Ranch At Pinnacle Point

Ranch at Pinnacle Point

Rogers, AR

In 2015, Advalurem completed the acquisition of Ranch at Pinnacle Point, a 396-unit garden-style apartment community located in Rogers, AR. The Property features Hill Country architecture and luxury amenity package.

The property is located in Northwest Arkansas, one of the fastest growing economies in the nation. The metropolitan area is driven, in large part, by the major Fortune 500 companies headquartered there, including Walmart, J.B. Hunt and Tyson Foods. The economy is also rooted in education and healthcare with the University of Arkansas and several prominent health care systems providing a foundation for growth.

The business plan calls for increasing cash flow over the holding period by introducing a significant common area and unit upgrade program, streamlining operations, as well as drafting off strong demand fundamentals. Advalurem structured its investment as sponsor equity and received key partnership rights for early liquidation and enhanced profit sharing. Advalurem expects to hold the investment for seven years with an overall return in the mid-teens.

Asset Quality
Loan To Value

Investment Highlight 1

Strategic Market

Northwest Arkansas is one of the fastest growing economies in the nation and exhibits strong demographic trends. The job engines of three Fortune 500 companies (Wal-Mart Stores, Tyson Foods, J.B.Hunt), institution (University of Arkansas), and healthcare (Mercy, Washington Regional and Northwest) allow the metro area to boast strong job growth and a low unemployment rate.

Investment Highlight 2

Institutional Quality Asset with Vale Enhancing Opportunity

The 392-unit property sits on 25 acres and features a well-appointed amenity package including grand clubhouse, billiards room, theater room, resort-style pool, modern fitness center and electronic entrance gates.

Investment Highlight 3

Supply demand imbalance

Despite strong job growth, the market lacked professionally managed, institutional quality apartments, providing a verifiable path towards achieving rent growth.