Turnkey Short-Term Rental
For Sale
$1,249,500
226 PROSPECT Avenue, Hot Springs, AR 71901
Historic hotel reimagined as a fully furnished short-term rental property with five suites and dedicated basement amenities.
Property Size7,524 SF
Days on Market232
Property Features for 226 PROSPECT Avenue
General Information
Standard status
Active
Size
7,524 SF
Property subtype
Commercial Building
Additional Details
Furnished
Yes
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$5,205
Amenities
full kitchens
private balconies
spa-sized bathroom
owner storage
laundry facilities
secure closet space
Building Details
Building Size
7,524 SF
Year Built
1920
Stories
3
Listing Agency:
McGraw Realtors
Listed By:
Susan Bariola
(501) 350-6562
Source:
Whitestonearkansas
Added: Jan 19
Changed: Sep 6
Last Checked: Sep 7 at 6:32AM
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 McGraw Realtors
Investment Insights
Based on property information with market context.
Maison 226 is a historic, fully operational short-term rental building now reimagined from the former Darch Hotel. The property features five furnished suites designed for upscale stays: the first and second floors each offer two private 1-bedroom, 1-bath suites with full kitchens and private balconies. The top-floor suite includes three bedrooms and two baths, including a spa-sized bathroom, a generous living space, and an expansive private balcony that can accommodate up to eight guests.
A full basement is included and provides dedicated owner storage, laundry facilities, and secure closet space to support day-to-day operations. Maison 226 is currently licensed and permitted for short-term rentals, making it available as a turnkey offering, with custom furnishings and original artwork included throughout. The property is located at 226 Prospect Avenue in Hot Springs, Arkansas.
A full basement is included and provides dedicated owner storage, laundry facilities, and secure closet space to support day-to-day operations. Maison 226 is currently licensed and permitted for short-term rentals, making it available as a turnkey offering, with custom furnishings and original artwork included throughout. The property is located at 226 Prospect Avenue in Hot Springs, Arkansas.
Key Highlights
- Fully operational, licensed short‑term rental property at 226 Prospect Avenue
- Historic Darch Hotel building now reimagined as Maison 226 with five guest suites
- First and second floors each feature two 1‑bedroom, 1‑bath suites with full kitchens and private balconies
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
$46,431
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
3.72%
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%
$928,620
$928.6K
Cap Rate 7%
$663,300
$663.3K
Cap Rate 9%
$515,900
$515.9K
Market Conditions
NOI Build-Up for 7,524 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
$90.3K $12.00/SF
− Vacancy
−$5.9K −$0.78/SF
EGI
$84.4K $11.22/SF
− OpEx
−$38.0K −$5.05/SF
NOI
$46.4K $6.17/SF
Area
Garland County, AR
Vacancy
6.50%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
45.00%
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%
$928,620
Cap Rate 7%
$663,300
Cap Rate 9%
$515,900
Alternative Uses
Best Use
Apartment 5plus
$663.3K
$580.4K – $773.9K
NOI $46,431 @ 7.0% cap · market cap 3.72%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.38M
$1.20M – $1.61M
NOI $96,319 @ 7.0% cap · market cap 7.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,463
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
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Short term rental property - Historic hotel reimagined as a fully furnished short-term rental property with five suites and dedicated basement amenities.
Where is this short term rental property located?
The property is located at 226 PROSPECT Avenue Hot Springs, AR.
What is the asking price?
The asking price for this property is $1,249,500.
What are key features of this property?
This property features: Fully operational, licensed short‑term rental property at 226 Prospect Avenue; Historic Darch Hotel building now reimagined as Maison 226 with five guest suites; First and second floors each feature two 1‑bedroom, 1‑bath suites with full kitchens and private balconies
