Mixed-Use Office & Retail
For Sale
Contact for pricing
120 N Stone Ave, Tucson, AZ 85701
Downtown Tucson mixed-use building with a long-running PNC Bank branch and direct parking-structure access.
Property Size36,064 SF
Price / SF$108.14
Days on Market124
Property Features for 120 N Stone Ave
General Information
Standard status
Active
Size
36,064 SF
Total Parking Spaces
24
Property subtype
OFFICE
Zoning
OCR-2
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Sprinkler System
Yes
Listing Agency:
Cushman & Wakefield | Phoenix
(602) 954-9000
Listed By:
Eric Wichterman · License #SA109618000
(602) 224-4471
Source:
Moodyscre
Added: May 14
Changed: Sep 13
Last Checked: Sep 13 at 10:08AM
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 Cushman & Wakefield | Phoenix
Investment Insights
Based on property information with market context.
This mixed-use office and retail property offers an owner/user the ability to occupy up to 120,516 SF, with an additional 6,322 SF basement area that is currently underutilized. The basement includes 11' ceilings, fire suppression sprinklers, three stairwells, and an elevator, and it may be occupied as-is or converted to retail use. The property is anchored by a PNC Bank branch that has operated at the site since 1990.
Located on Stone Avenue in the Central Business District of downtown Tucson, the building provides direct access to an adjacent parking garage. Ownership includes 24 parking spaces, plus ROFR on an additional 94 parking spaces under a perpetual easement. The property is served by a transit-oriented setting with near-immediate light rail access via the Sun Link Streetcar and approximately 1/2-mile access to Interstate 10.
The property is zoned OCR-2 (office/commercial/residential), which supports a variety of tenant uses, and the seller notes the property has been expertly maintained since 2004. Seller financing is available.
Located on Stone Avenue in the Central Business District of downtown Tucson, the building provides direct access to an adjacent parking garage. Ownership includes 24 parking spaces, plus ROFR on an additional 94 parking spaces under a perpetual easement. The property is served by a transit-oriented setting with near-immediate light rail access via the Sun Link Streetcar and approximately 1/2-mile access to Interstate 10.
The property is zoned OCR-2 (office/commercial/residential), which supports a variety of tenant uses, and the seller notes the property has been expertly maintained since 2004. Seller financing is available.
Key Highlights
- Downtown Tucson mixed‑use office & retail building anchored by a long‑running PNC Bank branch operating since 1990
- Owner/user can occupy up to ±20,516 SF; includes an underutilized basement with ±6,322 SF that may be occupied as‑is or converted to retail
- Stone Avenue frontage in Tucson’s Central Business District (OCR‑2 zoning: office/commercial/residential)
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
$342,804
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
8.79%
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%
$6,856,080
$6.9M
Cap Rate 7%
$4,897,200
$4.9M
Cap Rate 9%
$3,808,933
$3.8M
Market Conditions
NOI Build-Up for 36,064 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
$519.3K $14.40/SF
− Vacancy
−$29.6K −$0.82/SF
EGI
$489.7K $13.58/SF
− OpEx
−$146.9K −$4.07/SF
NOI
$342.8K $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%
$6,856,080
Cap Rate 7%
$4,897,200
Cap Rate 9%
$3,808,933
Alternative Uses
Best Use
Office B
$7.53M
$6.59M – $8.78M
NOI $526,982 @ 7.0% cap · market cap 13.51%
Second Best
Specialty Retail
$5.25M
$4.59M – $6.12M
NOI $367,290 @ 7.0% cap · market cap 9.42%
Theoretical Best
Office A
$9.37M
$8.20M – $10.93M
NOI $655,799 @ 7.0% cap · market cap 16.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Sprinkler system
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
3,480
Businesses Nearby
Explore this area
Business Placement
Demographics for 85701, AZ
5,132
Population
3,631
Households
1.4
Avg Household Size
37
Median Age
57%
College-Educated
91%
High-School Grad
1.5 sq mi
ZIP Area
3,421
Density / Sq Mi
$52,672
Median Household Income
$43,762
Median Earnings
$1,183
Median Rent
$451,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Downtown Tucson mixed-use building with a long-running PNC Bank branch and direct parking-structure access.
Where is this office building located?
The property is located at 120 N Stone Ave Tucson, AZ.
What is the asking price?
The asking price for this property is $3,900,000.
What are key features of this property?
This property features: Downtown Tucson mixed‑use office & retail building anchored by a long‑running PNC Bank branch operating since 1990; Owner/user can occupy up to ±20,516 SF; includes an underutilized basement with ±6,322 SF that may be occupied as‑is or converted to retail; Stone Avenue frontage in Tucson’s Central Business District (OCR‑2 zoning: office/commercial/residential)
