Furnished Residential Income
For Sale
$300,000
1111 W University Drive #2012, Tempe, AZ 85281
Tenant occupancy continues through 7/31/27, with all furniture included in the sale.
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
Site & Location
Highway Access
Yes
Utilities to Site
Yes
Additional Details
Furnished
Yes
Average Monthly Rent
$2,500
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$1,669
Amenities
community pool & spa
BBQ
private gym
gated underground parking
pedestrian entry
inside laundry room
balcony
walk-in closet
large gated storage unit
SS fridge
dark gray cabinets
Building Details
Building Size
896 SF
Year Built
2005
Stories
3
Tenancy
Single
Listing Agency:
Weichert, Realtors - Courtney Valleywide
(480) 751-9582
Listed By:
Nicole Courtney Kowal
(480) 751-9582
Source:
Sunhaven-realestate
Added: Aug 22
Changed: Aug 31
Last Checked: Aug 31 at 5:11PM
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.
Built in 2005, this residential income property is offered with its existing furniture and tenant occupancy through 7/31/27. The unit includes a contemporary kitchen with stainless steel refrigerator and dark gray cabinetry, a primary bedroom with a walk-in closet, an interior laundry room, and a balcony. A water heater installed in 2025 adds a recent mechanical update.
Community features include a pool and spa, BBQ area, private gym, gated underground parking, pedestrian entry, and a large gated storage unit within the parking garage. The property is located near ASU Tempe Campus, Mill Avenue dining and entertainment, Whole Foods, Sky Harbor Airport, and freeways 202, 143, and I-10. The HOA permits short-term rentals and includes water, sewer, and trash.
Community features include a pool and spa, BBQ area, private gym, gated underground parking, pedestrian entry, and a large gated storage unit within the parking garage. The property is located near ASU Tempe Campus, Mill Avenue dining and entertainment, Whole Foods, Sky Harbor Airport, and freeways 202, 143, and I-10. The HOA permits short-term rentals and includes water, sewer, and trash.
Key Highlights
- Tenant occupancy through 7/31/27; furniture included in the sale
- Water heater replaced in 2025
- Balcony, interior laundry room, and large primary‑bedroom walk‑in closet
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
Property Profile
Current Use
Lease Details
1
Residential units
Single-tenant
Tenancy
Yes
Highway access
Yes
Utilities to site
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Tenant occupancy continues through 7/31/27, with all furniture included in the sale.
Where is this residential income 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 occupancy through 7/31/27; furniture included in the sale; Water heater replaced in 2025; Balcony, interior laundry room, and large primary‑bedroom walk‑in closet
