Industrial-Style Income
New
For Sale
$159,000
423 E 3rd Street, Little Rock, AR 72201
CONDOS - Little Rock, AR
Property Size688 SF
Price / SF$231.10
Days on Market2
Property Features for 423 E 3rd Street
General Information
Property type
Residential
Property subtype
Duplex
Bedrooms
1
Bathrooms
1
Full bathrooms
1
Rooms
Bedroom 1, Bathroom 1
Interior features
Walk-In Closet(s), Ceiling Fan(s), Kit Counter-Ceramic Tile
Appliances
Electric Range, Dishwasher
Subdivision
TUF NUT BLDG HPR
Lot features
Level, Not in Subdivision
Directions
River market Ave and 3rd Street
Standard status
Active
Size
688 SF
Taxes and HOA fees
Tax Description
303
Tax Annual Amount
1571
HOA Fee
$193 Monthly
Legal Description
303
Amenities
pet-friendly
secure building access
fitness center
Building Details
Year built
1930
Flooring type
Concrete
Roof type
Flat
Architectural style
Contemporary
Listing Agency:
The Property Group
(501) 663-0505
Listed By:
Margaret Bell
(501) 231-7736
Added: Aug 13
Last Checked: Aug 14 at 10:06PM
MLS# 26033099
Copyright © 2026 Cooperative Arkansas Realtors Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 688-square-foot residential income property occupies a converted factory building constructed in 1930. The studio-style layout features an open living area, a separate bedroom area, one full bathroom, and a kitchen equipped with an electric range and dishwasher. Exposed brick, polished concrete flooring, expansive windows, high ceilings, granite countertops, and stainless appliances define the interior. A walk-in closet and ceiling fan are also included.
The property is located in downtown Little Rock near the River Market District, Arkansas River Trail, restaurants, nightlife, galleries, and parks. Future 30 Crossing Park is identified as one block away. Building amenities include controlled access, an optional garage parking arrangement, and pet-friendly policies. The first floor includes 10 Fitness and Lucky Lou's.
The property is located in downtown Little Rock near the River Market District, Arkansas River Trail, restaurants, nightlife, galleries, and parks. Future 30 Crossing Park is identified as one block away. Building amenities include controlled access, an optional garage parking arrangement, and pet-friendly policies. The first floor includes 10 Fitness and Lucky Lou's.
Key Highlights
- 688 SF studio‑style loft in a converted 1930 factory building
- Exposed brick, polished concrete floors, expansive windows, and soaring ceilings
- Separate bedroom area with full kitchen and bathroom
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
$5,561
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
3.50%
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%
$111,220
$111.2K
Cap Rate 7%
$79,443
$79.4K
Cap Rate 9%
$61,789
$61.8K
Market Conditions
NOI Build-Up for 688 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
$10.7K $15.60/SF
− Vacancy
−$623 −$0.90/SF
EGI
$10.1K $14.70/SF
− OpEx
−$4.5K −$6.61/SF
NOI
$5.6K $8.08/SF
Area
Little Rock, AR
Vacancy
5.80%
Lease Rate
$15.60 /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%
$111,220
Cap Rate 7%
$79,443
Cap Rate 9%
$61,789
Alternative Uses
Best Use
Apartment 5plus
$79.4K
$69.5K – $92.7K
NOI $5,561 @ 7.0% cap · market cap 3.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$125.0K
$109.4K – $145.8K
NOI $8,749 @ 7.0% cap · market cap 5.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
2,814
Businesses Nearby
Explore this area
Business Placement
Demographics for 72201, AR
961
Population
628
Households
1.5
Avg Household Size
44
Median Age
78%
College-Educated
100%
High-School Grad
1.2 sq mi
ZIP Area
801
Density / Sq Mi
$112,045
Median Household Income
$71,188
Median Earnings
$1,344
Median Rent
$262,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Studio-style loft with exposed brick, concrete flooring, updated appliances, and controlled building entry.
Where is this residential income property located?
The property is located at 423 E 3rd Street Little Rock, AR.
What is the asking price?
The asking price for this property is $159,000.
What are key features of this property?
This property features: 688 SF studio‑style loft in a converted 1930 factory building; Exposed brick, polished concrete floors, expansive windows, and soaring ceilings; Separate bedroom area with full kitchen and bathroom
