T5.2 Core Mixed-Use
For Sale
Contact for pricing
205 Southwest 3rd Street, Bentonville, AR 72712
Corner parcel in downtown Bentonville with zoning that supports vertical mixed-use development.
Property Size41,817 SF
Price / SF$118.37
Days on Market50
Property Features for 205 Southwest 3rd Street
General Information
Standard status
Active
Size
41,817 SF
Property subtype
Mixed Use, Land
Zoning
T5.2 Downtown Core
Occupancy
100%
Listing Agency:
Haag Brown Commercial Real Estate and Development
Listed By:
Joshua Brown · License #EB00063743
(870) 336-8000
Source:
Crexi
Added: Jul 16
Changed: Aug 30
Last Checked: Aug 30 at 6:15AM
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 Haag Brown Commercial Real Estate and Development
Investment Insights
Based on property information with market context.
This corner development site at 205 Southwest 3rd Street occupies the intersection of SW 3rd Street and SW B Street in downtown Bentonville. The property is within the T5.2 Downtown Core zoning district, which supports vertical mixed-use development and an urban, walkable pattern of development.
Bentonville Square is three blocks away, while the Quilt of Parks is one block from the site. The location also offers direct connections to SW A Street, SW 8th Street, and Walton Boulevard. Crystal Bridges Museum of American Art, The Ledger, The Compton Hotel, Motto by Hilton, the Downtown Greenway, restaurants, parks, and entertainment venues are identified as nearby destinations accessible on foot or by bicycle.
The surrounding area includes the 350 AC Walmart Home Office campus, which is planned to accommodate approximately 14,000-19,000 employees, along with more than 1,400 Walmart supplier offices throughout Northwest Arkansas and five Fortune 500 company headquarters. The site is positioned for mixed-use, hospitality, office, or residential development within the downtown core.
Bentonville Square is three blocks away, while the Quilt of Parks is one block from the site. The location also offers direct connections to SW A Street, SW 8th Street, and Walton Boulevard. Crystal Bridges Museum of American Art, The Ledger, The Compton Hotel, Motto by Hilton, the Downtown Greenway, restaurants, parks, and entertainment venues are identified as nearby destinations accessible on foot or by bicycle.
The surrounding area includes the 350 AC Walmart Home Office campus, which is planned to accommodate approximately 14,000-19,000 employees, along with more than 1,400 Walmart supplier offices throughout Northwest Arkansas and five Fortune 500 company headquarters. The site is positioned for mixed-use, hospitality, office, or residential development within the downtown core.
Key Highlights
- T5.2 Downtown Core zoning supports vertical mixed‑use development
- Corner location at 205 Southwest 3rd Street and SW B Street
- Three blocks from Bentonville Square
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
$291,046
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
5.88%
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%
$5,820,920
$5.8M
Cap Rate 7%
$4,157,800
$4.2M
Cap Rate 9%
$3,233,844
$3.2M
Market Conditions
NOI Build-Up for 41,817 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
$501.8K $12.00/SF
− Vacancy
−$36.1K −$0.86/SF
EGI
$465.7K $11.14/SF
− OpEx
−$174.6K −$4.18/SF
NOI
$291.0K $6.96/SF
Area
Benton County, AR
Vacancy
7.20%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
37.50%
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%
$5,820,920
Cap Rate 7%
$4,157,800
Cap Rate 9%
$3,233,844
Alternative Uses
Best Use
Mixed Use
$4.16M
$3.64M – $4.85M
NOI $291,046 @ 7.0% cap · market cap 5.88%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.49M
$10.06M – $13.41M
NOI $804,412 @ 7.0% cap · market cap 16.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,373
Businesses Nearby
Explore this area
Business Placement
Demographics for 72712, AR
38,053
Population
16,245
Households
2.3
Avg Household Size
34
Median Age
49%
College-Educated
94%
High-School Grad
51.8 sq mi
ZIP Area
735
Density / Sq Mi
$102,073
Median Household Income
$56,675
Median Earnings
$1,197
Median Rent
$401,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Corner parcel in downtown Bentonville with zoning that supports vertical mixed-use development.
Where is this mixed-use property located?
The property is located at 205 Southwest 3rd Street Bentonville, AR.
What is the asking price?
The asking price for this property is $4,950,000.
What are key features of this property?
This property features: T5.2 Downtown Core zoning supports vertical mixed‑use development; Corner location at 205 Southwest 3rd Street and SW B Street; Three blocks from Bentonville Square
