Triplex Conversion with Approved
For Sale
$299,000
7406 Ellis ST, Fort Smith, AR 72916
MULTI_FAMILY - Fort Smith, AR
Property Size2,841 SF
Lot Size0.19 Acres
Price / SF$105.24
Days on Market94
Property Features for 7406 Ellis ST
General Information
Property type
Residential Multi Family
Property subtype
Other
Subdivision
Fort Chaffee Barracks Ph I, Ii, & Iii
Lot features
Curbing, Level
Directions
From Chad Colley Blvd in Chaffee Crossing, Take Roberts Blvd across the interstate into Historic Chaffee. Ellis will be the second street on the left. The property is next to the large parking lot.
Standard status
Active
APN
1
Size
2,841 SF
Lot size
0.19 Acres
Taxes and HOA fees
Tax Description
1
Tax Annual Amount
1
Legal Description
1
Building Details
Year built
1940
Floors in Building
1
Number of units
3
Flooring type
Vinyl
Roof type
Shingle
Architectural style
Other
Listing Agency:
O'Neal Real Estate- Fort Smith
(479) 242-4609
Listed By:
Team Shoppach
(918) 774-5743
Added: May 10
Changed: Jul 30
Last Checked: Aug 11 at 6:06PM
MLS# 1088979
Copyright © 2026 Western River Valley Board of REALTORS®. 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.
7406 Ellis ST is a triplex conversion project in Fort Smith. The former military barracks/office building is approved for conversion into three townhome-style residences and is being sold AS-IS for an investor or developer to purchase and complete. Plans, permitting, and architectural approvals have been granted by the City of Fort Smith and will convey with the sale.
The approved concept includes elevated individual front porches with stair access, white exterior siding, and black shingle roofing, along with dedicated parking, composite decking, and open living areas. The layouts feature kitchens with islands, updated baths, LVT flooring, and three separate residential units.
The property sits on a 0.19-acre lot and includes 2,841 square feet. The building was constructed in 1940 and has vinyl flooring and shingle roofing noted as part of the current improvements.
The approved concept includes elevated individual front porches with stair access, white exterior siding, and black shingle roofing, along with dedicated parking, composite decking, and open living areas. The layouts feature kitchens with islands, updated baths, LVT flooring, and three separate residential units.
The property sits on a 0.19-acre lot and includes 2,841 square feet. The building was constructed in 1940 and has vinyl flooring and shingle roofing noted as part of the current improvements.
Key Highlights
- Approved conversion to three townhome‑style residential units, sold AS‑IS
- City of Fort Smith‑approved plans, permitting, and architectural approvals convey with the sale
- Elevated front porches with stair access and dedicated parking included in approved design
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
$18,840
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
6.30%
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%
$376,800
$376.8K
Cap Rate 7%
$269,143
$269.1K
Cap Rate 9%
$209,333
$209.3K
Market Conditions
NOI Build-Up for 2,841 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
$29.0K $10.20/SF
− Vacancy
−$2.1K −$0.73/SF
EGI
$26.9K $9.47/SF
− OpEx
−$8.1K −$2.84/SF
NOI
$18.8K $6.63/SF
Area
Sebastian County, AR
Vacancy
7.12%
Lease Rate
$10.20 /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%
$376,800
Cap Rate 7%
$269,143
Cap Rate 9%
$209,333
Alternative Uses
Best Use
Multifamily LT 5
$269.1K
$235.5K – $314.0K
NOI $18,840 @ 7.0% cap · market cap 6.30%
Second Best
Apartment 5plus
$240.3K
$210.3K – $280.4K
NOI $16,824 @ 7.0% cap · market cap 5.63%
Theoretical Best
Healthcare Medical
$604.5K
$528.9K – $705.2K
NOI $42,312 @ 7.0% cap · market cap 14.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
94
Businesses Nearby
Explore this area
Business Placement
Demographics for 72916, AR
10,250
Population
4,720
Households
2.2
Avg Household Size
41
Median Age
45%
College-Educated
92%
High-School Grad
37.7 sq mi
ZIP Area
272
Density / Sq Mi
$88,125
Median Household Income
$51,444
Median Earnings
$1,212
Median Rent
$257,100
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Former barracks/office building converted to three townhome-style residences, with City-approved plans conveying and vinyl flooring in place.
Where is this triplex located?
The property is located at 7406 Ellis ST Fort Smith, AR.
What is the asking price?
The asking price for this property is $299,000.
What are key features of this property?
This property features: Approved conversion to three townhome‑style residential units, sold AS‑IS; City of Fort Smith‑approved plans, permitting, and architectural approvals convey with the sale; Elevated front porches with stair access and dedicated parking included in approved design
