Office Building with House and
For Sale
$675,000
120-124 Hill Street, Hot Springs, AR 71901
Commercially zoned 1.22-acre site with an office building, a house, and a vacant lot.
Property Size2,772 SF
Lot Size1.22 Acres
Days on Market141
Property Features for 120-124 Hill Street
General Information
Standard status
Active
Size
2,772 SF
Total Parking Spaces
15
Lot size
1.22 Acres
Property subtype
Commercial
Zoning
General Commercial
Additional Details
Office Units
2
Building Details
Building Size
2,772 SF
Year Built
1975
Stories
1
Listing Agency:
Century 21 Parker & Scroggins Realty - Hot Springs
(501) 515-4870
Listed By:
Jean Clare Dickerson · License #EB00084023
(501) 515-4870
Source:
Proeliterealty
Added: Mar 24
Changed: Aug 8
Last Checked: Aug 11 at 1:29PM
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 Century 21 Parker & Scroggins Realty - Hot Springs
Investment Insights
Based on property information with market context.
This 1.22-acre property offers three commercially zoned parcels for a range of redevelopment or immediate use scenarios. The site includes an existing office building plus a house, along with a vacant lot that adds flexibility.
120 Hill Street consists of Suites A & B. Suite A was built in 1975, and the roof was replaced in 2024; it is currently occupied by Mobility Prosthetics under a two-year lease. Suite B is described as an office/apartment with a full bathroom and kitchen.
124 Hill Street is a 1,280 square-foot home built in 1938 that has been updated, including a new HVAC system. The current tenant is month-to-month. The property is adjacent to the Gateway Reviltilization Project on Malvern Ave and is described as one block from the Greenway Trail along Hot Springs Creek.
120 Hill Street consists of Suites A & B. Suite A was built in 1975, and the roof was replaced in 2024; it is currently occupied by Mobility Prosthetics under a two-year lease. Suite B is described as an office/apartment with a full bathroom and kitchen.
124 Hill Street is a 1,280 square-foot home built in 1938 that has been updated, including a new HVAC system. The current tenant is month-to-month. The property is adjacent to the Gateway Reviltilization Project on Malvern Ave and is described as one block from the Greenway Trail along Hot Springs Creek.
Key Highlights
- 1.22‑acre commercial site in city limits with three parcels available near downtown Hot Springs
- Includes an office building at 120 Hill St (built 1975) with roof replaced in 2024
- 120 Hill St Suite A currently leased to Mobility Prosthetics (2‑year lease)
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
$26,615
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
3.94%
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%
$532,300
$532.3K
Cap Rate 7%
$380,214
$380.2K
Cap Rate 9%
$295,722
$295.7K
Market Conditions
NOI Build-Up for 2,772 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
$39.9K $14.40/SF
− Vacancy
−$4.4K −$1.60/SF
EGI
$35.5K $12.80/SF
− OpEx
−$8.9K −$3.20/SF
NOI
$26.6K $9.60/SF
Area
Garland County, AR
Vacancy
11.10%
Lease Rate
$14.40 /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%
$532,300
Cap Rate 7%
$380,214
Cap Rate 9%
$295,722
Alternative Uses
Best Use
Office B
$380.2K
$332.7K – $443.6K
NOI $26,615 @ 7.0% cap · market cap 3.94%
Second Best
Mixed Use
$191.3K
$167.4K – $223.2K
NOI $13,389 @ 7.0% cap · market cap 1.98%
Theoretical Best
Office A
$506.9K
$443.6K – $591.4K
NOI $35,486 @ 7.0% cap · market cap 5.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
1,599
Businesses Nearby
Explore this area
Business Placement
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Commercially zoned 1.22-acre site with an office building, a house, and a vacant lot.
Where is this office units located?
The property is located at 120-124 Hill Street Hot Springs, AR.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: 1.22‑acre commercial site in city limits with three parcels available near downtown Hot Springs; Includes an office building at 120 Hill St (built 1975) with roof replaced in 2024; 120 Hill St Suite A currently leased to Mobility Prosthetics (2‑year lease)
