Updated Ground-Level Residential
For Sale
$310,000
1215 E LEMON Street 107, Tempe, AZ 85281
Renovated unit with stainless appliances, granite countertops, in-unit laundry, covered patio, and access to a community pool.
Property Size960 SF
Days on Market8
Property Features for 1215 E LEMON Street 107
General Information
Standard status
Active
Size
960 SF
Property subtype
Apartment
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$1,381
Amenities
pool
covered patio
washer and dryer
Building Details
Building Size
960 SF
Year Built
1986
Listing Agency:
West USA Realty
(480) 824-8485
Listed By:
Shuyan Zhou-Harden
(480) 824-8485
Source:
Alexiabertsatos
Added: Aug 24
Changed: Aug 31
Last Checked: Aug 31 at 8:32AM
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 West USA Realty
Investment Insights
Based on property information with market context.
This ground-level residential unit, built in 1986, has been refreshed with tile flooring, ceiling fans, and updated interior finishes. The living and dining areas connect in an open configuration, while the kitchen includes ample cabinetry, stainless steel appliances, and granite countertops. The primary bedroom offers a walk-in closet and private bathroom, and a washer and dryer are included.
Outdoor features include a covered patio and access to the community pool. The property is located within the Commons on Lemon Community in Tempe, Arizona.
Outdoor features include a covered patio and access to the community pool. The property is located within the Commons on Lemon Community in Tempe, Arizona.
Key Highlights
- Ground‑level unit in the Commons on Lemon Community
- Updated kitchen with cabinetry, stainless steel appliances, and granite countertops
- Primary bedroom with walk‑in closet and private bathroom
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
$13,011
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
4.20%
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%
$260,220
$260.2K
Cap Rate 7%
$185,871
$185.9K
Cap Rate 9%
$144,567
$144.6K
Market Conditions
NOI Build-Up for 960 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
$25.1K $26.16/SF
− Vacancy
−$1.5K −$1.52/SF
EGI
$23.7K $24.64/SF
− OpEx
−$10.6K −$11.09/SF
NOI
$13.0K $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%
$260,220
Cap Rate 7%
$185,871
Cap Rate 9%
$144,567
Alternative Uses
Best Use
Apartment 5plus
$185.9K
$162.6K – $216.9K
NOI $13,011 @ 7.0% cap · market cap 4.20%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$301.9K
$264.2K – $352.2K
NOI $21,132 @ 7.0% cap · market cap 6.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
1,208
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 - Renovated unit with stainless appliances, granite countertops, in-unit laundry, covered patio, and access to a community pool.
Where is this residential income property located?
The property is located at 1215 E LEMON Street 107 Tempe, AZ.
What is the asking price?
The asking price for this property is $310,000.
What are key features of this property?
This property features: Ground‑level unit in the Commons on Lemon Community; Updated kitchen with cabinetry, stainless steel appliances, and granite countertops; Primary bedroom with walk‑in closet and private bathroom
