By Rob Moritz
Arkansas News Bureau

LITTLE ROCK – The Arkansas Teacher Retirement System board voted today to put a $26 million price tag on the Victory Building, nearly $10 million more than an offer the system has on the table.

The board voted to hire Rector Phillips Inc. as broker for the four-story, 262,342 square-foot building just east of the state Capitol.

ATRS Executive Director George Hopkins said the board felt the building could sell for more than the $16.9 million offered in August by Stephen L. LaFrance Pharmacy Inc., owner of Pine Bluff-based USA Drug.

“That’s not what we’re looking for,” Hopkins said in reference to the LaFrance offer. “There’s obviously some interest from people in buying our building and we felt like as a fiduciary and prudent investor we needed to get a broker to represent our interests.”

The building, which houses KARK-TV, the Arkansas Trucking Association, Arkansas Health Care Association and International Paper, has an 85 percent occupancy rate, Hopkins said.

“We’re getting a 7 percent to 8 percent return on our investment right now,” he said.

USA Drug is a convenience store and pharmacy chain that operates more than 160 stores in Arkansas, Oklahoma, Mississippi, Missouri and Tennessee. It was founded in 1986 and has more than 4,000 employees.

The board today also agreed to lease the old Rose Law Firm building at 720 W. Third Street in Little Rock to businessman Jennings Osborne for $12,450 a month.

Osborne plans to locate Osborne Research Center LLC in the building, according to documents provided to the board.

Hopkins said the lease is for three years but Osborne has the option to buy the building after the first year.