Category: Commercial News

Kelley Commercial Partners Northwest Adds New Shareholder Partners

Kelley Commercial Partners Northwest office is pleased to announce the appointment of two new shareholder partners, Jay Pearcy and Matt Strom. They will be joining existing partners Jordan Jeter and Philip Schmidt, and CEO Hank Kelley Jr.

“I am thrilled with the continued growth in our Northwest Office and delighted that Jay and Matt could join our other partners, Jordan Jeter and Philip Schmidt in Northwest Arkansas.  I appreciate the hard work of these partners and associates during 2020. Their leadership in this office made the difference in 2020 and we look forward to a bright future working together to serve the needs of our clients throughout the state and region,” said Kelley.

Jay Pearcy

Jay Pearcy, NWA Principal Broker, Partner

Jay Pearcy began his real estate career in 2005 as a sales associate at Pinnacle Realty Group, a subsidiary of Hunt Ventures. He joined Kelley Commercial Partners in 2016 as property manager. In 2020 he became the principal broker. Pearcy is the lead property manager and oversees the management of 1,500,000 square feet and 35 commercial properties.

A native of Texarkana, Texas, Jay has lived in Northwest Arkansas for more than 20 years. He serves as a board member for the Washington County Planning Commission and is an active member of Cross Church Fayetteville.

“It is great to work for a company that has supported me along the way and helped me reach my professional goals,” said Pearcy.

Matthew Strom

Matthew Strom, CCIM, NWA Agent, Partner

Matt Strom graduated from the University of Arkansas with a degree in Finance and an emphasis in Real Estate. After graduating, Strom moved to Denver, Colo. where he earned his Series 7 and Series 63 license to sell non-traded REIT investments. After returning to northwest Arkansas, he continued his commercial real estate career as an agent at Kelley Commercial Partners in 2016. He received his CCIM designation in 2018. Strom’s extensive sales experience with real estate investments has made him a great asset to our team.

“It has always been a goal of mine to become a member of the leadership team here at Kelley Commercial Partners NW. I’m very grateful for the opportunity and look forward to our company’s future,” said Strom.

Kelley Commercial Partners Adds New Shareholder Partners

Kelley Commercial Partners is pleased to announce the appointment of two new shareholder partners, Jessi Miller and Gary Smith. They will be joining existing partners Hank Kelley, Daryl Peeples, Maggie Hogan, Nick Kelley, Cynthia Lu, Brooke Miller, Kevin Pledger, Eric Varner, and Cheryl White.

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Jessi Miller

Jessi Miller, Director of Human Resources and Accounting Manager

Jessica Miller joined Kelley Commercial Partners in 2007 and worked her way through accounting, brokerage, and property management departments before settling into accounting in 2013. In 2018, she was promoted to accounting manager and director of human resources. Miller works in conjunction with the executive committee to set policy for employees and manage day-to-day human resources issues.

A native of South Dakota, Jessica and her family chose Arkansas as their home state after her husband’s retirement from the U.S. Air Force. Miller earned a bachelor’s degree in human resource management from Park University in 2012 — an accomplishment she is especially proud of as she was able to complete the degree in four years while working full time at Kelley Commercial Partners and raising two children.

“I am grateful to work for a company that has supported and encouraged me in my professional and personal goals. I look forward to the opportunity to contribute to the company and the team.”

Gary Smith

Gary Smith, Director of Business Development

Gary Smith began his commercial real estate career as an agent Kelley Commercial Partners in 1998 and was promoted to director of business development in 2005. He is a committed professional skilled at identifying and meeting his clients’ commercial real estate goals. Smith attributes his success to establishing trust and negotiating transactions with the best interest of all parties in mind. He works closely with the Little Rock Port Authority and was part of the team that helped bring Amazon’s new distribution center to the port.

Smith received a bachelor’s degree in sociology from East New Mexico University where he was a member of the golf team. Smith is still an avid golfer and has contributed his passion and talent for the game into serving his community. For several years, he has served as chair and member of the golf committee for the Centers for Youth and Family Foundation Annual Golf Tournament. He and his wife, Jennifer, are also active members of their church, where they lead the greeting team.

“It is an honor to be named a partner and I am proud to be a member of the team of professionals at Kelley Commercial Partners.”

Hank Kelley on 2020 and beyond

Hank Kelley, CEO, Executive Broker, Partner

Like so many businesses and individuals, the COVID-19 pandemic has presented Kelley Commercial Partners with unprecedented challenges, but it has also given us a unique opportunity to more clearly focus on the continued improvement of our knowledge of the commercial real estate sector and the values by which we run our business. Our commitment to the safety of our employees, clients, and customers has been and will continue to be paramount. Ensuring the readiness of our team to work remotely is part of that commitment. We’ve garnered much insight by working more closely with banks and the Small Business Administration as many of our clients navigated the tricky waters of PPP loans and other unplanned COVID-related expenses. Maintaining financial stability for our clients and our own company continues to be a top priority and our team grows more confident each day that we have the knowledge and values to keep moving us all moving forward. Many of the companies we interact with — both locally and across the country — have faced challenges that require a higher level of patience and empathy as we all wrestle with the uncertainty a pandemic has delivered.

The good news is that these lessons are making us a stronger company, one more prepared than ever to face whatever the next decade may bring. Many of our team members quickly adapted to working remotely and some will likely continue working from home after the pandemic is gone. Our cloud-based brokerage management, accounting, and payment systems have been very effective tools to ensure that we are operating as efficiently as possible, whether we are behind our desk at home, in the office, or on a property site.

However effective these applications have proved to be, the true defining characteristic of our company’s success has been our team’s ability to earn and maintain the trust of our clients. If this year has taught us anything, it’s that most clients care far less about exactly what we know and instead place much more importance on how we show that we truly care about them both personally and professionally. Our agents go through rigorous training and development to ensure they have the skills and knowledge that our clients expect and deserve, but as we all know, even the wisest counsel can only be heard after trust is established and skills are proven. This focus on always coming to the table with a positive attitude and willingness to do the hard work of building trust has been in place since day one and will remain a principal aspect of our company culture far into the future.

We work throughout the state in many property categories — unimproved land, build-to-suit, retail, office, industrial, hotels, multifamily. Prior to March, we were spending more time on retail and office requirements. Today we are working with a variety of industrial and distribution needs as well as acquisitions by users and investors. We believe industrial properties will be active over the next several years to answer the needs of online distribution and manufacturing.

We see some retail space making a transition to more service and medical uses. Owners of retail properties that are able and willing to make that conversion will benefit by diversifying their tenant mix. COVID and the growth in online shopping have caused owners of retail properties to convert empty spaces to uses not directly affected beyond online shopping. COVID accelerated the transition, and that will continue.

Office space users are also weighing their future needs. Some are looking for more traditional office plans providing an emphasis on safety; others are planning to make remote work permanent. However, we are confident the value of working together, in person will bring the office market back to a normal condition during the next two years.

The pandemic did force us to pivot some aspects our business plan, but our focus on unwavering client support has not changed. Our standards are still as high as ever and we measure our performance against those standards. We are grateful for the opportunities we have had during this past year and know that 2020 will be thought of as a year that taught us some valuable life lessons. Now the challenge is remembering these lessons as we move through this stage of the pandemic into a future filled with hope.

In the December 21 issue of Arkansas Business, Hank Kelley and six other business leaders in the community were asked to share their expectations for the future.

Kelley Commercial Partners rebrands and looks forward

Kelley Commercial Partners

We recently sat down the Daily Record to talk about Kelley Commercial Partners’ recent rebranding efforts and how excited we are about the future of the firm. CEO and executive broker of KCP, Hank Kelley, emphasized that while our name has changed, the company will continue to operate much in the same way it has for the better part of three decades. Most of the firm’s current partners have been in place for several years, and in order to underscore the value of their knowledge, experience, and hard work, Kelley wanted to include the word “partners” in our new name.

And before the ink could dry on our new business cards, an unexpected global pandemic hit and we knew our clients and tenants needed our support more than ever. Property managers and brokers worked closely with tenants to help them understand the process and red tape involved in obtaining state and federal assistance, while our facilities team helped to ensure the health and safety of the occupants in more than 7.4 million square feet of property managed by our firm. Kelley Commercial Partners has also been involved in negotiations that will bring Costco and Amazon to Little Rock.

All in all, it’s been a challenging year for everyone, but Kelley Commercial Partners still sees a bright future for Arkansas and we will continue to serve our community for decades to come.

 

1031 Exchanges help defer certain tax liabilities

Brokerage, property management, development management, consulting

For all of your commercial real estate questions, ask a professional at Kelley Commercial Partners

A 1031 exchange, also known as a tax-deferred exchange, gets its name from the Internal Revenue Code 1031. Essentially, this rule in the tax code allows investors to defer certain tax liabilities they would otherwise incur after making a profit from a real estate investment. This can be an incredibly effective tool for investors who find themselves in a situation in which they would like to sell a real estate holding, but do not want to incur the tax burdens such a transaction would create.

In order to take advantage of the 1031 exchange rule, you must replace the property you are selling (the relinquished property) by purchasing another property (the replacement property) with one of equal or greater value and similar in kind and use. For example, if you are relinquishing a rental property for $100,000, you must replace it with another rental property with one valued at $100,000 or more. (You may also have the option to buy several rental properties, so long as the sum total of their value is $100,000 or more). So, unfortunately, you cannot relinquish a rental property and replace it with a vacation home because those two properties would not be alike in kind and use.

In addition to these restrictions, there is a set time frame in which all of these transactions must occur. Once the relinquished property has closed, investors have 45 days to identify the replacement property and 180 days to close that transaction.

Finding buyers for the properties you wish to relinquish, while at the same time attempting to identify equitable exchange properties can be challenging, especially considering the time restrictions. Proper attention must be paid to the details of how 1031 exchanges work and how using them might affect your long-term plans. This is why it is so important to find an experienced CRE professional you can trust to help you with the due diligence commercial real estate transactions require.

If you have any questions regarding a tax-deferred exchange or any other commercial real estate issue, Kelley Commercial Partners brokers and associates are here to provide the answers and support you need to make successful decisions.