For Investment · 110 SE 11th Street · Bentonville 72712
Buy. Operate. Entitle. Build. Exit.
A single-family home one block from the Razorback Greenway in downtown Bentonville. Operate it as a furnished short-term rental during entitlement, rezone to DN4, then construct four luxury townhomes for sale at Certificate of Occupancy. A 22-month cycle on a single block-scale site.
Investor Capital · 1 Slot
$140,000
Silent equity · 77.8% house interest · 20% build profit carry · $500/mo preferred from Day 1
The Numbers That Matter
Deal at a glance
Your Investment
$140K
Silent equity · 506(b) placement
Total ROI on Capital
150%
Base exit · 20% build carry · 22 months
Total Project Timeline
22 mo
Start to exit · vs 3–5 yr typical
Preferred Cash Payment
$500/mo
From STR proceeds · starts Day 1
Net Build Profit
$998,400
4 townhomes · base $450/SF exit
Investor 20% Carry
$199,680
Share of net build profit at CO
House Equity · 77.8%
$145,875
Sell-as-is share of net proceeds
Total Return to Investor
$350,555
All distributions · base case
Site Plan & Massing
The build, visualized
Front-house operates as STR through entitlement. Four 1,600 SF townhomes — each over a single-car ground-floor garage — built to the rear under DN4 zoning.
Project Timeline
22 months, four phases
Months 1–6
Entitlement & Rezoning
6 mo
R-1 → DN4. Pre-app, planning commission, council approval.
Months 7–10
Design & Permits
4 mo
Construction docs, civil, building permits for all four units.
Months 11–22
Vertical Construction
12 mo
Ground-break through Certificate of Occupancy on all 4 townhomes.
Month 22 · Exit
Sell & Distribute
CO
Sell townhomes, decide on original house, full distributions at close.
Comparable ground-up downtown Bentonville townhome deals run 3–5 years. The acquired house is income-producing through the entire entitlement window.
Construction & Sale Proforma
From land to four finished townhomes
Base case at $220/SF hard construction cost and $450/SF exit pricing — both consistent with the assumptions used on the 110 SE 12th Street project one block south, and with current downtown Bentonville comps clearing $400–$452/SF.
Money In · Total Development Cost
$1,678,800
Construction-loan funded · land already secured by partnership
After commissions and closing · 1,600 SF per townhome · base $450/SF
Per-Unit Sale Price$720,000
Gross Sales · 4 Units$2,880,000
Less Commissions · 6%−$172,800
Less Closing Costs−$30,000
Margin per SF$156/SF
Net Build Profit · Base Case
$2,677,200 net sales − $1,678,800 total development cost =$998,400 net build profit on four townhomes. The investor's 20% carry is $199,680.
Stress test · what if exit pricing softens
Three exit scenarios, side by side. Even at $400/SF, the investor's 20% carry alone returns the full $140K capital.
Stress · Downside
$400 / SF
Gross Sales$2,560,000
Net Build Profit$700,000
Investor 20% Carry$140,000
Base · Current Comps
$450 / SF
Gross Sales$2,880,000
Net Build Profit$998,400
Investor 20% Carry$199,680
Upside · Top-Tier Finish
$500 / SF
Gross Sales$3,200,000
Net Build Profit$1,296,800
Investor 20% Carry$259,360
Phase 1 · Months 1–10
Your return before a shovel hits the ground
During the 10-month entitlement and design phase, the existing 3-bedroom house operates as a furnished Airbnb. The $500 preferred payment comes out first, before partners take anything.
Gross STR Revenue
$220 ADR × 62% occupancy × 30 nights
+$4,092
Property Manager Fee
25% of gross · full-service handling
−$1,023
Net After Manager
$3,069
Investor Preferred Payment · Priority
$500
Proven market.
1001 SE 12th Street — half a block away — is an active, highly-rated Airbnb with consistent bookings and strong repeat-guest reviews. Market validated at the street level, not just the city level.
10-Month Preferred Total
$5,000
Paid monthly through entitlement
Implied Annual Yield
4.3%
On $140K · before build profit carry
Underlying Asset Value
~$418,000
Land + house · purchase basis
Investor House Interest
77.8%
Pro-rata share of equity
Phase 2 · Month 22 · The Waterfall
How you get paid
All distributions to the investor at exit. Scenario B (20% build carry) — your capital funded the house; the construction loan funded the builds.
STR Preferred Payments
10 months × $500 · paid monthly through entitlement
+$5,000
20% Build Profit Carry
20% of $998,400 net build profit on 4 units
+$199,680
House Equity · Sell As-Is
77.8% of $187,500 net proceeds
+$145,875
Total Return to Investor
$350,555
Less Return of Capital
$140,000 deployed at acquisition
−$140,000
Net Profit · Total ROI 150%
$210,555
Capital Protection · Day 1
The land and house are worth ~$418,000 at purchase — you are not funding a speculative build into nothing. Worst case is owning real property in downtown Bentonville one block from Walmart HQ.
Why the 11th Street upside is materially higher than the comparable 12th Street site: same acquisition basis, but DN4 zoning supports four units instead of two — doubling the saleable square footage with only a modest increase in capital requirement. The investor's $140K contribution and timeline stay the same.
Original House · Your Choice at CO
Two strong exits on the original property
Recommended · Hold
Option A — Keep as STR
Monthly Gross STR$4,092
Net After All Expenses$312/mo
Annual Net Cash Flow$3,744/yr
Your Share · 77.8%~$2,913/yr
Ongoing Passive IncomeIndefinite
Liquidity
Option B — Sell or Reno + Flip
Sale Price As-Is · Base$450,000
Net Proceeds As-Is$187,500
Your Share · 77.8%$145,875
With $50K Renovation$150,387
Decision TimingMade at CO
The house exit decision is made at CO — when you can see the market clearly. No commitment required today.
Market Context
Why Bentonville, why this block
Walmart Global HQ
The world's largest company relocated its global home office two blocks away. Thousands of vendors, executives, and corporate travelers need furnished housing every week.
Crystal Bridges Museum
A world-class American art institution one mile away that draws 600,000+ visitors annually and anchors the area as a cultural destination year-round.
Live Nation Amphitheater
Major outdoor venue opened 2025, adding a fresh demand driver for peak STR nights and weekend bookings.
Walton STEM University
A $1B+ planned research university breaking ground in 2029, anchored by the Walton Family Foundation. Bentonville's growth trajectory is intentional and well-funded.
Razorback Greenway
38 miles of world-class mountain bike trails one block away. Bentonville is the self-described "Mountain Biking Capital of the World" — driving consistent outdoor tourism.
Downtown $/SF Comps
Recent sales on SE/SW streets in 72712 are clearing $400–$452/SF for renovated product. The $450/SF base exit assumption is in line with current market.
Deal Structure
How the partnership works
Your Role
Silent equity partner. You contribute $140,000 toward the house purchase and own 77.8% of house economics. You receive $500/month from STR proceeds during entitlement, starting Month 1.
Build Funding
The four rear townhomes are financed by a construction loan secured against the land. Your capital does not fund the construction — which is why your carry on the build profit is 20% rather than 77.8%. You are rewarded for enabling the deal, not for the construction risk.
DN4 Zoning
DN4 is Bentonville's highest-density downtown neighborhood designation. It supports attached townhome development at the density required for this 4-unit plan. Bentonville's Future Land Use Map already supports DN-tier zoning on this block.
At Exit
Townhome sale proceeds pay off the construction loan first. Remaining profit is split: 20% to you, 80% to managing partners who carried the entitlement work, construction oversight, and execution risk. Your house equity (77.8%) is distributed separately and concurrently.
Structure
506(b) private placement. Legal documents prepared by qualified securities counsel prior to capital raise. All fees paid to managing partners are fully disclosed.
What Could Go Wrong
Four risks worth pricing in
Risk 1
Rezoning to DN4
Subdivision and four-unit townhome construction requires rezoning from R-1 to DN4. Bentonville's Future Land Use Map supports the Downtown Neighborhood designation on this block, but city council approval is not guaranteed.
How we handle it: If rezoning fails, partners may sell the house as-is at base value or hold and operate · STR economics support the property regardless.
Risk 2
Construction cost overrun
Hard costs modeled at $220/SF with a 10% contingency buffer. Material price inflation or contractor pricing pressure could compress build margins in the next 18 months.
How we handle it: 10% contingency already baked into the proforma · we hold the right to value-engineer finishes if needed · GC pricing locked before vertical work begins.
Risk 3
Exit pricing softens
The $450/SF base assumption is supported by current downtown comps. Bentonville's broader market is soft (median $/SF down 17% YOY), though the downtown luxury tier has held.
How we handle it: The stress proforma at $400/SF still returns the full $140K capital from the build carry alone — see the stress test above.
Risk 4
STR underperformance
STR income during entitlement is a bridge, not a guarantee. Conservative inputs ($220 ADR / 62% occupancy) sit below the top-25% Bentonville threshold — but bookings can swing.
How we handle it: The $500/mo preferred payment has priority over partner distributions · 1001 SE 12th half a block away validates the street-level demand.
Why This Site at This Capital
One block. One house. Four townhomes. 22 months.
Most downtown Bentonville investments either lock you into a 3–5 year ground-up build with no income, or hand you a single-family STR with no upside catalyst. 110 SE 11th does both at once: the existing house funds your preferred payments through entitlement, and DN4 rezoning unlocks four times the saleable square footage on the same dirt at the back.
$140K
Your capital — silent equity · 77.8% house interest · 506(b) private placement
$500/mo
Preferred payment — paid from STR proceeds with priority over partners · starts Day 1
$199K
20% build carry — share of $998K net profit on four 1,600 SF townhomes at $450/SF base exit
$146K
House equity at CO — 77.8% of net proceeds · take as cash or hold the asset
150%
Total ROI · 22 months — base case · stress case still returns full capital
Capital protection from Day 1: the underlying land and house are worth ~$418K at purchase basis. Worst case is owning a real, income-producing asset one block from Walmart Global HQ. Best case is a $350K total return on $140K deployed inside two years.
Investor calls and site walks scheduled by appointment. Full Private Placement Memorandum, comparable sales, and DN4 entitlement memo available under NDA. First-position commitments given priority.
