Strip Mall with Two Established
For Sale
$450,000
1425 S University Ave, Little Rock, AR 72204
COMMERCIAL - Little Rock, AR
Property Size2,938 SF
Lot Size0.24 Acres
Price / SF$153.17
Days on Market274
Property Features for 1425 S University Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
General Commercial
Parking
10
Lot features
Level
Directions
From I-630 go south on University, building is on the left.
Subdivision
Little Rock
Standard status
Active
Size
2,938 SF
Lot size
0.24 Acres
Taxes and HOA fees
Tax Description
Lot 5 Block B
Tax Annual Amount
3476
Legal Description
Lot 5 Block B
Building Details
Year built
1985
Floors in Building
1
Flooring type
Vinyl, Tile, Carpet - Partial
Roof type
Metal
Architectural style
Other
Listing Agency:
LPT Realty · RE/MAX International
(501) 291-3841
Listed By:
Kelly Wei · License #EB00074530
(501) 860-8306
Added: Nov 11, 2025
Changed: Aug 4
Last Checked: Aug 12 at 11:06AM
MLS# 25045160
Copyright © 2026 Cooperative Arkansas Realtors Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This strip mall investment is 100% leased and income-producing, occupied by two established tenants. The property is well-maintained and was built in 1985. Interior finishes include partial carpet, tile, and vinyl flooring, and the building has a metal roof.
1425 S University Ave places the property in Central Little Rock, with convenient highway access. It is about 2 minutes from I-630, 5 minutes from I-40, and approximately 14 minutes from Bill and Hillary Clinton National Airport.
With a compact footprint on 0.24 acres and 2,938 square feet, the property is designed for straightforward retail tenancy and offers an immediate, leased occupancy profile for an investor or future owner-user.
1425 S University Ave places the property in Central Little Rock, with convenient highway access. It is about 2 minutes from I-630, 5 minutes from I-40, and approximately 14 minutes from Bill and Hillary Clinton National Airport.
With a compact footprint on 0.24 acres and 2,938 square feet, the property is designed for straightforward retail tenancy and offers an immediate, leased occupancy profile for an investor or future owner-user.
Key Highlights
- 100% leased strip mall occupied by two established tenants
- 0.24‑acre site with 2,938 SF of building area
- Built in 1985 with a metal roof
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$32,942
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.32%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$658,840
$658.8K
Cap Rate 7%
$470,600
$470.6K
Cap Rate 9%
$366,022
$366.0K
Market Conditions
NOI Build-Up for 2,938 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$50.1K $17.04/SF
− Vacancy
−$3.0K −$1.02/SF
EGI
$47.1K $16.02/SF
− OpEx
−$14.1K −$4.81/SF
NOI
$32.9K $11.21/SF
Area
Little Rock, AR
Vacancy
6.00%
Lease Rate
$17.04 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$658,840
Cap Rate 7%
$470,600
Cap Rate 9%
$366,022
Alternative Uses
Best Use
Retail
$470.6K
$411.8K – $549.0K
NOI $32,942 @ 7.0% cap · market cap 7.32%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$533.7K
$467.0K – $622.7K
NOI $37,360 @ 7.0% cap · market cap 8.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,070
Businesses Nearby
Explore this area
Business Placement
Demographics for 72204, AR
31,564
Population
14,570
Households
2.2
Avg Household Size
37
Median Age
22%
College-Educated
89%
High-School Grad
15.2 sq mi
ZIP Area
2,077
Density / Sq Mi
$39,088
Median Household Income
$29,733
Median Earnings
$1,016
Median Rent
$117,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Strip mall - Well-maintained strip mall that is 100% leased with two established tenants and a metal roof built in 1985.
Where is this strip mall located?
The property is located at 1425 S University Ave Little Rock, AR.
What is the asking price?
The asking price for this property is $450,000.
What are key features of this property?
This property features: 100% leased strip mall occupied by two established tenants; 0.24‑acre site with 2,938 SF of building area; Built in 1985 with a metal roof
