Northwest Arkansas Flex Portfolio
Industrial | 6.95% CAP | 149,816 SqFt
Marketing description
Cushman & Wakefield | Sage Partners is pleased to exclusively present for sale the Northwest Arkansas Flex Portfolio, a three-property industrial portfolio strategically located in Springdale, Arkansas. The portfolio consists of 38 tenant spaces across Athens Avenue, Worth Lane, and Dentech Drive and is currently 93% occupied, providing stable in-place cash flow with additional upside through mark-to-market rent growth and lease-up potential.
The offering represents a rare opportunity to acquire institutional scale within Northwest Arkansas' highly fragmented small-bay industrial sector. Opportunities to acquire three strategically located flex and industrial assets totaling nearly 150,000 square feet in a single transaction are exceptionally limited within the market. Collectively, the properties provide diversified cash flow, broad tenant exposure, and operational scale within one of the country's fastest-growing metropolitan regions.
The portfolio benefits from strong regional connectivity with access to Interstate 49, Highways 412 and 71B, and the Springdale Northern Bypass extension, positioning the assets to capitalize on continued industrial growth throughout the region. With a diversified tenant roster spanning industrial, service-oriented, distribution, and contractor-related users, the portfolio provides durable income supported by strong regional demand fundamentals. In-place rents remain below market across much of the portfolio, creating a compelling opportunity for future NOI growth through renewals, rollover, and continued operational optimization.
1086 Athens Avenue is a stabilized multi-tenant flex asset positioned within one of Springdale's most active industrial corridors. The property features highly functional small-bay suites with strong tenant retention characteristics and benefits from immediate access to Highway 71B, the Springdale Northern Bypass extension, Highway 412, and Interstate 49. The asset's diversified rent roll and stretegic location provide stable in-place income within a supply-constrained segment of the Northwest Arkansas industrial market..
2380 Worth Lane offers investors a value-add multi-building industrial asset with immediate upside through lease-up of remaining vacancy and continued conversion of below-market rents. Located on Highway 412 with strong regional connectivity, the property caters to a broad range of industrial and service-oriented tenants through flexible suite sizes and multiple drive-in configurations. The asset presents an opportunity to increase NOI while maintaining exposure to Northwest Arkansas' strong industrial fundamentals.
1816 Dentech Drive is a two-tenant industrial property located within a designated Opportunity Zone in East Springdale. The asset has benefited from long-term tenancy and stable occupancy, demonstrating the property's utility and the durability of demand for functional industrial product in the market. The property offers a functional industrial layout with outdoor storage capability and strong connectivity to major regional transportation corridors. In-place rents remain meaningfully below market, providing investors the opportunity to capture future rental growth within one of Northwest Arkansas' fastest-growing industrial submarkets.
Investment highlights
- Rare Opportunity to Acquire Scaled Small-Bay Industrial Portfolio - The Northwest Arkansas Flex Portfolio consists of three strategically located industrial properties totaling 149,816 square feet across 38 tenant suites. Opportunities to acquire this level of scale within Northwest Arkansas' highly fragmented flex and small-bay industrial sector are exceptionally limited.
- Stable In-Place Cash Flow with Additional Upside - The portfolio is currently 93% occupied and provides durable in-place income supported by a diversified tenant base. Additional upside exists through lease-up of remaining vacancy, mark-to-market rent growth, and continued operational optimization.
- Exposure to One of the Nation's Fastest-Growing Regions - The assets are located within Northwest Arkansas, one of the fastest-growing metropolitan regions in the United States, supported by continued population growth, corporate investment, and expanding industrial demand fundamentals.
- Functional Multi-Tenant Industrial Product - The portfolio features flexible suite configurations, multiple drive-in doors, and layouts designed to accommodate a broad range of industrial, contractor, distribution, and service-oriented users.
- Strategic Regional Connectivity - The properties benefit from strong connectivity to Interstate 49, Highways 412 and 71B, and the Springdale Northern Bypass extension, positioning the portfolio to capitalize on continued industrial and infrastructure growth throughout the region.
- Diversified Tenant Roster - The portfolio's 38 tenant suites provide broad tenant diversification across multiple industries and reduce reliance on any single occupant or business sector.
- Embedded Rental Growth Potential - In-place rents across much of the portfolio remain below market, creating a compelling opportunity for future NOI growth through renewals, rollover, and leasing activity within a supply-constrained industrial market.
- NOI: $347,234
- Address:1086 Athens Ave, Bethel Heights, AR
- Building SP:32,515 ± SF
- Site Area:2.54 ± Acres
- Occupancy:93%
- Walt:1.52 Year(s)
- Avg. In Place Rent:$10.57
- Mark-To-Market Upside:32.4%
- # Of Tenants:12
- Lease Structure:NNN
- NOI:$423,384
- Address: 2380 Worth Ln, Springdale, AR
- Building Sf:58,300 ± SF
- Site Area:3.643 ± Acres
- Occupancy:85%
- Walt:1.37 Years(s)
- Avg. In Place Rent:$9.52
- Mark-To-Market:16%
- # Of Tenants:19
- Lease Structure: Mix of NNN/Modified Gross
- NOI:$353,689.72
- Address:1816 Dentech Dr, Springdale, AR
- Total Building Size:59,000 ± SF
- Site Area:6.14 ± AC
- Occupancy:100%
- Walt:2.56 Year(s)
- Avg. In Place Rent:$6.36
- Mark-To-Market:42%
- # Of Tenants:2
- Lease Structure:Modified NNN (Tenant is responsible for all operating expenses including maintenance, repairs, and replacements. Tenant is responsible for the increase in Taxes and Insurance over a 2022 base year.)
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