Developers CRG and IDEA Partnerships, together with design-builder Clayco, donated the Enterprise Center Building in the Arkansas Research and Technology Park to the U of A Technology Development Foundation, which manages the tech park and its corporate affiliates.
The Enterprise Center donation is valued at more than $20 million, according to a recent appraisal of the property. The building was developed by CRG and IDEA Partnerships and opened in 2009; it was master-leased to the U of A through a unique public-private partnership that allowed for expansion to support start-up companies that outgrow Arkansas Research and Tech Park’s accelerator facilities.
Built by Clayco to facilitate top-tier academic research, the two-story building is LEED Silver certified and contains high-end laboratory, office and manufacturing facilities. It serves as a commercialization hub for new technologies, many of which were developed at the U of A, including new methods of insulin delivery and health monitoring systems and the development of advanced materials such as silicon carbide for energy efficient high-power switches.
“Community stewardship is one of the cultural pillars of our company,” said Bob Clark, executive chairman and founder of Clayco.
This transaction, finalized in 2021, is beneficial to ARTP Developers One by enabling the entity to pay off all existing loans and receive the tax benefits from the charitable donation of the building and the donation of its developers’ fee. As a result of the transaction, UATDF solidifies ownership of assets within ARTP and unifies property management of leasable space, allowing UATDF more flexibility for current and future tenants and companies. Additionally, the arrangement will accelerate UATDF’s access to cash flows while consolidating and lowering debt service obligations, strengthening the foundation’s financial position.
“The university and the foundation are delighted to have been able to work with Clayco and IDEA Partnerships to structure this donation in such a way that all parties are able to benefit,” said David E. Snow, U of A Technology Development Foundation president and interim vice chancellor for economic development at the U of A. “We are very grateful for the donation of the Enterprise Center Building. It will provide ongoing benefits to our expanding innovation ecosystem here at the Arkansas Research and Technology Park. In addition to thanking Clayco, I would like to thank Jim Smith (of Smith Hurst, PLC) for his effort and support on this transaction and the rest of the University of Arkansas Technology Development Foundation Board of Directors, our chancellor and the General Counsel’s Office of the University of Arkansas, and congratulate my now retired predecessor Phil Stafford, who laid the foundation for our success today many years ago.”
About Clayco: Clayco is a full-service, turnkey real estate development, master planning, architecture, engineering, and construction firm that safely delivers clients across North America the highest quality solutions on time, on budget, and above and beyond expectations. With $3.8 billion in revenue for 2020, Clayco specializes in the “art and science of building,” providing fast track, efficient solutions for industrial, commercial, institutional and residential related building projects. For more information visit www.claycorp.com.
About UATDF: The Arkansas Research and Technology Park (ARTP) was formed in 2003 and began operations in 2004. Over the past several years, the ARTP has shaped a dynamic environment for innovation where university research is being translated into innovative products supporting high-skill, high-wage jobs. Today, the ARTP is recognized as a regional hub for innovation where business enterprises benefit from collaborative opportunities that provide access to intellectual capital, leading-edge research resources and a technologically skilled workforce.
At present, the facility inventory at the ARTP totals 285,000 square feet and includes the Engineering Research Center, the High-Density Electronics Center, the National Center for Reliable Electric Power Transmission, the GENESIS Technology Incubator, Innovation Center, and the Enterprise Center. At full build-out, the ARTP is designed to create nearly 750,000 square feet of research and development capacity, housed in several buildings providing over 2,000 high skill, high-wage jobs.