Multi-Story Office
For Sale
$3,650,000
2 N College Avenue, Fayetteville, AR 72701
CommercialSale, Fayetteville, AR
Property Size16,988 SF
Lot Size0.46 Acres
Price / SF$214.73
Days on Market190
Property Features for 2 N College Avenue
General Information
Property type
Commercial Sale
Property subtype
Office
Rooms
Basement
Lot features
Central Business District
Directions
From I-49, take exit 67A for US-71B S/College Ave toward Fayetteville. Continue south on US-71B S/N College Ave for approximately 3 miles. The property, located at 2 N College Ave, will be on your right, just past E Meadow St and directly across from the Historic Washington County Courthouse. Look for the distinctive 1905 building with its prominent facade.
Standard status
Active
APN
765-12715-000
Size
16,998 SF
Lot size
0.46 Acres
Taxes and HOA fees
Tax Description
P L 244 NW 8 FT S SIDE & 75 FT OF 25 86/240 FURTHER DESCRIBED FROM 2010-16225 AS: PART OF THE SW 1/4 OF THE NW 1/4 OF SECTION 15, T-16-N, R-30-W, WASHINGTON COUNTY, ARKANSAS, BEING MORE PARTICULARLY DESCRIBED ON A PLAT-OF-SURVEY BY ALAN REID & ASSOCI ATES
Tax Annual Amount
30613
Legal Description
P L 244 NW 8 FT S SIDE & 75 FT OF 25 86/240 FURTHER DESCRIBED FROM 2010-16225 AS: PART OF THE SW 1/4 OF THE NW 1/4 OF SECTION 15, T-16-N, R-30-W, WASHINGTON COUNTY, ARKANSAS, BEING MORE PARTICULARLY DESCRIBED ON A PLAT-OF-SURVEY BY ALAN REID & ASSOCI ATES
Building Details
Year built
1905
Listing Agency:
CBRE, Inc-Fayetteville
(479) 301-2520
Listed By:
Hunter Groce · License #SA00083831
(479) 249-9520
Added: Mar 8
Changed: Sep 3
Last Checked: Sep 14 at 6:06PM
MLS# 1338558
Copyright © 2026 ArkansasONE MLS. 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 office building at 2 N College Avenue includes three floors of office space plus a basement and 30 dedicated parking spaces. Constructed in 1905, the property is fully leased under an agreement extending through July 2027. The building occupies a 0.455-acre site in Fayetteville.
The property is positioned on College Avenue near the University of Arkansas and the Washington County Courthouse. Its central Fayetteville setting provides an established downtown office location for the existing tenancy.
The property is positioned on College Avenue near the University of Arkansas and the Washington County Courthouse. Its central Fayetteville setting provides an established downtown office location for the existing tenancy.
Key Highlights
- Fully leased through July 2027
- Three floors of office space plus a basement
- 30 dedicated parking spaces
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
$256,643
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
7.03%
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%
$5,132,860
$5.1M
Cap Rate 7%
$3,666,329
$3.7M
Cap Rate 9%
$2,851,589
$2.9M
Market Conditions
NOI Build-Up for 16,998 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
$367.2K $21.60/SF
− Vacancy
−$25.0K −$1.47/SF
EGI
$342.2K $20.13/SF
− OpEx
−$85.5K −$5.03/SF
NOI
$256.6K $15.10/SF
Area
Washington County, AR
Vacancy
6.80%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
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%
$5,132,860
Cap Rate 7%
$3,666,329
Cap Rate 9%
$2,851,589
Alternative Uses
Best Use
Office B
$3.67M
$3.21M – $4.28M
NOI $256,643 @ 7.0% cap · market cap 7.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.56M
$3.99M – $5.32M
NOI $319,377 @ 7.0% cap · market cap 8.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
1,930
Businesses Nearby
Explore this area
Business Placement
Demographics for 72701, AR
48,269
Population
20,057
Households
2.4
Avg Household Size
28
Median Age
42%
College-Educated
93%
High-School Grad
126.0 sq mi
ZIP Area
383
Density / Sq Mi
$50,413
Median Household Income
$27,305
Median Earnings
$973
Median Rent
$323,900
Median Home Value
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Fully leased office property with three floors, a basement, and dedicated parking near the University of Arkansas.
Where is this office building located?
The property is located at 2 N College Avenue Fayetteville, AR.
What is the asking price?
The asking price for this property is $3,650,000.
What are key features of this property?
This property features: Fully leased through July 2027; Three floors of office space plus a basement; 30 dedicated parking spaces
