Downtown Mixed-Use Commercial
For Sale
$725,000
1001 Central Ave, Hot Springs, AR 71901
Downtown retail/office building with dedicated parking, frontage on Central Avenue, and two flexible suites.
Property Size3,915 SF
Price / SF$185.19
Days on Market97
Property Features for 1001 Central Ave
General Information
Standard status
Active
Size
3,915 SF
Total Parking Spaces
14
Additional Details
Road Access
Yes
Listing Agency:
McGraw Realtors - HS
(501) 350-6562
Listed By:
Susan Bariola
(501) 350-6562
Source:
Exprealty
Added: May 4
Changed: Jul 10
Last Checked: Aug 8 at 9:04AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of McGraw Realtors - HS
Investment Insights
Based on property information with market context.
This commercial building offers a versatile, divided layout with two separate commercial spaces. It features two commercial kitchen areas, four total restrooms, and separate utility systems for each side, including central heat and air, alarm systems, and hot water tanks. The configuration supports a range of uses such as restaurant, retail, office, service, or hospitality, depending on how the suites are operated.
The property is located at 1001 Central Avenue in downtown Hot Springs with frontage directly on Central Avenue. It is described as having easy access and visibility, with 14 dedicated parking spaces available onsite. The building sits in a busy commercial and tourism area with steady traffic from locals and visitors.
With two independent spaces and dedicated parking, the property can suit tenants or owners looking for flexible operations, suite-based leasing, or multi-use occupancy. The separate utility systems and restroom count support commercial programming across either or both areas, making it practical for businesses that need more than one distinct environment within the same building.
The property is located at 1001 Central Avenue in downtown Hot Springs with frontage directly on Central Avenue. It is described as having easy access and visibility, with 14 dedicated parking spaces available onsite. The building sits in a busy commercial and tourism area with steady traffic from locals and visitors.
With two independent spaces and dedicated parking, the property can suit tenants or owners looking for flexible operations, suite-based leasing, or multi-use occupancy. The separate utility systems and restroom count support commercial programming across either or both areas, making it practical for businesses that need more than one distinct environment within the same building.
Key Highlights
- 3,915 SF downtown Hot Springs commercial building with frontage directly on Central Avenue
- 14 dedicated parking spaces on‑site—hard‑to‑find parking for a downtown property
- Building divided into two separate commercial spaces for flexible use
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
$41,401
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
5.71%
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%
$828,020
$828.0K
Cap Rate 7%
$591,443
$591.4K
Cap Rate 9%
$460,011
$460.0K
Market Conditions
NOI Build-Up for 3,915 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
$58.7K $15.00/SF
− Vacancy
−$3.5K −$0.90/SF
EGI
$55.2K $14.10/SF
− OpEx
−$13.8K −$3.53/SF
NOI
$41.4K $10.58/SF
Area
Garland County, AR
Vacancy
6.00%
Lease Rate
$15.00 /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%
$828,020
Cap Rate 7%
$591,443
Cap Rate 9%
$460,011
Alternative Uses
Best Use
Specialty Retail
$591.4K
$517.5K – $690.0K
NOI $41,401 @ 7.0% cap · market cap 5.71%
Second Best
Retail
$441.6K
$386.4K – $515.2K
NOI $30,913 @ 7.0% cap · market cap 4.26%
Theoretical Best
Office A
$716.0K
$626.5K – $835.3K
NOI $50,118 @ 7.0% cap · market cap 6.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,634
Businesses Nearby
62k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 63%
Shops & Services 32%
Beauty & Spa 3%
Electronics 2%
McDonald's
Dining
18,055 visits/mo
0.4 miles
Burger King
Dining
9,887 visits/mo
0.2 miles
Popeyes Louisiana Kitchen
Dining
7,854 visits/mo
0.3 miles
Valero Energy
Shops & Services
5,905 visits/mo
0.1 miles
Family Dollar
Shops & Services
5,119 visits/mo
0.3 miles
Demographics for 71901, AR
29,363
Population
14,952
Households
2
Avg Household Size
43
Median Age
26%
College-Educated
88%
High-School Grad
101.9 sq mi
ZIP Area
288
Density / Sq Mi
$52,410
Median Household Income
$35,604
Median Earnings
$797
Median Rent
$173,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Downtown retail/office building with dedicated parking, frontage on Central Avenue, and two flexible suites.
Where is this conventional restaurant located?
The property is located at 1001 Central Ave Hot Springs, AR.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: 3,915 SF downtown Hot Springs commercial building with frontage directly on Central Avenue; 14 dedicated parking spaces on‑site—hard‑to‑find parking for a downtown property; Building divided into two separate commercial spaces for flexible use
