Two-Building Flex
For Sale
$375,000
16503 Damascus Ar 72039 Highway, Damascus, AR 72039
Commercial / Industrial, Traditional, Damascus, AR
Property Size6,316 SF
Lot Size2.04 Acres
Price / SF$59.37
Days on Market447
Property Features for 16503 Damascus Ar 72039 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
20
Lot features
Level, Cleared, Not in Subdivision, Mountain View
Directions
From Conway take Hwy 65 North to Damascus. Property on the right. Look for Signs.
Subdivision
Van Buren County
Standard status
Active
Size
6,316 SF
Lot size
2.04 Acres
Taxes and HOA fees
Tax Description
32-09-13
Tax Annual Amount
1986
Legal Description
32-09-13
Amenities
portable parking garage
RV hookups
Building Details
Year built
2007
Floors in Building
2
Flooring type
Concrete
Roof type
Metal
Architectural style
Other
Listing Agency:
Arkansas Mountain Real Estate
(501) 745-2296
Listed By:
Kimberly Holland
(501) 654-4116
Added: Jul 15, 2025
Changed: Sep 5
Last Checked: Oct 4 at 8:06PM
MLS# 25028040
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 6,316-square-foot flex property includes two buildings on 2.04 acres, with a 2007 construction date. The improvements offer two bathrooms, a kitchenette, stained concrete flooring, and separate heating and cooling systems for each building. Two entrances create the potential to operate the buildings independently, while a portable parking garage adds supplemental on-site utility. One building may also accommodate residential quarters.
The property has frontage on Highway 65 in Damascus, Arkansas, and includes ample parking. Five RV hookups are located on the site, providing an additional property feature for commercial users or operators seeking supplemental rental functionality. Metal roofing and concrete flooring are also in place.
The property has frontage on Highway 65 in Damascus, Arkansas, and includes ample parking. Five RV hookups are located on the site, providing an additional property feature for commercial users or operators seeking supplemental rental functionality. Metal roofing and concrete flooring are also in place.
Key Highlights
- 6,316 square feet across two buildings on 2.04 acres
- Highway 65 frontage in Damascus, AR
- Five RV hookups on the property
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
$27,765
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
7.40%
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%
$555,300
$555.3K
Cap Rate 7%
$396,643
$396.6K
Cap Rate 9%
$308,500
$308.5K
Market Conditions
NOI Build-Up for 6,316 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
$41.7K $6.60/SF
− Vacancy
−$2.0K −$0.32/SF
EGI
$39.7K $6.28/SF
− OpEx
−$11.9K −$1.88/SF
NOI
$27.8K $4.40/SF
Area
Faulkner County, AR
Vacancy
4.85%
Lease Rate
$6.60 /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%
$555,300
Cap Rate 7%
$396,643
Cap Rate 9%
$308,500
Alternative Uses
Best Use
Flex RnD
$547.9K
$479.4K – $639.3K
NOI $38,355 @ 7.0% cap · market cap 10.23%
Second Best
Industrial
$396.6K
$347.1K – $462.8K
NOI $27,765 @ 7.0% cap · market cap 7.40%
Theoretical Best
Office A
$1.44M
$1.26M – $1.68M
NOI $100,843 @ 7.0% cap · market cap 26.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 72039, AR
2,254
Population
944
Households
2.4
Avg Household Size
40
Median Age
16%
College-Educated
89%
High-School Grad
61.1 sq mi
ZIP Area
37
Density / Sq Mi
$59,018
Median Household Income
$37,792
Median Earnings
$974
Median Rent
$147,200
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Flex space - Separate entrances and independent heating and cooling systems support flexible occupancy across the buildings.
Where is this flex space located?
The property is located at 16503 Damascus Ar 72039 Highway Damascus, AR.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: 6,316 square feet across two buildings on 2.04 acres; Highway 65 frontage in Damascus, AR; Five RV hookups on the property
