Two-Tenant Storefront
For Sale
$450,000
1425 S University Ave, Little Rock, AR 72204
Fully leased commercial building with convenient access to I-630, I-40, and Bill and Hillary Clinton National Airport.
Property Size2,938 SF
Price / SF$153.17
Days on Market32
Property Features for 1425 S University Ave
General Information
Standard status
Active
Size
2,938 SF
Occupancy
100%
Additional Details
Highway Access
Yes
Building Details
Year Built
1985
Tenancy
Multi
Listing Agency:
LPT Realty
Listed By:
Kelly Wei · License #EB00074530
(501) 860-8306
Source:
Signaturearkansas
Added: Aug 8
Changed: Sep 5
Last Checked: Sep 7 at 12:01PM
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 LPT Realty
Investment Insights
Based on property information with market context.
This storefront property at 1425 S University Ave in Little Rock is fully leased to two established tenants. The commercial building was constructed in 1985 and is offered as an occupied investment asset.
Regional access is a notable feature, with the property approximately 2 minutes from I-630, 5 minutes from I-40, and 14 minutes from Bill and Hillary Clinton National Airport. Its position along S University Ave places the building within a commercial corridor serving the surrounding area.
Regional access is a notable feature, with the property approximately 2 minutes from I-630, 5 minutes from I-40, and 14 minutes from Bill and Hillary Clinton National Airport. Its position along S University Ave places the building within a commercial corridor serving the surrounding area.
Key Highlights
- 100% leased to two established tenants
- Storefront property at 1425 S University Ave, Little Rock, AR 72204
- Built in 1985
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
1,045
Businesses Nearby
57k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 67%
Shops & Services 31%
Home Improvements & Furnishings 2%
Kroger
Groceries
38,391 visits/mo
0.4 miles
Shell
Shops & Services
4,024 visits/mo
0.4 miles
Bank of America
Shops & Services
3,368 visits/mo
0.4 miles
The UPS Store
Shops & Services
3,118 visits/mo
0.4 miles
Regions Bank
Shops & Services
2,520 visits/mo
0.4 miles
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.
Similar Off Market Nearby
- Floral Express Flowers & Events — 6800 Cantrell Rd, Little Rock, AR 72207
- Kroger Floral — 1900 N Polk St, Little Rock, AR 72207
Frequently Asked Questions
What type of property is this?
Storefront property - Fully leased commercial building with convenient access to I-630, I-40, and Bill and Hillary Clinton National Airport.
Where is this storefront property 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 to two established tenants; Storefront property at 1425 S University Ave, Little Rock, AR 72204; Built in 1985
