Listing Agency: O'Neal Real Estate- Fort Smith r***@gmail.com Show Phone

Listed By: Team Williams · License #SA00088466 Show Phone

Source: Assurancerealtyfsm

Added: Jul 20 Changed: Aug 31 Last Checked: Aug 31 at 5:21PM

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Investment Insights

Based on property information with market context.

Located at 1907 Horne Street in Lavaca, Arkansas, this flex property includes an insulated red iron building on a concrete slab. The approximately 2,400-square-foot interior has 17-foot sidewalls, oversized garage doors, upstairs storage, and a layout suited to workspace, vehicle storage, equipment handling, or commercial operations.

The approximately one-half-acre property includes 220-volt electrical service and RV hookups. The building measures 40 feet by 60 feet, providing an open configuration that can accommodate multiple work areas and storage arrangements. R2 zoning applies to the site.

Key Highlights

• Approximately 2,400 SF insulated red iron flex building
• Approximately one‑half acre with a 40' x 60' building footprint
• 17‑foot sidewalls and oversized garage doors

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

$9,032

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

9.03%

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%

$180,640 $180.6K

Cap Rate 7%

$129,029 $129.0K

Cap Rate 9%

$100,356 $100.4K

Market Conditions

NOI Build-Up for 2,400 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

$14.4K $6.00/SF

− Vacancy

−$1.5K −$0.62/SF

EGI

$12.9K $5.38/SF

− OpEx

−$3.9K −$1.61/SF

NOI

$9.0K $3.76/SF

Area

Sebastian County, AR

Vacancy

10.40%

Lease Rate

$6.00 /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%

$180,640

Cap Rate 7%

$129,029

Cap Rate 9%

$100,356

Alternative Uses

Best Use

Flex RnD

$185.3K

$162.2K – $216.2K (±1% cap)

NOI $12,973 @ 7.0% cap · market cap 12.97%

Second Best

Warehouse

$156.7K

$137.1K – $182.8K (±1% cap)

NOI $10,967 @ 7.0% cap · market cap 10.97%

Theoretical Best

Healthcare Medical

$510.6K

$446.8K – $595.7K (±1% cap)

NOI $35,744 @ 7.0% cap · market cap 35.74%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Location Intelligence

Trade Area within ½ mile

4

Businesses Nearby

Explore this area Business Placement

Demographics for 72941, AR

5,079

Population

2,043

Households

2.5

Avg Household Size

41

Median Age

16%

College-Educated

93%

High-School Grad

43.4 sq mi

ZIP Area

117

Density / Sq Mi

$77,292

Median Household Income

$37,540

Median Earnings

$889

Median Rent

$159,600

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Flex space - Insulated commercial workspace with overhead doors, elevated storage, and electrical capacity for equipment-oriented operations.

Where is this flex space located?

The property is located at 1907 Horne Street Lavaca, AR.

What is the asking price?

The asking price for this property is $100,000.

What are key features of this property?

This property features: Approximately 2,400 SF insulated red iron flex building; Approximately one‑half acre with a 40' x 60' building footprint; 17‑foot sidewalls and oversized garage doors