A vacant retail building at 2111 W. Walnut St. in Rogers, Arkansas, that was once occupied by a Kmart has been reactivated thanks to an innovative new electric indoor go-kart venue that opened at the site. The lease was selected as the 2024 CoStar Impact Award for lease of the year, as judged by local real estate professionals who are well-versed with the market.
California-based K1 Speed, which bills itself as the world's largest indoor karting operator, leased just under 50,000 square feet of this freestanding retail building located near Highway 49. K1 Speed offers both adult karting with karts capable of 45 mph and young adult karting options.
The Rogers K1 Speed is a franchised location owned by Northwest Arkansas resident and business owner Don Vanhooser, who recognized the demand for more entertainment venues for Northwest Arkansas’ growing population.
The block of space at the back of 2111 W. Walnut St. had been underutilized in recent years and there were plans at one point for an industrial co-working tenant to occupy some of the space but the firm selected another location. Shortly after that, the building was put on the market for sale and was purchased by an investor in 2022.
The space proved to be an excellent fit for K1 Speed with no structural modifications needed. The need to find a suitable location and open quickly was important to preserve the retailer's first-to-market advantage in bringing karting to the Northwest Arkansas region.
About the Project: In addition to its sleek OTL Superleggero electric go-karts made in Italy, the space includes a Paddock Lounge cafe, an arcade and private event spaces for meetings, celebrations and other special occasions.
What the Judges Said: "This deal brought a dead building back to life," said Butch Gurganus, president of Focus Commercial Real Estate. "I chose this lease because I felt that the experiential and public-facing nature of the tenant will create value for the surrounding area and adjacent properties in a manner that will create a larger community benefit," added Clinton Bennett of Bennett Commercial Real Estate.
They Made it Happen: Dan Smith, with Colliers Arkansas, represented the tenant and Matt Ahart, of E&S Properties, represented the landlord.
CoStar Market Manager John Felch contributed.