Historic Tombstone Building Near
For Sale
Contact for pricing
109 S 3rd St, Tombstone, AZ 85638
6,500 SF building near Tombstone's historic district.
Property Size6,505 SF
Price / SF$107.61
Days on Market170
Property Features for 109 S 3rd St
General Information
Standard status
Active
Size
6,505 SF
Property subtype
Hospitality, Retail
Zoning
Hotel/Retail
Investment Type
Owner/User
Building Details
Year Built
1992
Year Renovated
2014
Buildings
1
Stories
2
Units
6
Listing Agency:
Good Oak Real Estate
(480) 223-2429
Listed By:
Tammy Medigovich · License #BR625515000
Source:
Crexi
Added: Mar 4
Changed: Aug 14
Last Checked: Aug 20 at 11:17AM
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 Good Oak Real Estate
Investment Insights
Based on property information with market context.
This 6,505 square foot building is located steps away from the Tombstone historic district, main street, and the OK Corral. The building frontage benefits from heavy foot and auto traffic due to its proximity to Allen Street, which is closed to auto traffic to allow pedestrians to enjoy shopping, restaurants, and live entertainment. Currently operating as a hotel, the property features three guest suites and a rented theater space. An upstairs apartment is used by the owner, and a first-floor apartment is occupied by the onsite property manager. A first-floor studio is reserved for personal use but could be vacated. The building is being sold with all furnishings and decor, excluding the private property of the onsite manager and theater group. The building could continue as a hotel, or be converted into retail shops or office space. The upstairs includes a private apartment with a bedroom, bathroom, living room, dining room, kitchen, and private balcony, plus three guest suites with private bathrooms, one with a balcony overlooking the town, a laundry room, a storeroom, and a common area. Access to the upstairs is from the exterior of the building. Downstairs features a studio apartment with a full bath and private exterior entrance, and an apartment with a kitchen, bedroom, living room, bathroom, laundry room, and storage, also with a private exterior entrance. The theater/event space has a separate entrance and is ideal for hosting events. It is currently leased by a theater group performing wild west reenactments.
Key Highlights
- Prime location steps from Tombstone's historic district, Allen Street, and the OK Corral, benefiting from heavy foot and auto traffic.
- Substantial 6,500 sq ft building suitable for continued hotel operation, retail shops, or office space.
- Currently operating as a hotel with 3 guest suites, theater space rental, and apartments, offering immediate income potential.
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
$33,259
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
4.75%
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%
$665,180
$665.2K
Cap Rate 7%
$475,129
$475.1K
Cap Rate 9%
$369,544
$369.5K
Market Conditions
NOI Build-Up for 6,505 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
$89.8K $13.80/SF
− Vacancy
−$19.7K −$3.04/SF
EGI
$70.0K $10.76/SF
− OpEx
−$36.8K −$5.65/SF
NOI
$33.3K $5.11/SF
Area
Cochise County, AZ
Vacancy
22.00%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
52.50%
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%
$665,180
Cap Rate 7%
$475,129
Cap Rate 9%
$369,544
Alternative Uses
Best Use
Hotel Hospitality
$475.1K
$415.7K – $554.3K
NOI $33,259 @ 7.0% cap · market cap 4.75%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$963.9K
$843.4K – $1.12M
NOI $67,473 @ 7.0% cap · market cap 9.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
Explore this area
Business Placement
Demographics for 85638, AZ
1,886
Population
1,127
Households
1.7
Avg Household Size
61
Median Age
18%
College-Educated
93%
High-School Grad
270.0 sq mi
ZIP Area
7
Density / Sq Mi
$56,172
Median Household Income
$37,891
Median Earnings
$779
Median Rent
$170,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - 6,500 SF building near Tombstone's historic district.
Where is this hotel located?
The property is located at 109 S 3rd St Tombstone, AZ.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: Prime location steps from Tombstone's historic district, Allen Street, and the OK Corral, benefiting from heavy foot and auto traffic.; Substantial 6,500 sq ft building suitable for continued hotel operation, retail shops, or office space.; Currently operating as a hotel with 3 guest suites, theater space rental, and apartments, offering immediate income potential.
