Seven-Unit Strip Retail
For Sale
$1,280,000
206 Melrose St, Jonesboro, AR 72401
C-3-zoned commercial center with updated building systems, tenant signage, and on-site parking.
Property Size7,200 SF
Lot Size0.65 Acres
Price / SF$177.78
Days on Market204
Property Features for 206 Melrose St
General Information
Standard status
Active
Size
7,200 SF
Total Parking Spaces
40
Lot size
0.65 Acres
Zoning
C-3
Additional Details
Traffic Count
20,000 vehicles/day
Taxes and HOA fees
Annual Taxes
$5,000
Amenities
security cameras
outdoor lighting
unit signage
Building Details
Tenancy
Multi
Listing Agency:
Compass Rose Realty
(870) 336-1008
Listed By:
Andrea Andrews
(870) 336-1008
Source:
Exprealty
Added: Feb 7
Changed: Aug 30
Last Checked: Aug 30 at 12:08AM
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 Compass Rose Realty
Investment Insights
Based on property information with market context.
This seven-unit strip retail center contains 7,200 square feet on approximately 0.65 acres and carries C-3 zoning. Several units have been remodeled, while the property includes electric HVAC units installed in 2013, a roof replaced in December 2020, security cameras, a security system, and exterior lighting. Each unit has a 5 x 10 sign, with Unit C offering two signs.
The center is positioned across from Arkansas State University in Jonesboro, Arkansas, with proximity to Northeast Arkansas Baptist Memorial Hospital, Jonesboro Municipal Airport, and local retail and dining establishments. Parking is available for 40 vehicles, and estimated daily traffic counts are 20,000.
The center is positioned across from Arkansas State University in Jonesboro, Arkansas, with proximity to Northeast Arkansas Baptist Memorial Hospital, Jonesboro Municipal Airport, and local retail and dining establishments. Parking is available for 40 vehicles, and estimated daily traffic counts are 20,000.
Key Highlights
- 7,200‑square‑foot strip retail center with seven units
- Approximately 0.65 acres with C‑3 zoning
- Across the street from Arkansas State University
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
$61,334
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
4.79%
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%
$1,226,680
$1.2M
Cap Rate 7%
$876,200
$876.2K
Cap Rate 9%
$681,489
$681.5K
Market Conditions
NOI Build-Up for 7,200 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
$93.3K $12.96/SF
− Vacancy
−$5.7K −$0.79/SF
EGI
$87.6K $12.17/SF
− OpEx
−$26.3K −$3.65/SF
NOI
$61.3K $8.52/SF
Area
Craighead County, AR
Vacancy
6.10%
Lease Rate
$12.96 /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%
$1,226,680
Cap Rate 7%
$876,200
Cap Rate 9%
$681,489
Alternative Uses
Best Use
Retail
$876.2K
$766.7K – $1.02M
NOI $61,334 @ 7.0% cap · market cap 4.79%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.26M
$1.10M – $1.47M
NOI $88,237 @ 7.0% cap · market cap 6.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20,000 VPD
Traffic count
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
335
Businesses Nearby
65k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 66%
Shops & Services 34%
Kum & Go
Shops & Services
22,080 visits/mo
0.2 miles
McDonald's
Dining
20,260 visits/mo
0.0 miles
SONIC Drive In
Dining
10,275 visits/mo
0.5 miles
Church's Chicken
Dining
4,350 visits/mo
0.1 miles
SUBWAY
Dining
2,784 visits/mo
0.3 miles
Demographics for 72401, AR
43,127
Population
19,328
Households
2.2
Avg Household Size
33
Median Age
23%
College-Educated
89%
High-School Grad
88.5 sq mi
ZIP Area
487
Density / Sq Mi
$43,412
Median Household Income
$32,970
Median Earnings
$897
Median Rent
$185,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - C-3-zoned commercial center with updated building systems, tenant signage, and on-site parking.
Where is this strip mall located?
The property is located at 206 Melrose St Jonesboro, AR.
What is the asking price?
The asking price for this property is $1,280,000.
What are key features of this property?
This property features: 7,200‑square‑foot strip retail center with seven units; Approximately 0.65 acres with C‑3 zoning; Across the street from Arkansas State University
