Category: New Business

Opportunity Zones: The Basics

Posted on 09/09/21

What are opportunity zones?

Opportunity zones were created by congress as part of the Tax Cuts and Jobs Act of 2017 to spur economic growth in economically distressed communities. In April of 2018, Gov. Asa Hutchinson proposed 85 tracts around the state be designated as official Opportunity Zones in Arkansas. By December of that year, the US Department of the Treasury confirmed this proposal and all 85 tracts were designated as Qualified Opportunity Zones (QOZs). There are more than 8,700 designated zones nationwide that provide tax incentives for private investment in low-income communities. Opportunity Zone properties around the state vary greatly. They include urban/downtown, industrial, suburban, and rural areas—but each QOZ shares the same need of a spur in economic growth and job creation. Click here to view an interactive map of opportunity zones in Arkansas.

How do they work?

Investors who wish to take advantage of this program have 180 days to reinvest any prior eligible capital gains into a Qualified Opportunity Fund (QOF) and by doing so, they receive several tax incentives on those gains. The QOF is created to invest in an opportunity zone property with at least 90 percent of its assets dedicated to the QOZ. By reinvesting all or a portion of their gains into a QOF, the investor’s capital gains tax may be deferred until the sale of the QOZ investment or until December 31, 2026, whichever comes first. If the QOZ is held for five years, the investor will benefit from a 10% exclusion of the deferred gain; holding it for seven years will increase the exclusion to 15%. Investors who hold the QOZ for at least 10 years will eliminate paying a capital gains tax on appreciation of the QOZ property.

Who benefits?

Investors benefit from the preferential tax treatment while communities benefit from property improvements, job creation, and new businesses. Small businesses operating in the opportunity zone may also benefit with an equity investment from a QOF. There are requirements that must be met to qualify as an Opportunity Zone Business (QOZB), which are outlined in detail in the New Proposed Regulations.

The Opportunity Zones program is a unique and effective economic development tool and an important part of making our communities and neighborhoods stronger, safer, and more economically healthy. As Opportunity Zones grow and prosper, the communities around them reap the benefits, which in turn, benefits everyone.

Learn more:

IRS: Opportunity Zones

Arkansas Economic Opportunity Zones

The information provided here in is not to be construed or relied upon as legal or tax advice.

Franks Dermatology adds SKN at Franks Dermatology

Posted on 07/29/21

Rachel Sims, RN and Hayden Franks, MD partner to add SKN at Franks Dermatology

Franks Dermatology opened in Suite 320 of the Simmons Plaza Building at 4220 N. Rodney Parham Rd. in 2017. Dr. Hayden Franks and his wife, Lynne renovated the 2,064 s.f. suite and created a beautiful space for his patients from the moment they enter the reception area and into each examination room. They thought of every detail with the patients’ care and comfort foremost in their design. After practicing for more than 20 years, Franks has built a reputation for providing exceptional care. His staff shares the same commitment to the patients. Franks specializes in medical dermatology, surgical dermatology, and skin cancer.

In March, Franks partnered with Rachel Sims Miller to open SKN at Franks Dermatology located in Suite 102 of Simmons Plaza. This 1,977 s.f. space was also renovated to create a welcoming and relaxing space for clients. SKN offers high-end skin care and a wide range of aesthetic products. Miller is a registered nurse and an aesthetic nurse injector with more than seven years of experience. Her training and continuing education keep her informed of the latest, safest, and most effective products and procedures available. She has also developed her own skin care line, Miller Marsh Cosmetics. Like Franks, Miller is passionate about her work and dedicated to providing superior care to each client.

Senior property manager, Cheryl White, says Franks and Miller have been a pleasure to have as tenants. “I wish them great success with their newest endeavor. SKN is a wonderful addition the to the building and community,” said White.

Kelley Commercial Partners leases and manages properties to suit a variety of medical practices. If you would like more information about what we have available, please call 501.375.3200.

Dog Days? Pretty Paws!

Posted on 07/21/21

Is your pooch looking a little unkempt during these “Dog Days” of summer? Well, our newest tenant at Breckenridge Village Shopping Center, Pretty Paws Pet Grooming, can get your fur baby looking and feeling great again. Tabbitha Taber and Dominick Maida opened this boutique pet grooming salon on May 20^th of this year.

Tabbitha and Dominick make a great team. She handles all the pups in the front of the shop, while he handles all the biz in the back. Of course, Dominick will often step out of the office to play with a pup or two. Can you blame him?

Tabbitha has been grooming dogs for about seven years, and in spite of the daily occupational hazard of a dog bite, she absolutely loves what she does. She says, “I love all animals!” At home she has four dogs, four cats, and a rabbit.

Tabbitha started her pet grooming journey as a bather at a shop in Bryant and as she observed the groomers, she knew right away that she had found her passion. Anxious to learn, she spent the next year training in Bryant with a groomer who specialized in show poodles. Since then, she has worked at a number of veterinary clinics and grooming salons before the opportunity to open her own place presented itself. One evening the couple was visiting Angie Creal, owner of Axis Salon in Suite A7 of Breckenridge Village when they noticed the “For Lease” sign in the window of the space downstairs. “It just happened to be the perfect size and had some other features which were exactly what I was looking for to open Pretty Paws,” says Tabbitha.

Working with leasing agent, Brooke Miller and property manager, Missy Cherry, Tabbitha and Dominick signed a lease and got to work. The result is a fun, colorful space designed to keep the animals happy and safe. “It’s all about the animals,” she says. Of course, she loves to please her two-legged clients too, but Tabbitha readily admits, “If I didn’t have to have money to live, I would do this [job] for free!”

Pretty Paws is located in Breckenridge Village Shopping Center at 10301 N. Rodney Parham, Suite A3. They are open Monday through Friday from 8 a.m. to 6 p.m. and are currently offering a 20 percent discount to customers who send a referral. Military and senior citizens (65+) always receive a 10 percent discount.

Arkansas Osteopractic Thrives in Breckenridge Village

Posted on 03/01/21

In October of 2019, physical therapist Ben Milholen opened Arkansas Osteopractic in Breckenridge Village at the corner of N. Rodney Parham and Interstate 430. After four short months, and working through the challenging ups and downs of starting a new business, Milholen had surpassed his plan for growth — and then the pandemic hit. His practice was essentially shut down for two months and he found himself starting over six months after opening. “However, once things got going again, they really took off,” said Milholen. Arkansas Osteopractic now manages a full schedule of patients every day and Milhollen, pending approval, is looking to add therapists representing multiple therapy disciplines to the practice.

Milholen, a graduate of the University of Central Arkansas’s DPT program, has been a practicing physical therapist since 2011. Prior to opening his practice, he was at CHI St. Vincent.

In January, the American Academy of Manipulative Therapy named Arkansas Osteopractic the 2020 Clinic of the Year. Milholen expressed gratitude to his patients for their support and the confidence they have in him.

The clinic offers a wide range of services from electrical stimulation to therapeutic and functional exercises. “ … the clinic is evolving into more than what I had imagined … ,” said Milholen.

Kelley Commercial Partners congratulates Ben Milholen for his tenacity and success during a challenging time. Arkansas Osteopractic is located at 10301 N. Rodney Parham, Suite B-3 in Little Rock and is open from 9 a.m. to 5 p.m., Monday through Friday. A full list of services and pricing are available on the website. Call (501) 615-8046 to schedule an appointment.

Hank Kelley on 2020 and beyond

Posted on 12/23/20

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.