TL;DR: The Northwest Arkansas self-storage market saw a $23.75 million transaction for 1,890 units and 323,780 square feet in March 2025 (Talk Business & Politics).
Bentonville Self-Storage Transaction Details
Three A.J. Storage facilities in Bentonville sold for $23.75 million in a transaction reported March 29, 2025 (Talk Business & Politics, March 29, 2025). The portfolio, located at 3800 N.W. Frontage Road, 269 units, and 39,450 sq ft, combined with a Rogers location at 2600 N. 24th St., 845 units, and 158,630 sq ft, and a Springdale facility at 4206 Elm Springs Road, 776 units, and 125,700 sq ft, to equal 1,890 units and 323,780 square feet. The deal valued the property at $12,566 per unit and $73 per square foot (Talk Business & Politics, March 29, 2025). Discover Bentonville, Arkansas, to see how this deal fits into the broader market.
Colorado-based Spartan Investment Group acquired the assets through multiple LLCs, while the seller was multiple Bentonville-based LLCs (Talk Business & Politics, March 29, 2025). Arvest Bank, a Fayetteville-chartered institution, provided a five-year, $13.56 million acquisition loan to facilitate the purchase (Talk Business & Politics, March 29, 2025). Spartan disclosed plans to invest over $1 million in property upgrades and to bring on Extra Space as third-party manager (Talk Business & Politics, March 29, 2025).
Zoning Rules and Supply Trends in Bentonville
Site selection for ground-up development in Bentonville requires attention to the C-2 General Commercial zoning district, where the City of Bentonville (updated 11-09-2021) lists mini-warehouse storage as a use allowed by right. This distinction allows for straightforward permitting compared to conditional uses, providing a clear regulatory baseline for investors. For those seeking existing assets rather than ground-up development, current commercial inventory is worth reviewing regularly since self-storage sales in this region do not stay listed long.
Historical data from an Inside Self-Storage industry report (December 6, 2018) indicates significant expansion in the region. The report noted supply grew 19% over the prior four years, adding more than 1 million square feet. At that time, roughly 260,000 sq ft were under construction and 630,000 sq ft were in planning, with over 70% of this activity concentrated in Benton County. The report also cited more than 25 facility acquisitions in Benton and Washington counties over the prior two years totaling more than $57 million in transaction value. Vacancy rates reported by managers across more than 20 locations ranged from below 1% to about 10%.
Northwest Arkansas Industrial and Demographic Fundamentals
The Northwest Arkansas industrial vacancy rate stood at 5.3% with an average asking rent of $9.72 per square foot in Q1 2026, a figure that increased 2.5% year over year, according to Cushman & Wakefield/Sage Partners as reported by Talk Business & Politics on May 7, 2026. Most new development in this sector was pre-leased at that time, indicating a tight supply environment for logistics and industrial-adjacent space. While self-storage operates as a distinct asset class, underwriting for these facilities typically relies on the broader logistics and industrial market fundamentals.
Demographic growth in the region supports this demand profile. Benton County’s population rose from 312,248 in 2023 to 321,566 in 2024, representing a gain of about 3%, which ranked the county as the 76th fastest-growing in the United States out of 3,144 counties, per U.S. Census Bureau estimates reported by Talk Business & Politics in March 2025. The Fayetteville-Springdale-Rogers metro area saw its population increase from 591,895 in 2023 to 605,615 in 2024, a gain of about 2.3%, making it the 22nd fastest-growing metro area in the country. If you are looking to capitalize on this momentum, list your home with us.
Bentonville Population And Financing Trends
Demographic expansion in Bentonville directly supports the case for self-storage investment. The city had an estimated population of 63,057 as of July 1, 2025, and was Arkansas's second-fastest-growing city between 2023 and 2024, growing 3.5% and adding 7,575 residents (U.S. Census Bureau QuickFacts; Talk Business & Politics). This growth trajectory is significant, as the city experienced 14% growth from 2020 to 2024. For a developer, this sustained population increase indicates a rising demand for storage solutions to accommodate new households and the accumulation of goods associated with a growing workforce.
Simultaneously, the financing environment presents a distinct set of variables for commercial projects. The average 30-year fixed mortgage rate was 6.67% as of August 13, 2026 (Freddie Mac Primary Mortgage Market Survey). However, commercial acquisition and construction financing for a self-storage project typically carries its own separate underwriting terms distinct from a residential mortgage. Investors must approach the capital stack with a clear understanding that the prevailing residential rate serves as a market benchmark, while the actual cost of debt for a self-storage facility will be determined by the specific terms negotiated within the commercial lending market.
Benton County Property Tax Rates
Property tax liability in Benton County is determined by the county assessor and levied by the local government. The effective tax rate for property owners is approximately 0.6% of the assessed value as of 2026, according to Tax-Rates.org. This figure represents the annual percentage of a property's assessed value that must be paid to the county. For an investor analyzing a self-storage facility, this rate serves as a fixed operating expense that must be deducted from potential revenue to determine net operating income. It is a recurring liability that impacts the long-term yield of the asset.
Assessed value is the dollar amount assigned to a property by the county for tax purposes, which may differ from the market value. The 0.6% rate applies to this assessed value, meaning the actual dollar amount paid annually will vary based on the specific valuation of the land and improvements. Understanding this specific rate allows for a precise calculation of the annual holding costs, which is essential for underwriting a successful investment in the region.
Working With Mason Capital Group in Bentonville
Our firm maintains an office at 609 SW 8th Street, 6th Floor, Bentonville, AR 72712. We have advised on $2.4B+ in cumulative transaction activity over 30+ years in Northwest Arkansas. We provide a clear view of the market for a self-storage facility investment in Northwest Arkansas.
Contact us directly at 479-925-3333 to discuss your specific objectives. We offer a disciplined approach to evaluating assets and structuring transactions. We are available to answer your questions and guide you through the process. Current inventory is on our featured listings page.
How much did three A.J. Storage facilities sell for in Northwest Arkansas?
Three A.J. Storage facilities in Bentonville (3800 N.W. Frontage Road, 269 units, 39,450 sq ft), Rogers (2600 N. 24th St., 845 units, 158,630 sq ft), and Springdale (4206 Elm Springs Road, 776 units, 125,700 sq ft) sold together for $23.75 million in a transaction reported March 29, 2025.
Who bought the A.J. Storage properties and how was the deal financed?
The buyer in the March 2025 sale was Colorado-based Spartan Investment Group, through multiple LLCs; the seller was multiple Bentonville-based LLCs; Arvest Bank (Fayetteville-chartered) provided a five-year, $13.56 million acquisition loan; Spartan disclosed plans to invest over $1 million in property upgrades and to bring on Extra Space as third-party manager (Talk Business & Politics, March 29, 2025).
What is the current industrial vacancy rate and asking rent in Northwest Arkansas?
Northwest Arkansas regionwide industrial vacancy was 5.3% with average asking rent of $9.72 per square foot in Q1 2026, up 2.5% year over year, with most new development pre-leased (Cushman & Wakefield/Sage Partners, reported by Talk Business & Politics, May 7, 2026).
How has the population of Benton County and the Bentonville metro area changed recently?
Benton County's population grew from 312,248 in 2023 to 321,566 in 2024, a gain of about 3%, the 76th fastest-growing county by percentage among 3,144 U.S. counties; the Fayetteville-Springdale-Rogers metro area grew from 591,895 in 2023 to 605,615 in 2024, a gain of about 2.3%, the 22nd fastest-growing metro area in the U.S. (U.S. Census Bureau estimates, reported by Talk Business & Politics, March 2025).
Is ground-up self-storage development permitted in Bentonville's C-2 district?
In Bentonville's C-2 General Commercial zoning district, mini-warehouse storage is listed as a use allowed by right, not merely conditional (City of Bentonville, C-2 General Commercial zoning document, updated 11-09-2021).