Wheatley family sells two historic downtown properties

The Sentinel-Record/Mara Kuhn BUILDINGS SOLD: The Wheatley family announced Wednesday that it had sold the Dugan-Stuart Building, 344 Central Ave., pictured here, and the Thompson Building, 422 Central Ave., to TKZ LLC.
The Sentinel-Record/Mara Kuhn BUILDINGS SOLD: The Wheatley family announced Wednesday that it had sold the Dugan-Stuart Building, 344 Central Ave., pictured here, and the Thompson Building, 422 Central Ave., to TKZ LLC.

The Wheatley family said Wednesday that it has sold two iconic downtown buildings, the Thompson Building and the Dugan-Stuart Building, to TKZ LLC, a group headed by a local financial adviser and two Hot Springs architects.

TKZ said it plans to develop the Thompson Building, 422 Central Ave., into a 62-room boutique hotel, and develop the Dugan-Stuart Building, 344 Central Ave., for residential use, with retail on the ground floor.

A joint news release said the change in ownership followed a lengthy negotiation and due diligence process that began in October 2013.

TKZ LLC is led by Robert Zunick, a local financial adviser, and local architects Bob Kempkes and Anthony Taylor. Kempkes and Taylor are two of the partners in the company that operates the Quapaw Baths & Spa on Bathhouse Row, which is located across Central Avenue from the buildings.

"I have great confidence in the historic passion Robert Zunick has for downtown Hot Springs, especially these two buildings. I am confident that the expertise both Kempkes and Taylor have in restoration will ensure this to be a wise decision for our community and be a launching point for future redevelopment," Kenneth Wheatley, representing the Wheatley family, said in the release.

The release said the Thompson Building is to be developed into a 62-room boutique hotel.

"Current plans include a food and beverage operation, business center, fitness center and a roof-top terrace. Some retail will be retained on the ground floor. The terraced gardens behind the property will be reconstructed and linked into the hiking trails on West Mountain," it said.

The Dugan-Stuart Building will be developed for residential use, with retail housed on the ground floor.

"Some of the units may be reserved for short-term vacation rentals. The central portion of the building between its two wings will become a glassed atrium containing fire exit stairs and communal areas. A fitness center is planned in the basement, which once housed a bowling alley," the release said.

"I'm glad to be involved in this new chapter in the colorful history of downtown Hot Springs," Zunick said in the release.

"Even though these two buildings' upper floors have been vacant for many years, they are in great shape and ready to renovate. Bob and Anthony have already played a big part in the restoration of many historic buildings here and will continue to have a positive impact downtown. I look forward to the day we can walk down Central Avenue, look up at the restored facades, and see both tourists and permanent residents peering out the windows," he said.

Construction is anticipated to begin sometime in the fall, with completion in the fall of 2015.

The Historic Preservation Alliance of Arkansas announced in May that two Hot Springs buildings, including the Thompson Building, and nearly the entire downtown Hot Springs area had been included on the 2014 list of Arkansas' Endangered Places.

The Historic Preservation Alliance noted that the Thompson Building "is one of the most recognizable landmarks in the Central Avenue Historic District. The building, which features an ornate glazed terra cotta facade, was designed in the neoclassical style by architect George R. Mann, the principal architect of the Arkansas Capitol. Like many other structures in the district, the first floor is occupied but the upper stories are vacant."

Local on 06/05/2014

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