10-Bed Assisted Living
For Sale
$1,200,000
1600 E Assisted Living Way, Cottonwood, AZ 86326
COMMERCIAL - Cottonwood, AZ
Property Size3,172 SF
Lot Size0.45 Acres
Price / SF$378.31
Days on Market421
Property Features for 1600 E Assisted Living Way
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Licensed Residential Assisted Living Home
Lot features
Corner Lot
Directions
100 Miles North of Phoenix By I-17. More details later
Standard status
Active
APN
000-00-000
Size
3,172 SF
Lot size
0.45 Acres
Utilities
Sewer type
Private Sewer
Heating system
Electric (Heating)
Cooling system
Central Air
Building Details
Building materials
Stucco
Listing Agency:
HomeSmart
(602) 230-7600
Listed By:
Jeffrey Masich · License #BR632450000
(480) 242-6500
Added: Jun 17, 2025
Changed: Aug 6
Last Checked: Aug 11 at 7:06PM
MLS# 6881502
Copyright © 2026 Arizona Regional Multiple Listing Service, Inc. 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.
This licensed residential assisted living facility accommodates 10 beds on a 0.45-acre treed lot. The 3,172-square-foot property includes a main residence with 7 bedrooms and 3 bathrooms, along with a separate 1-bedroom, 1-bath casita. A 2-car garage provides additional enclosed space. Stucco construction, central air, electric heating, and private sewer serve the property.
Located in Cottonwood, Arizona, the facility is positioned in the Verde Valley, approximately 20 minutes from Sedona. The assisted living operation has been established for 24 years, and the existing staff, including an assisted living manager, may remain subject to the stated conditions.
Located in Cottonwood, Arizona, the facility is positioned in the Verde Valley, approximately 20 minutes from Sedona. The assisted living operation has been established for 24 years, and the existing staff, including an assisted living manager, may remain subject to the stated conditions.
Key Highlights
- Licensed for 10 beds with 24 years of established operation
- 3,172 square feet on a 0.45‑acre treed lot
- Main residence includes 7 bedrooms and 3 bathrooms
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
$33,810
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
2.82%
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%
$676,200
$676.2K
Cap Rate 7%
$483,000
$483.0K
Cap Rate 9%
$375,667
$375.7K
Market Conditions
NOI Build-Up for 3,172 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
$64.7K $20.40/SF
− Vacancy
−$3.2K −$1.02/SF
EGI
$61.5K $19.38/SF
− OpEx
−$27.7K −$8.72/SF
NOI
$33.8K $10.66/SF
Area
Yavapai County, AZ
Vacancy
5.00%
Lease Rate
$20.40 /SF/Yr
Expense Ratio
45.00%
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%
$676,200
Cap Rate 7%
$483,000
Cap Rate 9%
$375,667
Alternative Uses
Best Use
Apartment 5plus
$483.0K
$422.6K – $563.5K
NOI $33,810 @ 7.0% cap · market cap 2.82%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.06M
$929.8K – $1.24M
NOI $74,383 @ 7.0% cap · market cap 6.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1
Businesses Nearby
Explore this area
Business Placement
Demographics for 86326, AZ
24,465
Population
12,243
Households
2
Avg Household Size
49
Median Age
25%
College-Educated
91%
High-School Grad
45.5 sq mi
ZIP Area
538
Density / Sq Mi
$58,250
Median Household Income
$36,479
Median Earnings
$1,102
Median Rent
$312,400
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Assisted living facility - Licensed residential care property with a separate casita, detached garage, and established assisted living operations.
Where is this assisted living facility located?
The property is located at 1600 E Assisted Living Way Cottonwood, AZ.
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: Licensed for 10 beds with 24 years of established operation; 3,172 square feet on a 0.45‑acre treed lot; Main residence includes 7 bedrooms and 3 bathrooms
