Mixed-Use Building with Leased
For Sale
$1,149,000
21 N 2nd Street, Fort Smith, AR 72901
Two-level commercial property combining leased office space with a restaurant and bar in the Entertainment District.
Property Size10,800 SF
Price / SF$106.39
Days on Market43
Property Features for 21 N 2nd Street
General Information
Standard status
Active
Size
10,800 SF
Property subtype
CommercialSale
Listing Agency:
O'Neal Real Estate- Fort Smith
(479) 461-4190
Listed By:
Team Shoppach
(479) 461-4190
Source:
Assurancerealtyfsm
Added: Jul 18
Changed: Aug 29
Last Checked: Aug 29 at 11:40AM
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 O'Neal Real Estate- Fort Smith
Investment Insights
Based on property information with market context.
This 10,800-square-foot Class A mixed-use building contains two distinct income-producing components. The upper level provides 4,700 square feet of leased office space occupied by professional tenants, while the lower level includes 6,100 square feet configured for a restaurant and bar. Major building systems have been updated, including electrical, plumbing, skylights, roofing, HVAC, and fire suppression equipment.
The property is positioned in Fort Smith’s Entertainment District at 21 N 2nd Street, near the Amphitheater, Public Event Buildings, and National and Local museums. A free public parking lot across the street supports access for visitors, restaurant patrons, and office occupants. Both spaces are leased to long-term tenants, and the building carries more than 150 years of local roots.
The property is positioned in Fort Smith’s Entertainment District at 21 N 2nd Street, near the Amphitheater, Public Event Buildings, and National and Local museums. A free public parking lot across the street supports access for visitors, restaurant patrons, and office occupants. Both spaces are leased to long-term tenants, and the building carries more than 150 years of local roots.
Key Highlights
- 10,800‑square‑foot mixed‑use building with 4,700 SF of leased office space and 6,100 SF restaurant/bar area
- Upper level occupied by professional office tenants; lower level leased to a restaurant and bar
- Updated electrical, plumbing, skylights, roof, HVAC, and fire suppression systems
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
$91,271
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
7.94%
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%
$1,825,420
$1.8M
Cap Rate 7%
$1,303,871
$1.3M
Cap Rate 9%
$1,014,122
$1.0M
Market Conditions
NOI Build-Up for 10,800 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
$155.5K $14.40/SF
− Vacancy
−$9.5K −$0.88/SF
EGI
$146.0K $13.52/SF
− OpEx
−$54.8K −$5.07/SF
NOI
$91.3K $8.45/SF
Area
Sebastian County, AR
Vacancy
6.10%
Lease Rate
$14.40 /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%
$1,825,420
Cap Rate 7%
$1,303,871
Cap Rate 9%
$1,014,122
Alternative Uses
Best Use
Specialty Retail
$1.62M
$1.42M – $1.89M
NOI $113,481 @ 7.0% cap · market cap 9.88%
Second Best
Office B
$1.54M
$1.35M – $1.80M
NOI $107,892 @ 7.0% cap · market cap 9.39%
Theoretical Best
Healthcare Medical
$2.30M
$2.01M – $2.68M
NOI $160,847 @ 7.0% cap · market cap 14.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
828
Businesses Nearby
Explore this area
Business Placement
Demographics for 72901, AR
20,973
Population
10,337
Households
2
Avg Household Size
37
Median Age
21%
College-Educated
81%
High-School Grad
8.7 sq mi
ZIP Area
2,411
Density / Sq Mi
$42,568
Median Household Income
$30,582
Median Earnings
$837
Median Rent
$113,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-level commercial property combining leased office space with a restaurant and bar in the Entertainment District.
Where is this mixed-use property located?
The property is located at 21 N 2nd Street Fort Smith, AR.
What is the asking price?
The asking price for this property is $1,149,000.
What are key features of this property?
This property features: 10,800‑square‑foot mixed‑use building with 4,700 SF of leased office space and 6,100 SF restaurant/bar area; Upper level occupied by professional office tenants; lower level leased to a restaurant and bar; Updated electrical, plumbing, skylights, roof, HVAC, and fire suppression systems
