Hotel with Event
For Sale
$700,000
109 S 3rd Street, Tombstone, AZ 85638
The property combines furnished lodging accommodations with a separately entered theater for events and gatherings.
Property Size6,505 SF
Days on Market158
Property Features for 109 S 3rd Street
General Information
Standard status
Active
Size
6,505 SF
Property subtype
Commercial
Zoning
Tombstone - B-1
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$4,542
Amenities
laundry room
storeroom
gathering space
Building Details
Building Size
6,505 SF
Year Built
1992
Listing Agency:
Good Oak Real Estate
(480) 223-2429
Listed By:
Tammy Medigovich · License #BR625515000
(480) 223-2429
Source:
Canteraland
Added: Mar 3
Changed: Aug 4
Last Checked: Aug 8 at 12:24PM
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.
Built in 1992, this operating hotel and theater property includes a varied lodging component and an additional venue for events. The upper level contains one private apartment with a bedroom, bathroom, living room, dining area, kitchen, and private balcony, along with 3 guest suites, each with a private bathroom. One suite also has a balcony overlooking the town. Laundry, storage, and gathering areas are included.
The lower level adds a studio apartment with a full bath and another apartment featuring a kitchen, bedroom, living room, bathroom, and storage. The theater has its own entrance, providing a distinct space for gatherings and performances. Furnishings and decor are included. The property is located at 109 S 3rd Street in Tombstone, near Allen Street, the OK Corral, and the town’s historic district and main street. Zoning is Tombstone - B-1.
The lower level adds a studio apartment with a full bath and another apartment featuring a kitchen, bedroom, living room, bathroom, and storage. The theater has its own entrance, providing a distinct space for gatherings and performances. Furnishings and decor are included. The property is located at 109 S 3rd Street in Tombstone, near Allen Street, the OK Corral, and the town’s historic district and main street. Zoning is Tombstone - B-1.
Key Highlights
- Operating hotel with separate theater entrance for events and gatherings
- Upper level includes 1 private apartment and 3 guest suites
- Lower level has a studio apartment plus 1 additional apartment
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
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
341
Businesses Nearby
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 - The property combines furnished lodging accommodations with a separately entered theater for events and gatherings.
Where is this hotel located?
The property is located at 109 S 3rd Street 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: Operating hotel with separate theater entrance for events and gatherings; Upper level includes 1 private apartment and 3 guest suites; Lower level has a studio apartment plus 1 additional apartment
