Tempe Garden-Style Apartment
For Sale
$1,700,000
Pending
425 427 W 5th Street, Tempe, AZ 85281
COMMERCIAL - Tempe, AZ
Property Size4,414 SF
Lot Size0.39 Acres
Days on Market184
Property Features for 425 427 W 5th Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Other - CALL
Lot features
Decorative Gravel, Adjacent to Alley
Directions
SEC of 5th St. / Wilson St Tempe AZ
Subdivision
Maricopa
Standard status
Pending
APN
124-33-008A
Size
4,414 SF
Lot size
0.39 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
Orth Sub McR 33/40 Pt Lt 8 Blk 1 N 100F & W 10F Of N 100F Lt 7 Blk 1 & Orth Sub McR 33/40 Lt 7 Blk 1 Ex W 10F Of N 10
Tax Annual Amount
4667
Legal Description
Orth Sub McR 33/40 Pt Lt 8 Blk 1 N 100F & W 10F Of N 100F Lt 7 Blk 1 & Orth Sub McR 33/40 Lt 7 Blk 1 Ex W 10F Of N 10
Utilities
Heating system
Electric (Heating), Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1957
Building materials
Block
Roof type
Shingle
Listing Agency:
Tierra Antigua Realty
(520) 544-2335
Listed By:
Mark Hays · License #AZ BR556215000
(520) 444-5401
Added: Feb 18
Changed: Aug 11
Last Checked: Aug 21 at 5:06PM
MLS# 22604561
Copyright © 2026 Multiple Listing Service of Southern Arizona. 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 garden-style apartment complex is located in Tempe's Orth Subdivision. The property features a total of 10 units: eight studio apartments of approximately 388 square feet each, one one-bedroom apartment of approximately 550 square feet, and one two-bedroom apartment of approximately 750 square feet. Constructed with block in 1957 and 1963, the property offers a reposition opportunity. The complex is situated within walking distance of the ASU Main Campus and is near the 202 Freeway and Sky Harbor Airport, as well as various restaurants and attractions. The lot size is 0.39 acres and the property size is 4,414 square feet.
Key Highlights
- 10‑plex garden‑style multifamily property in Tempe’s Orth Subdivision
- Unit mix includes 8 studios (~388 SF), 1/1 (~550 SF), and 1/2‑bed (~750 SF)
- Block construction with years built noted as 1957 and 1963
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
$59,825
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
3.52%
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%
$1,196,500
$1.2M
Cap Rate 7%
$854,643
$854.6K
Cap Rate 9%
$664,722
$664.7K
Market Conditions
NOI Build-Up for 4,414 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
$115.5K $26.16/SF
− Vacancy
−$6.7K −$1.52/SF
EGI
$108.8K $24.64/SF
− OpEx
−$48.9K −$11.09/SF
NOI
$59.8K $13.55/SF
Area
Tempe, AZ
Vacancy
5.80%
Lease Rate
$26.16 /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%
$1,196,500
Cap Rate 7%
$854,643
Cap Rate 9%
$664,722
Alternative Uses
Best Use
Apartment 5plus
$854.6K
$747.8K – $997.1K
NOI $59,825 @ 7.0% cap · market cap 3.52%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.39M
$1.21M – $1.62M
NOI $97,163 @ 7.0% cap · market cap 5.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
10
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,334
Businesses Nearby
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Garden-style 10-plex near ASU Main Campus in Tempe.
Where is this apartment building located?
The property is located at 425 427 W 5th Street Tempe, AZ.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: 10‑plex garden‑style multifamily property in Tempe’s Orth Subdivision; Unit mix includes 8 studios (~388 SF), 1/1 (~550 SF), and 1/2‑bed (~750 SF); Block construction with years built noted as 1957 and 1963
