Centennial Bank players wheel, deal.

LONG BEFORE MAKING THE DEAL TO sell Centennial Bancshares, its major investors did a lot of wheeling and dealing in upscale Little Rock homes.

The biggest winner appears to be John Olaimey, Centennial's executive vice president and fifth-largest shareholder.

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In 15 months, Olaimey and his wife, Timothy Ann, owned and sold three houses before ending up with an 8,692-SF mansion on 5 acres in west Little Rock's Chenal Downs neighborhood.

The stated purchase price of the 5-acre residential spread was $2.5 million, making it the most expensive home sold in Pulaski County last year, although the tax appraisal is significantly lower.

That's a big finish considering the starting point: a 2,775-SF home in west Little Rock's Brodie Creek neighborhood that the Olaimeys sold for $315,000 on May 20, 2005.

Along the way, two other Centennial shareholders took what appear to be sizable losses on houses they sold Olaimey.

John Olaimey said he didn't plan on owning a string of houses en route to Chenal Downs. The original idea was to move into a 4,723-SF house in Chenal Valley that the Olaimeys purchased for $595,000 on Feb. 15, 2005.

Instead, the house was resold the same day for $695,000.

"That one was being in the right place at the right time," Olaimey said. "We planned on moving into it, but we got a higher offer before we closed."

Olaimey acquired the Chenal Valley home from LRG LLC, led by Rick Ferguson, an upscale homebuilder and the largest shareholder in Centennial Bank. Ferguson took ownership of the house from Joe White as part of a swap valued at $665,000 on Feb. 12, 2003. In return, Ferguson transferred ownership of three lots in his Valley Falls Estates development to White's Rack Holdings LLC.

Those three lots ended up moving back to Ferguson-related entities in subsequent deals with Rack Holdings.

On paper, Ferguson's LRG LLC lost $70,000 in the Chenal Valley deal with Olaimey.

Olaimey's next home buy also involved Ferguson.

The residence in play here was a 7,234-SF house in Valley Falls Estates where Ferguson and his family lived. Stated purchase price: $2.2 million on June 30, 2005.

Olaimey never moved into this house either, although he owned it for more than a year.

"We planned on moving into Rick's house after he finished his new house," Olaimey said. "But we had already sold our house [in Brodie Creek], so we rented another house that Rick had."

That rental house was the one in Chenal Downs that the family ultimately purchased and now lives in. It formerly had been the home of Little Rock attorney Gene Cauley, the second-largest shareholder in Centennial Bank. It was deeded to a limited liability company called 2610 Acres LLC, which is associated with both Ferguson and Cauley.

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While Olaimey was renting from 2610 Acres LLC, Ferguson was renting the Valley Falls residence from Olaimey until moving into his new 10,000-SF home under construction, also in Valley Falls Estates. On July 25, 2006, Olaimey sold his Valley Falls house for $2.3 million.

A month later, Olaimey purchased the Chenal Downs house his family had been renting for more than a year.

On paper, 2610 Acres LLC lost $250,000 on the $2.5 million transaction. The Chenal Downs property carried a valuation of $2.75 million when 2610 Acres took ownership on March 25, 2005, as part of a property swap with SEC WLR Holdings LLC, led by Cauley.

"Some of the deals turned out well for me, and others didn't," Ferguson said. "I made money on some and lost money on others."

The other object of the swap, more than 60 acres in west Pulaski County, also carried a valuation of $2.75 million when its ownership moved from 2610 Acres LLC to SEC WLR Holdings.

At the time of the swap in 2005, Cauley signed off as manager of 2610 Acres LLC. But when the house was transferred in 2006 to Olaimey, Ferguson signed off as manager of the limited liability company.

For tax assessment purposes, the county doesn't recognize the 2005 property swap value of $2.75 million. The Pulaski County assessor does note the Olaimey transaction valued at $2.5 million.

However, the assessor's office ignores this valuation as well, labeling the transaction an "anomaly."

"We don't have any comparable sales to support it," said Bob Clay, senior commercial analyst for the assessor's office.

On the county books, the property bears an appraised value for the land and improvements of $1.45 million. That's a number more in line with the home's 2002 construction costs.

Not only does the county choose to ignore the stated $2.5 million sales price for valuation, the assessor's office doesn't consider the property's $2 million mortgage from Twin City Bank of North Little Rock as relevant either.

Although the Olaimey house is being taxed on only 58 percent of its purchase price, the property tax bill is still $14,728 a year.

A nearby Chenal Downs home traveled a somewhat different path.

Steve Wortman, a Centennial Bank investor who lives in Valley Falls Estates, took ownership of a 6,038 -SF Chenal Downs home in a transaction valued at $2 million on July 13, 2006.

The seller was Rick Ferguson's Waterview Estates LLC.

Wortman couldn't be reached for comment.

Unlike Olaimey's home, the Pulaski County assessor opted to use a cost approach for valuing the Wortman property in Chenal Downs: $1.97 million.

A little more than a year after buying it, Wortman has put the Chenal Downs house up for sale. The listing price of $1.7 million suggests market forces are at work.

Centennial Payday

How much is the announced sale of Centennial Bancshares of Little Rock worth to its largest investors?

Assuming stock in acquirer Home BancShares of Conway remains in the $22 range:

* Rick Ferguson, 33.26 percent stake, $8.315 million;

* Gene Cauley, 32.74 percent, $ 8.185 million;

* Steve Wortman, 12.33 percent, $3.083 million;

* CEO Chris Roberts, 8.23 percent, $2.058 million; and

* Executive Vice President John Olaimey, 4.03 percent, $1.008 million.

By George Waldon

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Timeline 

Feb. 15, 2005

LRG LLC, led by Rick Ferguson, sells a 4,723-SF home in west Little Rock's Chenal Valley neighborhood to John and Timothy Ann Olaimey for $595,000. LRG purchased the property for a reported $665,000 in February 2003 from Joe and Kimberly White.

On the same day, the Olaimeys sell the residence for $695,000 to Frances Catenacci.

May 20, 2005

The Olaimeys sell their 2,775-SF home in west Little Rock's Brodie Creek neighborhood for $315,000 to Matthew and Elizabeth Wahl.

June 30, 2005

Rick and Deanna Ferguson sell their 7,234-SF home in west Little Rock's Valley Falls Estates neighborhood to the Olaimeys for a reported $2.2 million.

July 25, 2006

The Olaimeys sell the house for $2.3 million to Eugene and Jamie DeJordy.

August 31, 2006

The Olaimeys buy an 8,692-SF home in west little Rock's Chenal Downs neighborhood for a reported $2.5 million from 2610 Acres LLC, led by Rick Ferguson.

2610 Acres acquired the property for a reported $2.75 million on March 25, 2005, from SEC WLR Holdings LLC, led by Gene Cauley.