LITTLE ROCK, Ark. (AP) - A Little Rock retirement center acquired by a state teacher fund more than a decade ago has been sold to a real estate company for $16.8 million, according to officials.
Executive Director George Hopkins of the Arkansas Teacher Retirement System said Monday that the Woodland Heights retirement center was sold to the Woodland Heights Al Real Estate LLC, the Arkansas Democrat-Gazette (https://bit.ly/1IJFsTi ) reported.
The sale of the 146-unit property south of Interstate 630 closed for the appraised price from an April 2014 appraisal, Hopkins said. The property includes 123 two-bedroom units, 21 one-bedroom units and two studio apartments.
He estimated the system invested more than $22 million in the facility and said that “numbers since 2007 show positive cash flows of about $1.4 million.”
“Ultimately, the major difficulty in the Woodland Heights facility was my unwillingness to provide a medical care component such as assisted living … due to the financial risk to the ATRS trust fund,” Hopkins said.
“RPM (Management Company Inc.) provided excellent management of Woodland Heights and helped turn it around as an independent-only living facility,” he said. “Lack of a medical care component prevented the facility from reaching a core asset potential.”
The retirement system is the state government’s largest retirement system, with more than $14 billion in investments and more than 100,000 working and retired members. It gained control of the center in 2001 after a company defaulted on a loan from the retirement system.
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Information from: Arkansas Democrat-Gazette, https://www.arkansasonline.com
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