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Kevin Gerlt Construction Inc. is shifting its focus from Fayetteville infill work to larger custom homes in the Prairie Grove and Farmington area, where land remains more available and buyers can get more space. The Fayetteville-based builder’s centerpiece is The Reserve at Cannon Hollow, a gated 21-lot subdivision on 28 acres near Prairie Grove and Farmington. Talk Business & Politics reports the development could represent $20 million to $25 million in construction, with homes planned at roughly 3,000 to 5,000 square feet and priced about $800,000 to $1.2 million. The move reflects a widening gap between national builders’ scale and local builders’ costs, as well as buyers’ willingness to trade some Fayetteville convenience for privacy, larger lots and a quieter neighborhood.
Why is a Fayetteville builder moving to Prairie Grove?
Matt Gerlt, owner of Kevin Gerlt Construction, says the Fayetteville market has become difficult for a smaller builder over the past five to 10 years. National homebuilders can often pay more for development land and sell completed houses for less because of their purchasing power and volume. “It’s created kind of a squeeze there,” Gerlt told Talk Business & Politics, describing a market in which national companies buy land for more than his company would and sell homes for less.
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At the same time, land, vendor and supplier costs have risen, mortgage rates have increased, and Fayetteville has limited undeveloped land. Gerlt’s company has completed infill projects by replacing an older house with one or more new homes, but he says higher prices are encouraging buyers to look toward Farmington and Prairie Grove.
The strategy is not an exit from Northwest Arkansas. It is a move toward a segment where a local builder can compete on lot size, customization and neighborhood character rather than on the lowest production-home price.
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What is The Reserve at Cannon Hollow?
The Reserve at Cannon Hollow is a planned gated subdivision outside Prairie Grove, marketed by KGC Homes as a custom-home community with approximately one-acre homesites. The project’s reported scope is:
| Item | Reported plan |
|---|---|
| Location | Near Prairie Grove and Farmington, outside Fayetteville |
| Land area | 28 acres |
| Lots | 21 gated custom-home lots |
| Typical homesite | Roughly 1 acre |
| Planned home size | 3,000 to 5,000 square feet |
| Planned price range | About $800,000 to $1.2 million |
| Estimated project value | $20 million to $25 million, according to 2026 reporting |
| Reported Fayetteville commute | Approximately 13 to 14 minutes via the Highway 62 corridor |
About eight to 10 people are reported to be committed to building the addition. Kevin Gerlt Construction also recently completed a 180-home addition in Prairie Grove, giving the company an established local project history as it pursues the smaller, higher-customization community.
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The Reserve’s planned prices are not presented as a blanket promise that every Prairie Grove home is cheaper than every Fayetteville home. Instead, the development targets a different value proposition: a large custom house on about an acre, with gated access and lower neighborhood density. Buyers comparing locations should examine the whole package rather than price per square foot alone.
| Decision factor | Fayetteville | Prairie Grove/Farmington strategy |
|---|---|---|
| Land | More constrained and expensive, according to Gerlt | More room for large homesites and new subdivisions |
| Home format | Infill and denser neighborhoods are more common | Custom homes planned at 3,000–5,000 square feet |
| Lot size | Often smaller where infill is used | Approximately one acre at Cannon Hollow |
| Privacy | Closer-in neighborhoods and urban services | Gated setting and more separation between homes |
| Commute | Closest to Fayetteville jobs and services | Reportedly 13–14 minutes to Fayetteville by Highway 62 |
| Amenities | More immediate access to restaurants, entertainment and the Razorback Greenway | Quieter setting, with a longer trip to those amenities |
Actual affordability will depend on financing, construction selections, taxes, insurance and future infrastructure. The published $800,000-to-$1.2-million range is a project plan, not a guaranteed final price for every home.
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How far is Prairie Grove from Fayetteville?
Talk Business & Politics reports a 13- to 14-minute drive from the planned neighborhood to Fayetteville using the Highway 62 corridor. That estimate describes the route from the development to Fayetteville and can vary with the exact destination, traffic, weather and construction. A buyer commuting to a job, school or medical appointment should check the trip at the times they regularly travel.
What does the custom-home model offer buyers?
Gerlt describes Cannon Hollow as an effort to create a small community rather than simply a collection of large houses. The concept combines one-acre lots, a gate and custom construction with an informal social setting where families and friends know one another, children can ride bicycles and residents can hold neighborhood events.
The intended buyer mix is described as roughly even between young families and retired couples. Families may want room for children, play areas and home offices; retirees may want space for visiting children and grandchildren without moving into a dense subdivision. Gerlt says interest from Fayetteville residents has been stronger than he initially expected.
That appeal comes with a trade-off. Prairie Grove-area residents gain more breathing room and a quieter setting, while Fayetteville residents retain closer access to employment centers, restaurants, entertainment and the Razorback Greenway. Buyers must decide how often they will use those amenities and how much land and privacy are worth on every trip.
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Why are national homebuilders squeezing local builders?
Large builders can spread design, purchasing, sales and construction costs across many homes. Their ability to pay more for land while pricing finished homes aggressively can remove the middle-market projects that once fit a smaller custom builder’s business. Local companies also face higher material, subcontractor and land costs, but generally do not have the same volume leverage.
Gerlt’s response is to move up-market and outward: build fewer homes, make each one larger and more individualized, and select locations where land supports a meaningful difference in lot size. The approach does not eliminate cost pressure, but it changes what the buyer is paying for.
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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteWhat should buyers ask before reserving a custom lot?
- What is included in the stated price? Confirm the base specifications, allowances, site work, driveway, landscaping, utility connections and any gate or association charges.
- How will the lot affect the budget? Ask about grading, drainage, septic or sewer service, retaining walls and construction-access requirements.
- What controls the neighborhood? Review covenants, architectural rules, minimum sizes, fencing policies, rental restrictions and maintenance responsibilities.
- How is the schedule handled? Get milestone dates for design, permitting, site preparation, framing, inspections and closing, along with the process for change orders.
- Who verifies construction quality? Establish inspection rights, warranty coverage and the procedure for documenting defects before and after closing.
A comprehensive construction reference such as The Complete Visual Guide to Building a House, seventh edition by John Carroll, can help homeowners understand sequencing and quality questions; Abrams lists its publication date as March 18, 2014. It does not replace project-specific advice from the builder, lender, surveyor, inspector or attorney.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What does this shift mean for Northwest Arkansas?
The Cannon Hollow plan illustrates how regional growth is dividing the housing market into distinct choices. Fayetteville’s land constraints and amenity access support denser, closer-in development, while Prairie Grove and Farmington can attract buyers seeking larger lots and custom space. For local builders, that geography may determine whether they compete directly with national production builders or create a smaller community with a different reason to buy.
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Frequently Asked Questions
Who is developing The Reserve at Cannon Hollow?
Kevin Gerlt Construction Inc., operating as KGC Homes, is the Fayetteville-based builder behind the planned subdivision. The company presents itself as a Northwest Arkansas custom-home builder.
How many homes are planned at Cannon Hollow?
The project is planned for 21 gated lots on 28 acres. Each homesite is described as roughly one acre, although final site dimensions can vary within a subdivision.
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What is the expected price of a Cannon Hollow home?
Reported plans place homes at about $800,000 to $1.2 million. That range is subject to design choices, site conditions, financing and any changes before construction contracts are finalized.
Is Prairie Grove a good alternative for Fayetteville commuters?
The reported drive to Fayetteville is about 13 to 14 minutes by Highway 62, but commute suitability depends on the destination and travel time. Buyers should test the route during their actual work or school schedule.
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