Short-Term Rental Property with
For Sale
$300,000
1111 W UNIVERSITY Drive 2012, Tempe, AZ 85281
Furnished residence with in-unit laundry and access to a pool, spa, gym, and gated underground parking.
Property Size896 SF
Days on Market10
Property Features for 1111 W UNIVERSITY Drive 2012
General Information
Standard status
Active
Size
896 SF
Property subtype
Apartment
Additional Details
Furnished
Yes
Average Monthly Rent
$2,500
Highway Access
Yes
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$1,669
Amenities
pool
spa
BBQ
private gym
gated underground parking
pedestrian entry
in-unit laundry
balcony
Building Details
Building Size
896 SF
Year Built
2005
Tenancy
Single
Listing Agency:
Weichert, Realtors - Courtney Valleywide
(480) 751-9582
Listed By:
Nicole Courtney Kowal
(480) 751-9582
Source:
Alexiabertsatos
Added: Aug 11
Changed: Aug 14
Last Checked: Aug 20 at 12:27PM
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 Weichert, Realtors - Courtney Valleywide
Investment Insights
Based on property information with market context.
This furnished short-term rental property is tenant occupied through 7/31/27 and includes all furniture in the sale. The residence features a modern kitchen with a stainless steel refrigerator and dark gray cabinetry, a primary bedroom with a walk-in closet, a private balcony, and an interior laundry room. A new water heater was installed in 2025.
Community amenities include a pool and spa, barbecue area, private gym, gated underground parking, pedestrian entry, and a gated storage unit in the parking garage. The HOA allows short-term rentals and includes water, sewer, and trash. The property is near ASU Tempe Campus, Mill Avenue dining and entertainment, Whole Foods, Sky Harbor Airport, and freeways 202, 143, and I-10.
Community amenities include a pool and spa, barbecue area, private gym, gated underground parking, pedestrian entry, and a gated storage unit in the parking garage. The HOA allows short-term rentals and includes water, sewer, and trash. The property is near ASU Tempe Campus, Mill Avenue dining and entertainment, Whole Foods, Sky Harbor Airport, and freeways 202, 143, and I-10.
Key Highlights
- Tenant occupied through 7/31/27
- All furniture included in the sale
- New water heater installed in 2025
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
$12,144
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
4.05%
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%
$242,880
$242.9K
Cap Rate 7%
$173,486
$173.5K
Cap Rate 9%
$134,933
$134.9K
Market Conditions
NOI Build-Up for 896 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
$23.4K $26.16/SF
− Vacancy
−$1.4K −$1.52/SF
EGI
$22.1K $24.64/SF
− OpEx
−$9.9K −$11.09/SF
NOI
$12.1K $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%
$242,880
Cap Rate 7%
$173,486
Cap Rate 9%
$134,933
Alternative Uses
Best Use
Apartment 5plus
$173.5K
$151.8K – $202.4K
NOI $12,144 @ 7.0% cap · market cap 4.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$281.8K
$246.5K – $328.7K
NOI $19,723 @ 7.0% cap · market cap 6.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,259
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?
Short term rental property - Furnished residence with in-unit laundry and access to a pool, spa, gym, and gated underground parking.
Where is this short term rental property located?
The property is located at 1111 W UNIVERSITY Drive 2012 Tempe, AZ.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: Tenant occupied through 7/31/27; All furniture included in the sale; New water heater installed in 2025
