The inevitable recovery — assuming Republicans — they captured all four EDITORIAL Editor, Little Rock Family Heather Bennett Executive Assistant Christine Harris all concerned can avoid the “fiscal cliff” seats in the U.S. House of Representatives Managing Editor Jan Cottingham Consumer Publications Editor Lindsay Irvin Digital Media Assistant Mary McLachclan — is also the reason that Bill Clinton and will control the state Senate and Interactive Editor Lance Turner Consumer Publications Assistant Editor could confidently tell the Democratic probably the state House for the first Senior Editors Chris Bahn, Mark Friedman, Sam Smith George Waldon National Convention: “If you will renew time since Reconstruction. But even Database Administrator Assistant Editors Luke Jones, Kate Knable Alex Graham the president’s contract, you will feel it. those gains were a continuation of a Editorial Intern Jennifer Ellis Sales Manager, Little Rock Soirée You will feel it.”) trend that was undeniable in 2010. If Managing Editor, Business & Sports Graham Cobb How much the typical American voter anything, Tuesday may have been some- Todd Traub Special Pubs Senior Account Executives understands about economics may be thing of a disappointment for the GOP in InArkansas.com Editor Karen Martin Tasha Amos, Betsy Tilley Chairman & CEO beside the point. The typical American Arkansas because the Republican domi- Olivia Myers Farrell Assistant Interactive Editor Account Executives voter is changing. The Republican ticket nation wasn’t more complete. Tre Baker Michelle Brand, Haley Dearman, Luci Deere, Chief Operating Officer Innovate Arkansas Editor Mark Carter Katie Fortenberry Peek, Brandy Hubener, Chuck Ballard still had strong support among white But before you conclude that Arkansas Online Calendar Editor Blair Tidwell Jamie Mabry Chief Information Officer voters nationally (59 percent, according is becoming more conservative in every Brent Birch to exit polls) and even stronger than that way, take note of some other trends: Researcher Roxanne Jones DESIGN Consumer Publications Publisher w Multimedia Producer Trent Ogle Production Manager Tona Jolly (about 65 percent) among white males. There is a limit to the right-wing nut- Rachel Bradbury But only 72 percent of voters were white, tery that Arkansans will accept. A typi- SALES & MARKETING Senior Art Director Irene Forbes Business & Sports Publications Publisher Vice President of Business Sales Art Directors Chip Taulbee and 59 percent of 72 percent isn’t enough cally moderate Arkansas Democrat is John Atkinson, Dean Wheeler, Waynette Traub Bonnie Jacoby Interactive Editor to win. Obama slaughtered Romney still preferable to the likes of Loy Mauch,

Senior Account Executives Advertising Art Directors Lance Turner among voters who aren’t white and beat Jon Hubbard and Charlie Fuqua. Rosemary Bruton, Rebecca Patton Marcus Boyce, Erin Lang him handily among voters who don’t w Three more counties — Benton, Account Executives Digital Operations Specialist Greg Churan, Neil Gray, Rebekah Eveland happen to be male. Madison and Sharp — decided to "go Lee Major, Carrie Sublett Republican strategists who had wet," accelerating a trend that began with Advertising Coordinators CIRCULATION apparently believed that the historic Marion County in 2006 and continued Bekah Caraway, Circulation Manager Dana Meyer turnout among young and minority vot- with Boone and Clark counties in 2010. Kristen Heldenbrand, Alissa Mathews Circulation Coordinator Cara Gieringer ers who supported Obama in 2008 was w The medical marijuana proposal Marketing Manager Allyson Pittman FLEX360 some kind of fluke were doing serious came surprisingly close to passage on Marketing Coordinator WEBSITE DEVELOPMENT soul-searching on Wednesday. Those its first try, and I suspect a better crafted Bethany Johnson Director Brent Birch voters may have stayed home for the referendum would have won. Put that in Interactive Marketing Director 122 E. Second St., Little Rock, AR 72201 Interactive Creative Director Mike Ortega mid-term election in 2010, but they can your pipe and smoke it. n Jake Sligh Senior Web Designer Lance Corder (501) 372-1443 Fax: (501) 375-7933 Social Media Coordinator Lauren James clearly be mobilized by a candidate who Senior Web Developers ArkansasBusiness.com ● abpg.com Marketing Assistant Denise Brockinton Alex Chalupka, Chris Earls, Jonathan Peoples © Copyright 2012 targets them. Even Obama’s support of Gwen Moritz is editor of Arkansas Advertising Assistant Stacy Levy Interactive Traffic Manager Zack Hill Arkansas Business Limited Partnership same-sex marriage (another national Business. Email her at GMoritz@ABPG. trend that can’t be denied or ignored) com. VIEWS Arkansas Business November 12, 2012 23

named storms have rolled off to the east, so storm-related losses Sandy Had It All have been minimal and carriers have had time to strengthen t’s me again. And that’s not mechanical apparatuses below inches per decade. It takes less their balance sheets. Industry good — at least in this space. street level, fire, massive power of a storm surge now to overtake capital is strong. Property IAfter my reviews of 9/11, the outages and mold, fungus and Manhattan and those Eastern insurance rates are going up 8 hardening insurance market of bacteria. She even threw in E. coli. towns than it would have in the to 10 percent, but that was hap- a decade ago and the tsunami She caused chemical spills past. pening before Sandy. in Japan, it’s time to write again. and devastated rat colonies in And the pace of the ris- Sandy was a big, nasty, I hope I can expose some data the subways. She may have even ing water level is expected to tough broad, but she was no that you have not seen or read bought some lottery tickets pass- increase. Three of the top 10 Katrina. My educated guess about. ing through — I don’t know. But highest floods at the Battery on on the total economic impact Sandy had it all. She was as I do know this: We were warned. Manhattan’s southern tip since bill from Sandy is around big as Texas and was truly dev- Scientists and insurance actuar- 1900 have occurred in the last Guest Column $45 billion. This includes astating. She brought severe ies have been writing about the two-and-a-half years. That’s insured losses, uninsured thunderstorms, wind, tornadoes, risk of a hurricane hitting New not good. Even worse, the num- Andrew Meadors losses, business-interruption lightning, storm surge, horrific England for several years now. ber of named Atlantic storms [email protected] losses and flood claims to flooding, saltwater corrosion of Population times property val- is jumping. The annual aver- the national flood insurance ues equals the age is 11, but Sandy’s first initial graded to a tropical storm before plan. big one. They means she was the 19th storm landfall, so the insurance-buy- With the exception of droned away. of 2012. The past two years have ing public caught a break. Only the memories of loved ones And now, it has been similar, bringing 18 and 19 about 13 percent of the public who didn’t survive the storm happened. named storms. has federal flood insurance. and aftermath, it will all be Of all my New York is looking at the That number will go up now. cleaned up, rebuilt and forgot- research, this possibility of spending billions Consumers need regular prop- ten. is the most of dollars on a series of complex erty coverage and flood insur- Until it happens again. n alarming data I “sea-gates” to protect the bor- ance. The last thing you want at came up with: oughs. City officials up there a time of disaster is an argument Andrew “A.B.” Meadors is It was the big- have their hands full. as to whether it was wind or a certified risk manager and gest flooding I was glad to see that officials water that leveled the house. 25-year veteran of the insurance in New York in states affected demanded agency business in Arkansas. He Hurricane Sandy brought serious flooding to these since the 1960s. that insurers not invoke higher is a partner in the firm Meadors buildings in the Sheepshead Bay neighborhood of Water levels deductibles sometimes imposed The Good News Adams & Lee. Brooklyn at the end of October. [PHOTO BY ANTON OPARIN/ in the Atlantic for wind or hail damage. The insurance industry can He can be reached at AB@ SHUTTERSTOCK.COM] are rising 1 to 2 Hurricane Sandy was down- easily handle Sandy. Most of the MeadorsAdams.com.

FEEDBACK USDA School Meal

Standards YOUR COMMENTS FROM OUR FACEBOOK, TWITTER AND ARKANSASBUSINESS.COMFEED TO THE EDITOR: out the day (student athletes This fall when Arkansas for instance), not all kids are Michael Pakko: Slow Growth Ahead, No Matter Who Is Elected schoolchildren got in line at the linebackers nor should they eat school cafeteria, they had better like one. Parents can send their Taylor Gammill: Slower growth if Obama is re-elected choices than ever before. On the children to school with a snack, David Dinwiddie: FDR was hailed as a hero for fi xing the economy. The Great Depression lasted 9 more years, menu were a variety of foods and others can take advantage then we had a war, then a short depression after the war, then the economy got better. and beverages recommended of after-school snack or dinner David Dinwiddie: It got better after Harry Truman dropped the A-Bomb and FDR was dead. under new USDA school meal programs. The Child Health standards. Advisory Committee continues Polls Changes in diet, however, to work on key food issues, and can often take some time to in past activities removed trans- How well do you think Democrats and the GOP will work together in the state Legislature? adjust to. So it was no surprise fats from food service and school The margins are so close, they’ll have no choice but to make it work. that some children initially food items. We believe that these 12% complained of being hungrier combined efforts, given more than usual as they adjust to time, will help America’s young proper portion sizes and calorie people embrace the new healthy Gridlock! Washington D.C.-style politics come to Arkansas. amounts. For instance, accord- food choices, learn proper nutri- 12% ing to the National Health and tion and leave the lunchroom Nutrition Examination Survey, satisfied. It depends on the issue. Grocery tax cut’s easy, but Medicaid expansion will get nasty. American school-aged children So kids and parents, don’t currently consume 50 to 240 give up on the new school meal 77% percent more protein than they standards. Remembering to “eat really need. The new school your vegetables — and fruits” meal standards are in line with is not a necessary evil; it’s a help our students live a healthi- nutritional requirements — tasty way to get the nourish- er life with healthier foods. rather than the current over- ment you need to maintain a Arkansas Business welcomes Letters to the Editors. Letters must be signed and writers must consumption that’s helped to healthy weight and be success- Jada Walker include their hometowns and contact information so we can confi rm their identity. Letters are increase childhood obesity. ful in school. And know that the Little Rock subject to editing for clarity, length, spelling and punctuation. Letters may be mailed to Editor Gwen Moritz, Arkansas Business, 122 E. Second St., Little Rock, While it’s true that some kids efforts of many organizations Chair, Child Health Advisory AR 72201; faxed to (501) 375-7933; or e-mailed to [email protected]. may need more food through- across the state are working to Committee 24 November 12, 2012 Arkansas Business Legal Notice PUBLIC NOTICE NOTICE OF PUBLIC SALE, STOP PreTending DISMANTLING OR DESTRUCTION That You Don’t Need The following property has been abandoned 2006 Nissan Frontier, VIN 1N6A- A Good Website. D06U96C423358; and pursuant to A.C.A. 27-50-1209,1210 shall be placed for public sale, dismantling, or destruction at 12:00 GREAT p.m. on December 3, 2012, unless the owner appears at Hawg Country Towing, 422 N. Cato Springs Rd, Fayetteville, AR, proves Get ownership and pays all outstanding fees. Bids for public sale shall be by sealed bid STRATEGIC. only. Those wishing to bid may call 479-587- CREATIVE. 8008 for bidding information. INSPIRED.

THE DEADLINE TO SUBMIT 122 E. S Econd Str EE t L i t t L E r o c k , A r 7 2 2 0 1 LEGAL NOTICES 501.244.0360 | f LE x360.com IS NOON TUESDAY. Submit your notices to [email protected] or ArkansasBusiness.com/legals. For more info contact Bonnie Jacoby at (501) 372-1443 ext. 308 or [email protected].

Arkansas A LOCAL GUIDE Real Estate Marketplace Business TO REAL ESTATE

RESIDENTIAL

COMMERCIAL

Address: 7103 Cock of the Walk Drive, North Little Rock PRICED TO SELL! Available: 8,500 SF +/- Bldg; 11.68 acres +/- FOR SALE: $2,295,000 Description: INVESTMENT OPPORTUNITY. Cock of the Walk Restaurant! A 28 Year Old Business with an 8,500 sq. ft. facility on 11.68 acres ±. Price includes Furniture, Fixtures & Equipment! Restaurant seats 350 +, 4 party rooms, pond, sprinkler system and more than 90 parking spaces. TIME IS OF ThE ESSENCE! BRING OFFERS!

Contact: Reed Gibbons Phone: 501-580-7000 Email: [email protected]

For advertising information contact Bonnie Jacoby (501) 372-1443 [email protected] Arkansas Business November 12, 2012 25

Arkansas Super Mover Business A closer look behind a prominent promotion This Week: A. Heath Abshure, president of the North American Securities Administrators Movers+Shakers Association Background: A. Heath Abshure Submit news items to ArkansasBusiness.com/Movers graduated with a bachelor’s degree in business administration from Chris- tian Brothers University in Memphis Accounting director of development for the University and received his law degree from the Clay Morgan, Kirsten Banks, Lindi of Arkansas in Fayetteville Division of University of Arkansas at Little Rock VanSlyke, Michelle Dobson and Nicole Student Affairs. She served as associate William H. Bowen School of Law in Braddock have joined the tax staff at director of development for the College 1998. JPMS Cox PLLC in Little Rock. of Education & Health Professions for Jeremy T. Watson has been appointed more than four years before the move. Experience: Abshure began practic- to serve a five-year term on the Arkansas ing law at Giroir Gregory Holmes & State Board of Public Accountancy. Hoover in Little Rock. Then for two Watson is a partner at Jones & Co. Ltd. in Financial Services years, he worked for the Securities & Jonesboro. Exchange Commission in Washington, D.C., as a staff attorney while also attending Georgetown University Law Education Center, where he earned a master’s Anastasia Boles and Nicholas Kahn- degree in laws with distinction in se- Fogel have become full-time faculty curities and financial regulation. After members at the University of Arkansas returning to Little Rock, he became a at Little Rock William H. Bowen School partner at Williams & Anderson PLC, of Law. Prior to the move, Boles was a Jim Sandy specializing in corporate securities. In Abshure plans to focus on the association’s faculty fellow at the Thomas Jefferson Liles Cothran 2007, Gov. Mike Beebe appointed Ab- response to the changing regulatory environment. School of Law in San Diego. Kahn-Fogel Jim Liles and Sandy Cothran have shure commissioner of the Arkansas [PHOTO BY JASON BURT] has served as a visiting assistant profes- joined the Searcy office of Crews & Securities Department. sor at Bowen since 2008. Associates. Liles has 32 years of experi- sonable regulation for perceived economic Jane Ann Williams was named assis- ence in the investment banking industry, New Position: In his new role as growth. However, reasonable regulation tant provost and direc- and Cothran has 15 years of experience. president of the North American Securi- is essential to facilitate the investor trust tor of international Working together, the two have served ties Administrators Association, Abshure necessary for economic growth,” Abshure engagement at the Searcy and the surrounding area for said, he plans to focus on the organiza- said. “But all too often, lawmakers believe University of Central more than 12 years. tion’s response to the changing regulatory that unregulated markets promote growth. Arkansas in Conway. Elizabeth Bradley has been promoted environment. “We must show that our We must persuade lawmakers that this be- Before joining UCA, to senior vice president and director of role strikes the most reasonable balance lief is misguided and prove that we are the Williams was executive internal audit at Southern Bancorp Inc. of between investor protection and capital best option to promote capital formation director of internation- Little Rock. formation. If the JOBS Act is any indication, while at the same time maximizing safe Jane Ann al education at Miami Kevin Wish has joined Arvest Bank of lawmakers appear willing to sacrifice rea- and secure investing for consumers.” n Williams Dade College. Conway as a commercial banker. Before the move, Wish was a community banking relationship manager at Regions Media Bank. John Atkinson has joined the staff of Arkansas Business Publishing Group as Health Care publication art director. Dr. Jonathan Stringer has joined the Atkinson, who has par- medical staff at Mercy ticipated in the design Keldon Wesley Hospital in Hot Springs Todd Teresa and production of mag- Henley Kluck from the University for Fisher Hampel azine, print and collater- Keldon Henley and Wesley Kluck Arkansas for Medical al projects in a number have switched roles at Ouachita Baptist Sciences in Little Rock, John of industries, previously University in Arkadelphia. After having where he served as an Atkinson was creative director at served as vice president of student ser- internal medicine resi- Atkinson Creative Services of Tampa, Fla. vices since 2003, Henley has been named dent and completed a He has won local, regional and national vice president for institutional research. Jonathan fellowship in endocri- creative awards in categories including And Kluck, who served in the role since Stringer nology. television; complete campaign, business 2005, has become vice president of stu- Dr. Matthew Hardee has joined the and consumer advertising in both maga- dent services. Scott Haynes has been Radiation Oncology Jyll Machel zines and newspapers; direct mail; and named director of resi- Center at the University Latham Carvill poster, annual report and logo design. dence life, a role that of Arkansas for Medical have been hired at was previously filled by Sciences in Little Rock. Regions Insurance Group Henley. Hardee completed his of Little Rock as cus- Real Estate Kerry Darting has residency in radiation tomer service represen- Sherry Ryals has joined the Elder Co. been hired as director oncology at New York tatives in the commer- of Springdale as chief operating officer. of basketball opera- University School of cial lines department. Ryals previously had been with Kings tions at the University Matthew Medicine. Morrisa Pruett and River Title in Fayetteville for six years. Scott of Arkansas at Little Hardee Denise Waller have also Tonia Coyne has joined Crye-Leike Haynes Rock. Darting spent the joined the department, at the Kanis Road office in Little Rock. last five seasons in the same position at Insurance Tiya as a claims representa- Before recently getting her real estate Illinois State University in Normal. Todd Fisher, Teresa Hampel, Jyll Williams tive and account man- license, Coyne was working as an office Erin Hogue has been promoted to Latham, Machel Carvill and Tiya Williams ager respectively. administrator for the company. n 26 November 12, 2012 Arkansas Business This Week: Jeff Yates Arkansas Partner with Irwin Partners of Little Rock Business in central Arkansas. That translates into 2 million SF of available offi ce space and more than 6 million SF Bio: Jeff Yates Exec Q&A of available industrial space. Both Background: Yates grew up in Prairie product types have improved, but Grove (Washington County) and gradu- To submit questions or interview suggestions, email [email protected] opportunities for tenants are still ated with a bachelor’s degree in fi nance plentiful. and real estate after attending the Jeff Yates is a certifi ed leasing specialist with Irwin Partners, a commer- University of Arkansas at Fayetteville and cial real estate investment, brokerage and development fi rm. How has commercial real estate at Little Rock. investing changed during the Career: Yates’ practice focuses on retail Is it still a renter’s market? market for lease rates. past four years? Capital has be- and offi ce, especially in leasing and in commercial real estate investment counseling. He What are prospective tenants come more risk averse. Lending insti- is the Oklahoma/Arkansas state director for Yes, in the Little Rock tutions have shown some discipline asking for? Which sector has fared best the International Council of Shop- Metro, it is a renter’s market in all since the fi nancial crisis of by requiring increased underwriting ping Centers, member of the product types — but more in some 2008, offi ce, retail or indus- requirements, more conservative loan board of the Little Rock types and some markets than in trial? In other words, what terms and conditions, and greater Realtors Association others. Existing tenants have been sectors of the commercial real borrower requirements. Some com- and treasurer of the negotiating for reduced rent and estate market are hot? Which mercial real estate owned by lenders Building Owners & to reduce the leased area. The ones are not? In the central Arkan- has sold at signifi cant discounts and Managers Asso- buzzword of “rightsizing” has gotten sas markets, offi ce, retail and indus- created downward pressure on inves- ciation of Greater a lot of use. Prospective tenants are trial properties have all rebounded tors’ expectations of pricing. REITS, Little Rock. seeking reduced rates, limited lease substantially. Retail is leading the institutional and other large investors term with options and improve- three occupancy-wise, with a current seem to have been best positioned to ments/renovations by landlords. vacancy level in this market of less restructure debt and take advan- When those renovations are not than 8 percent. Supply of existing tage of market softness to expand where is it headed? The current real estate. So much institutional provided, prospective tenants are product is limited, making it diffi cult inventories. Smaller investors and cycle of commercial real estate is risk and corporate capital is waiting for seeking even larger rental discounts. for some retailers to expand into especially developers have experi- averse, demanding of stable returns stability that when the consensus Landlords are seeing lower rents the market. Retail market rents are enced pressure from the market and and seeking stability and consistency is reached that the market is ready, and rising operating costs. Proper- increasing and may be approach- debt structures. in markets, tax policy, lending policies there may be more broad upward ties recently acquired from lenders ing the tipping point to attract new and overall government policies. price pressure across asset types and at deep discounts to construction development. Offi ce and industrial What is the current “normal” There is substantial capital avail- classes due to demand for product costs are contributing to a soft vacancy are both around 12 percent in commercial real estate and able for investment in commercial exceeding available supply. n the Good Life Begins Here Do you know someone retiring or relocating? Living in Arkansas

13 • 201 3 ED ITIO N THE ULTIMATE GUIDE TO can help them get the CULTURE, ball rolling. Inside this RECREATION ultimate resource guide, & HEALTH TM g CARE S g inS KANSAi livIN ARKANSA they need to know about oArkansas.com RelocateT WIN retiring in Arkansas— A TRIP TO from its world-class MUST-TAKE ARKANSAS! housing options and ADVENTURES PG. 50 PG. 32 health care to its beautiful 10 state parks and fabulous UNIQUE golf courses. CUISINE Food that makes Arkansas’s culinary scene one-of-a-kind PG. 71 CRYSTAL BRIDGES KEITH ONE OF THE WORLD’S TOP TRAVEL CKSON JWHYA THE FORMER PRO FOOTBALL PLAYER DESTINATIONS PG. 38 CALLS THE NATURAL STATE HOMEPG. 22

PLUS!

this is the Good Life Order your copy by calling (800) NATURAL, or by visiting Arkansas.com/relocate. suBscriBe to the Best in Business news

1 yeAr suBscription for only $64.95

Visit ArkAnsAsBusiness.com/suBscriBe