NNN-Leased Ground-Floor
For Sale
Contact for pricing
1900 Malvern Ave, Hot Springs, AR 71901
Fully renovated ground-floor clinic on a long-term NNN lease within the Hot Springs medical corridor, zoned PDD.
Property Size6,650 SF
Price / SF$224.81
Days on Market343
Property Features for 1900 Malvern Ave
General Information
Standard status
Active
Size
6,650 SF
Property subtype
OFFICE
Zoning
PDD
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
connected to National Park Medical Center
Building Details
Tenancy
Single
Listing Agency:
Kelley Commercial Partners - Little Rock
(501) 944-0832
Listed By:
Bill Puddephatt · License #AB00033967
(501) 944-0832
Source:
Moodyscre
Added: Sep 3, 2025
Changed: Jul 30
Last Checked: Jul 30 at 5:29PM
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 Kelley Commercial Partners - Little Rock
Investment Insights
Based on property information with market context.
Fully renovated ground-floor clinic space designed for a Heart Clinic, located on the first floor of the Ouachita Professional Medical Building (HPR) in Hot Springs’ medical corridor. The property is offered on a long-term NNN lease with annual escalations to an established credit tenant. The clinic occupies 6,650 SF.
The clinic is connected to National Park Medical Center and sits near convenient access points for patients and staff, with easy access to MLK Expressway and major arterials. It is located at a signalized intersection at Malvern Avenue & Hollywood Drive, and the surrounding area includes medical offices, a hospital, Hot Springs Country Club, Oaklawn Casino Resort, banks, restaurants, and services.
Zoned PDD, the space is positioned for continued medical use within a dense healthcare environment.
The clinic is connected to National Park Medical Center and sits near convenient access points for patients and staff, with easy access to MLK Expressway and major arterials. It is located at a signalized intersection at Malvern Avenue & Hollywood Drive, and the surrounding area includes medical offices, a hospital, Hot Springs Country Club, Oaklawn Casino Resort, banks, restaurants, and services.
Zoned PDD, the space is positioned for continued medical use within a dense healthcare environment.
Key Highlights
- 6,650 SF fully renovated ground‑floor clinic space
- Long‑term NNN lease with annual escalations to an established credit tenant
- First‑floor location within the Ouachita Professional Medical Building (HPR)
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
$64,219
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
4.30%
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%
$1,284,380
$1.3M
Cap Rate 7%
$917,414
$917.4K
Cap Rate 9%
$713,544
$713.5K
Market Conditions
NOI Build-Up for 6,650 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
$115.7K $17.40/SF
− Vacancy
−$8.7K −$1.31/SF
EGI
$107.0K $16.10/SF
− OpEx
−$42.8K −$6.44/SF
NOI
$64.2K $9.66/SF
Area
Garland County, AR
Vacancy
7.50%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
40.00%
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%
$1,284,380
Cap Rate 7%
$917,414
Cap Rate 9%
$713,544
Alternative Uses
Best Use
Healthcare Medical
$917.4K
$802.7K – $1.07M
NOI $64,219 @ 7.0% cap · market cap 4.30%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.22M
$1.06M – $1.42M
NOI $85,131 @ 7.0% cap · market cap 5.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,639
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical center - Fully renovated ground-floor clinic on a long-term NNN lease within the Hot Springs medical corridor, zoned PDD.
Where is this medical center located?
The property is located at 1900 Malvern Ave Hot Springs, AR.
What is the asking price?
The asking price for this property is $1,495,000.
What are key features of this property?
This property features: 6,650 SF fully renovated ground‑floor clinic space; Long‑term NNN lease with annual escalations to an established credit tenant; First‑floor location within the Ouachita Professional Medical Building (HPR)
