Ground-Floor Residential Income
For Sale
$265,000
10136 E Southern Avenue 1077, Mesa, AZ 85209
Gated community residence with a private tiled patio, attached garage, and access to shared recreational amenities.
Property Size1,268 SF
Days on Market29
Property Features for 10136 E Southern Avenue 1077
General Information
Standard status
Active
Size
1,268 SF
Total Parking Spaces
1
Property subtype
Apartment
Units
Unit Mix
1 x 3BR/2BA
Multifamily Units
1
Additional Details
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$1,254
Amenities
clubhouse
heated pool
spa
green areas
extended patio
Building Details
Building Size
1,268 SF
Year Built
2007
Listing Agency:
Denali Real Estate, LLC
(602) 570-1816
Listed By:
Chad Hagenson · License #SA511594000
(602) 570-1816
Source:
Lostdutchmanrealty
Added: Jul 25
Changed: Aug 14
Last Checked: Aug 21 at 10:54AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Denali Real Estate, LLC
Investment Insights
Based on property information with market context.
This ground-level residential income property, built in 2007, offers three bedrooms and two full bathrooms in an open-concept layout. The kitchen provides ample counter space and storage, while the primary suite includes a walk-in closet and bathroom with dual sinks. An extended tiled patio expands the living area for outdoor use, and a one-car garage is located across the parking lot.
The home is part of a gated community with a clubhouse, heated pool, spa, and landscaped green areas. Restaurants, shopping centers, schools, parks, and hospitals are nearby, with convenient freeway access adding to the property's connectivity.
The home is part of a gated community with a clubhouse, heated pool, spa, and landscaped green areas. Restaurants, shopping centers, schools, parks, and hospitals are nearby, with convenient freeway access adding to the property's connectivity.
Key Highlights
- Three‑bedroom, two‑bathroom ground‑floor unit
- Built in 2007
- Extended tiled patio for outdoor living
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
$12,911
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
4.87%
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%
$258,220
$258.2K
Cap Rate 7%
$184,443
$184.4K
Cap Rate 9%
$143,456
$143.5K
Market Conditions
NOI Build-Up for 1,268 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
$25.1K $19.80/SF
− Vacancy
−$1.6K −$1.29/SF
EGI
$23.5K $18.51/SF
− OpEx
−$10.6K −$8.33/SF
NOI
$12.9K $10.18/SF
Area
ZIP 85209
Vacancy
6.50%
Lease Rate
$19.80 /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%
$258,220
Cap Rate 7%
$184,443
Cap Rate 9%
$143,456
Alternative Uses
Best Use
Apartment 5plus
$184.4K
$161.4K – $215.2K
NOI $12,911 @ 7.0% cap · market cap 4.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$421.0K
$368.4K – $491.2K
NOI $29,472 @ 7.0% cap · market cap 11.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
620
Businesses Nearby
Explore this area
Business Placement
Demographics for 85209, AZ
44,192
Population
21,921
Households
2
Avg Household Size
44
Median Age
33%
College-Educated
93%
High-School Grad
11.8 sq mi
ZIP Area
3,745
Density / Sq Mi
$80,498
Median Household Income
$46,682
Median Earnings
$1,798
Median Rent
$363,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Gated community residence with a private tiled patio, attached garage, and access to shared recreational amenities.
Where is this residential income property located?
The property is located at 10136 E Southern Avenue 1077 Mesa, AZ.
What is the asking price?
The asking price for this property is $265,000.
What are key features of this property?
This property features: Three‑bedroom, two‑bathroom ground‑floor unit; Built in 2007; Extended tiled patio for outdoor living
