Building Details

Year Built 1887

Listing Agency: Keller Williams Platinum Realty l***@kw.com Show Phone

Listed By: Laura McLean · License #SA00081842 Show Phone

Source: Assurancerealtyfsm

Added: Jul 20 Changed: Aug 29 Last Checked: Aug 30 at 5:49PM

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Investment Insights

Based on property information with market context.

Built in 1887, this 9,600-square-foot bed-and-breakfast occupies 0.69 landscaped acres in Chester. The inn provides 11 themed guest rooms, including two luxury suites, along with a kitchenette in one suite and guest bathrooms equipped with 7 showers, 9 toilets, and two tubs. A commercial kitchen and dining hall support group functions, while the on-site Mercantile & Apothecary Shop includes a stage and substantial seating area.

Property improvements include a new roof, insulated walls, updated HVAC systems with mini-splits, modern electrical service, new hot water heaters, and flooring-integrated dehumidifiers. Exterior amenities include a large patio, gardens, a stream with covered bridge, natural fencing, ample parking, and RV hookups. The property is located at 411 E Front Avenue, less than half a mile from I-540.

Key Highlights

• 9,600‑square‑foot bed‑and‑breakfast built in 1887
• 11 uniquely themed guest rooms, including two luxury suites
• 0.69 landscaped acres with gardens, patio, stream, and covered bridge

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

$60,192

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

4.82%

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%

$1,203,840 $1.2M

Cap Rate 7%

$859,886 $859.9K

Cap Rate 9%

$668,800 $668.8K

Market Conditions

NOI Build-Up for 9,600 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

$144.0K $15.00/SF

− Vacancy

−$17.3K −$1.80/SF

EGI

$126.7K $13.20/SF

− OpEx

−$66.5K −$6.93/SF

NOI

$60.2K $6.27/SF

Area

Crawford County, AR

Vacancy

12.00%

Lease Rate

$15.00 /SF/Yr

Expense Ratio

52.50%

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%

$1,203,840

Cap Rate 7%

$859,886

Cap Rate 9%

$668,800

Alternative Uses

Best Use

Hotel Hospitality

$859.9K

$752.4K – $1.00M (±1% cap)

NOI $60,192 @ 7.0% cap · market cap 4.82%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.84M

$1.61M – $2.15M (±1% cap)

NOI $128,840 @ 7.0% cap · market cap 10.31%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Beard and Lady Apothecary ... (Bike/Boat/Book/etc) Store Beard and Lady Inn Hotel & Motel Homegrown Native Foods Restaurant

Suggested Use

Top Pick HVAC Service Food Market Farmer's Market Hotel & Motel Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

21

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 72934, AR

942

Population

379

Households

2.5

Avg Household Size

40

Median Age

18%

College-Educated

57%

High-School Grad

71.0 sq mi

ZIP Area

13

Density / Sq Mi

$71,009

Median Earnings

$636

Median Rent

Questions? Ask Rey

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What type of property is this? Where is this bed & breakfasts located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Bed & breakfast - Restored 1887 property includes themed guest rooms, event facilities, gardens, and on-site retail space.

Where is this bed & breakfast located?

The property is located at 411 E Front Avenue Chester, AR.

What is the asking price?

The asking price for this property is $1,250,000.

What are key features of this property?

This property features: 9,600‑square‑foot bed‑and‑breakfast built in 1887; 11 uniquely themed guest rooms, including two luxury suites; 0.69 landscaped acres with gardens, patio, stream, and covered bridge