Upper-Level Residential Income
For Sale
$315,000
640 Arkridge Road Unit C-2, Hot Springs, AR 71913
Move-in-ready condominium with lake views, private balcony, and flexible residential use subject to a three-month minimum lease.
Property Size1,766 SF
Days on Market56
Property Features for 640 Arkridge Road Unit C-2
General Information
Standard status
Active
Size
1,766 SF
Property subtype
Condo/Townhse/Duplex/Apt
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$1,766
Building Details
Building Size
1,766 SF
Year Built
2006
Listing Agency:
Crye-Leike REALTORS Hot Springs
Listed By:
Nedra Plumlee · License #EB00042722
(501) 276-4510
Source:
Whitestonearkansas
Added: Jul 27
Changed: Sep 18
Last Checked: Sep 19 at 10:45AM
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 Crye-Leike REALTORS Hot Springs
Investment Insights
Based on property information with market context.
This well-maintained, upper-level condominium was built in 2006 and offers two bedrooms and two full bathrooms. The open-concept kitchen connects with the living and dining areas, while the primary suite includes sliding glass doors opening to a private balcony with lake views. The guest bedroom is positioned near the second full bathroom, providing separation for residents or visitors.
Located at 640 Arkridge Road in Hot Springs, the property is directly across from Garvan Gardens and just steps from Lake Hamilton. Short-term rentals are not permitted, and leases must have a minimum term of three months.
Located at 640 Arkridge Road in Hot Springs, the property is directly across from Garvan Gardens and just steps from Lake Hamilton. Short-term rentals are not permitted, and leases must have a minimum term of three months.
Key Highlights
- Upper‑level condominium built in 2006
- Two bedrooms and two full bathrooms
- Private balcony with lake views
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
$10,898
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
3.46%
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%
$217,960
$218.0K
Cap Rate 7%
$155,686
$155.7K
Cap Rate 9%
$121,089
$121.1K
Market Conditions
NOI Build-Up for 1,766 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 $12.00/SF
− Vacancy
−$1.4K −$0.78/SF
EGI
$19.8K $11.22/SF
− OpEx
−$8.9K −$5.05/SF
NOI
$10.9K $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%
$217,960
Cap Rate 7%
$155,686
Cap Rate 9%
$121,089
Alternative Uses
Best Use
Apartment 5plus
$155.7K
$136.2K – $181.6K
NOI $10,898 @ 7.0% cap · market cap 3.46%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$323.0K
$282.6K – $376.8K
NOI $22,608 @ 7.0% cap · market cap 7.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
16
Businesses Nearby
Explore this area
Business Placement
Demographics for 71913, AR
46,801
Population
25,441
Households
1.8
Avg Household Size
44
Median Age
28%
College-Educated
91%
High-School Grad
134.2 sq mi
ZIP Area
349
Density / Sq Mi
$55,367
Median Household Income
$32,746
Median Earnings
$970
Median Rent
$179,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Move-in-ready condominium with lake views, private balcony, and flexible residential use subject to a three-month minimum lease.
Where is this residential income property located?
The property is located at 640 Arkridge Road Unit C-2 Hot Springs, AR.
What is the asking price?
The asking price for this property is $315,000.
What are key features of this property?
This property features: Upper‑level condominium built in 2006; Two bedrooms and two full bathrooms; Private balcony with lake views
