Income-Producing Mixed-Use
For Sale
$1,200,000
825 Central Avenue, Hot Springs, AR 71901
An established first-floor tenant provides immediate income, while two upper floors offer additional build-out potential.
Property Size6,660 SF
Price / SF$180.18
Days on Market203
Property Features for 825 Central Avenue
General Information
Standard status
Active
Size
6,660 SF
Taxes and HOA fees
Annual Taxes
$2,577
Listing Agency:
Urban Living and Development INC
(501) 352-7670
Listed By:
Amber Henson · License #PB00075323
(501) 352-7670
Source:
Exprealty
Added: Feb 9
Changed: Aug 30
Last Checked: Aug 30 at 8:57PM
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 Urban Living and Development INC
Investment Insights
Based on property information with market context.
This 6,660-square-foot mixed-use property includes an established tenant on the first floor, providing an existing income component. The second and third floors can be finished for condominium use or adapted into a boutique hotel, creating additional income possibilities within the existing building.
The property is located at 825 Central Avenue in Hot Springs, near the new hotel planned for the Historic Goddard site. It is within an Opportunity Zone and may qualify for State, Federal, and Historic Tax Credits, subject to applicable requirements.
The property is located at 825 Central Avenue in Hot Springs, near the new hotel planned for the Historic Goddard site. It is within an Opportunity Zone and may qualify for State, Federal, and Historic Tax Credits, subject to applicable requirements.
Key Highlights
- 6,660‑square‑foot mixed‑use property at 825 Central Avenue
- Established first‑floor tenant provides immediate income
- Two upper floors can be finished as condos or a boutique hotel
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
$52,587
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
4.38%
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%
$1,051,740
$1.1M
Cap Rate 7%
$751,243
$751.2K
Cap Rate 9%
$584,300
$584.3K
Market Conditions
NOI Build-Up for 6,660 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
$79.9K $12.00/SF
− Vacancy
−$4.8K −$0.72/SF
EGI
$75.1K $11.28/SF
− OpEx
−$22.5K −$3.38/SF
NOI
$52.6K $7.90/SF
Area
Garland County, AR
Vacancy
6.00%
Lease Rate
$12.00 /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%
$1,051,740
Cap Rate 7%
$751,243
Cap Rate 9%
$584,300
Alternative Uses
Best Use
Retail
$751.2K
$657.3K – $876.5K
NOI $52,587 @ 7.0% cap · market cap 4.38%
Second Best
Mixed Use
$459.5K
$402.1K – $536.1K
NOI $32,168 @ 7.0% cap · market cap 2.68%
Theoretical Best
Office A
$1.22M
$1.07M – $1.42M
NOI $85,259 @ 7.0% cap · market cap 7.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,639
Businesses Nearby
45k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 44%
Dining 22%
Hotels & Casinos 17%
Groceries 10%
Burger King
Dining
9,887 visits/mo
0.4 miles
Embassy Suites By Hilton Hot Springs Hotel & Spa
Hotels & Casinos
7,888 visits/mo
0.4 miles
Valero Energy
Shops & Services
5,905 visits/mo
0.4 miles
Family Dollar
Shops & Services
5,119 visits/mo
0.4 miles
Exxon
Shops & Services
5,087 visits/mo
0.4 miles
Demographics for 71901, AR
29,363
Population
14,952
Households
2
Avg Household Size
43
Median Age
26%
College-Educated
88%
High-School Grad
101.9 sq mi
ZIP Area
288
Density / Sq Mi
$52,410
Median Household Income
$35,604
Median Earnings
$797
Median Rent
$173,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - An established first-floor tenant provides immediate income, while two upper floors offer additional build-out potential.
Where is this mixed-use property located?
The property is located at 825 Central Avenue Hot Springs, AR.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 6,660‑square‑foot mixed‑use property at 825 Central Avenue; Established first‑floor tenant provides immediate income; Two upper floors can be finished as condos or a boutique hotel
