A troubled Little Rock apartment complex went up for sale Thursday. Big Country Chateau has been fraught with controversy over its housing code violations for several years.
Only one group stepped up to bid on the troubled apartment complex; a New Jersey-based LLC known as Big Country Note. At a public courthouse auction, they bought the full 151-unit apartment complex for just over $3.3 million.
In May 2023, the building was foreclosed on by the finance company Freddie Mac. Then last February, Big Country Note bought the real estate note on the apartment complex. The LLC has only been around since January and seems to exist to manage Big Country Chateau. The building was previously owned by a New Jersey-based landlord, APEX Big Country AR LLC, before the building was foreclosed on.
A history of code violations
The housing structure, near the corner of Asher and University in Little Rock, has been riddled with controversy. Allegations date back years saying owners are not following building codes and forcing tenants to live in inhumane conditions.
In reporting from the Arkansas Advocate, residents describe exposed electrical wiring and molding walls as some of their many complaints in the building. Residentsalso say they have faced constant threat of having their utilities shut off.
In 2022, then-attorney general Leslie Rutledge sued the building's owners, alleging they were not using the money collected from tenants to pay utility bills, and that they were creating an unsafe living environment for tenants. Rutledge called their behavior “detestable.”
In March of last year, the complex was orderedto pay a fine that added up to $31,950, the maximum financial penalty they could have faced.
The judge, Mark Leverett, says he rarely imposes the maximum fines, but felt this case was an exception.
“The witness testimony and documentary evidence presented by the City during sentencing were substantive and showed widespread life safety violations and substandard living conditions,” the ruling reads.
That number was calculated by charging $1,000 for each of the complex's 30 counts of safety violations. Court costs were then added.
Dustin A. Duke from the law firm AR Law Partners represented Big Country Note during the Thursday sale. He said the company is ready to fix the problems in the apartment complex.
“My client is anxious to work with the city code enforcement to make sure all those issues are addressed,” he said. “They have managers and maintenance folks and contractors that are just waiting to go.”
He said repairs will begin “as soon as possible.” According to Duke, only 14 people still live in the housing complex.
