Tucson Retail Property For
For Sale
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2820 W Los Reales Rd, Tucson, AZ
Retail property in Tucson, Arizona, with a corporate-guaranteed tenant.
Property Size8,320 SF
Lot Size1.00 Acre
Price / SF$192.31
Days on Market891
Property Features for 2820 W Los Reales Rd
General Information
Standard status
Active
Size
8,320 SF
Lot size
1.00 Acre
Property subtype
RETAIL
Listing Agency:
Echo West Capital Advisors
(208) 841-7310
Listed By:
Sean Westfall · License #SA700127000
(602) 885-5375
Source:
Moodyscre
Added: Mar 4, 2024
Changed: Aug 9
Last Checked: Aug 9 at 10:03PM
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 Echo West Capital Advisors
Investment Insights
Based on property information with market context.
This retail property is located in Tucson, Arizona, within a sub-market experiencing rapid home development. The surrounding area includes new residential construction and master-planned communities. Specifically, Saguaro Haven by KB Homes, a new 39-acre community with 143 lots, is coming in Spring 2024, located 1.5 miles away. The Star Valley Master Planned Community, spanning 1,437 acres, currently houses 1,500 families and is planned for approximately 3,000. Homebuilders in this community include Lennar Homes, Meritage Homes, and Richmond American Homes. Lennar Homes and Meritage Homes have expanded by acquiring 272 finished lots (81 and 191 lots respectively) for their next phase of development, located 5 miles away. The property benefits from strong demographics, supported by over 106,000 residents within a 5-mile radius. It is also in proximity to Tucson International Airport (7 miles), Pima Community College - Desert Vista Campus (4 miles), and Casino Del Sol (4 miles). The property is supported by Tucson being Arizona's second most populous city with over 1 million people in the metropolitan area. The property is a built-to-suit location from 2013. The tenant, Family Dollar, recently exercised its 1st option, demonstrating their long-term commitment to the site. The offering features an NN lease structure with landlord responsibilities limited to roof, structure, and parking lot repairs in excess of $1,000. The property is approximately 8,320 square feet.
Key Highlights
- Corporate Guarantee: Investment Grade Tenant (S&P: BBB) Family Dollar, Inc.
- Recession & E‑Commerce Resistant Tenant: "Essential" Business.
- Located in an Exploding Home Development Sub‑Market: Surrounded by new residential construction.
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
$79,085
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
4.94%
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%
$1,581,700
$1.6M
Cap Rate 7%
$1,129,786
$1.1M
Cap Rate 9%
$878,722
$878.7K
Market Conditions
NOI Build-Up for 8,320 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
$119.8K $14.40/SF
− Vacancy
−$6.8K −$0.82/SF
EGI
$113.0K $13.58/SF
− OpEx
−$33.9K −$4.07/SF
NOI
$79.1K $9.51/SF
Area
Tucson, AZ
Vacancy
5.70%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
30.00%
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%
$1,581,700
Cap Rate 7%
$1,129,786
Cap Rate 9%
$878,722
Alternative Uses
Best Use
Retail
$1.13M
$988.6K – $1.32M
NOI $79,085 @ 7.0% cap · market cap 4.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.16M
$1.89M – $2.52M
NOI $151,294 @ 7.0% cap · market cap 9.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
91
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Retail in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Retail property in Tucson, Arizona, with a corporate-guaranteed tenant.
Where is this storefront property located?
The property is located at 2820 W Los Reales Rd Tucson, AZ.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Corporate Guarantee: Investment Grade Tenant (S&P: BBB) Family Dollar, Inc.; Recession & E‑Commerce Resistant Tenant: "Essential" Business.; Located in an Exploding Home Development Sub‑Market: Surrounded by new residential construction.
