Bentonwood Single-Family Community

The proposed development at 3950 S Vaughn Road, Bentonville, Arkansas, encompasses a 97.91-acre vacant land tract and will be developed as a 650-unit single-family residential community in two sequential phases. Phase 1 will deliver 58 homes within 12 months (2,750 square feet per home), and Phase 2 will deliver the remaining 592 homes over 48 months. All homes will be built as traditional single-family American residences with a complete neighborhood amenity package including landscaped common areas, parks, walking and biking trails, playgrounds, and internal roadway and drainage networks.    

Financial Breakdown:

The project is structured with mixed capital, combining contributed land and cash as the equity base, alongside a $268M worth of senior debt facility. The debt will be taken in very smaller withdrawals. The land contribution is valued at $15M, forming a substantial portion of the equity stack. A total of 15M equity shares will be issued at $1 per share. Debt financing is secured through a 30‑year amortizing mortgage at 6.00%. Despite the leverage and long‑term debt service, the project’s return profile remains highly compelling, delivering an unlevered IRR of 14.72% and a levered IRR of 20.75%, making the opportunity difficult to overlook from a performance standpoint.