Listing Agency: LPT Realty Conway n***@icloud.com Show Phone

Listed By: Lisa Martin · License #SA00076588 Show Phone

Source: Exprealty

Added: Feb 14 Changed: Aug 31 Last Checked: Aug 31 at 8:02PM

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Investment Insights

Based on property information with market context.

Located at 603 Highway 25 N in Guy, Arkansas, this grocery and convenience market occupies approximately 2 acres. The operation features fresh fruits and vegetables, locally oriented produce, baked goods, pies, jams, jellies, deli sandwiches, breakfast items, specialty coffees, and teas.

A well supports watering for garden space behind the shop, creating an on-site option for growing produce. The property also includes a red storage building and a carport adjacent to the market. The combination of food retail, prepared items, outdoor growing space, and accessory improvements supports continued operation as a community-serving market along Highway 25.

Key Highlights

• Approximately 2 acres at 603 Highway 25 N, Guy, AR
• Fresh produce, fruits, vegetables, baked goods, and prepared deli items
• Specialty coffees and teas offered on site

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

$14,915

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

5.63%

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%

$298,300 $298.3K

Cap Rate 7%

$213,071 $213.1K

Cap Rate 9%

$165,722 $165.7K

Market Conditions

NOI Build-Up for 1,327 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

$21.2K $15.96/SF

− Vacancy

−$1.3K −$0.97/SF

EGI

$19.9K $14.99/SF

− OpEx

−$5.0K −$3.75/SF

NOI

$14.9K $11.24/SF

Area

Faulkner County, AR

Vacancy

6.10%

Lease Rate

$15.96 /SF/Yr

Expense Ratio

25.00%

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%

$298,300

Cap Rate 7%

$213,071

Cap Rate 9%

$165,722

Alternative Uses

Best Use

Specialty Retail

$213.1K

$186.4K – $248.6K (±1% cap)

NOI $14,915 @ 7.0% cap · market cap 5.63%

Second Best

Retail

$186.9K

$163.6K – $218.1K (±1% cap)

NOI $13,084 @ 7.0% cap · market cap 4.94%

Theoretical Best

Office A

$302.7K

$264.8K – $353.1K (±1% cap)

NOI $21,187 @ 7.0% cap · market cap 8.00%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Grocery and convenience stores

Suggested Use

Top Pick (Bike/Boat/Book/etc) Store Food Market

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

Location Intelligence

Trade Area within ½ mile

4

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 72061, AR

100

Population

79

Households

1.3

Avg Household Size

43

Median Age

16%

College-Educated

89%

High-School Grad

2.2 sq mi

ZIP Area

45

Density / Sq Mi

$78,657

Median Household Income

$24,423

Median Earnings

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - Market operation includes prepared foods, fresh produce, specialty beverages, storage, and covered vehicle parking.

Where is this grocery and convenience store located?

The property is located at 603 Highway 25 N Guy, AR.

What is the asking price?

The asking price for this property is $265,000.

What are key features of this property?

This property features: Approximately 2 acres at 603 Highway 25 N, Guy, AR; Fresh produce, fruits, vegetables, baked goods, and prepared deli items; Specialty coffees and teas offered on site