Established Auto Shop Near
For Sale
Contact for pricing
5501 S University Ave, Little Rock, AR 72209
Retail tire and service business in Little Rock for sale.
Property Size11,880 SF
Price / SF$185.19
Days on Market101
Property Features for 5501 S University Ave
General Information
Standard status
Active
Size
11,880 SF
Property subtype
Retail, Business for Sale
Investment Type
Owner/User
Building Details
Tenancy
Single
Listing Agency:
Bang Realty
(888) 737-2264
Listed By:
Brian Brockman · License #075994
Source:
Crexi
Added: May 18
Changed: Aug 25
Last Checked: Aug 25 at 3:56PM
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 Bang Realty
Investment Insights
Based on property information with market context.
The Tire Shoppe is a retail tire and service business located in Little Rock, Central Arkansas, near Interstate I-30. The facility includes 9 bays. The business generates $2,000,000 in annual sales. There is an opportunity to add commercial business to expand revenue. The property size is 11,880 square feet.
Key Highlights
- Established business with consistent retail tire and service.
- Located in Little Rock, Central Arkansas, near Interstate I‑30.
- Features a 9‑bay facility.
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
$133,202
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
6.05%
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%
$2,664,040
$2.7M
Cap Rate 7%
$1,902,886
$1.9M
Cap Rate 9%
$1,480,022
$1.5M
Market Conditions
NOI Build-Up for 11,880 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
$202.4K $17.04/SF
− Vacancy
−$12.1K −$1.02/SF
EGI
$190.3K $16.02/SF
− OpEx
−$57.1K −$4.81/SF
NOI
$133.2K $11.21/SF
Area
Little Rock, AR
Vacancy
6.00%
Lease Rate
$17.04 /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%
$2,664,040
Cap Rate 7%
$1,902,886
Cap Rate 9%
$1,480,022
Alternative Uses
Best Use
Retail
$1.90M
$1.67M – $2.22M
NOI $133,202 @ 7.0% cap · market cap 6.05%
Second Best
Industrial
$637.9K
$558.1K – $744.2K
NOI $44,651 @ 7.0% cap · market cap 2.03%
Theoretical Best
Office A
$2.16M
$1.89M – $2.52M
NOI $151,069 @ 7.0% cap · market cap 6.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
263
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 72209, AR
31,641
Population
13,863
Households
2.3
Avg Household Size
32
Median Age
12%
College-Educated
80%
High-School Grad
18.3 sq mi
ZIP Area
1,729
Density / Sq Mi
$40,267
Median Household Income
$32,681
Median Earnings
$982
Median Rent
$99,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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- Logan's Alignment And Brake — 4920 W 65th St, Little Rock, AR 72209
Frequently Asked Questions
What type of property is this?
Auto shop - Retail tire and service business in Little Rock for sale.
Where is this auto shop located?
The property is located at 5501 S University Ave Little Rock, AR.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Established business with consistent retail tire and service.; Located in Little Rock, Central Arkansas, near Interstate I‑30.; Features a 9‑bay facility.
