Prime Lake Havasu Investment
For Sale
$10,800,000
1870 Mcculloch Blvd N, Lake Havasu City, AZ 86403
Anchored strip mall in Lake Havasu City's health district.
Property Size100,000 SF
Lot Size7.45 Acres
Price / SF$108
Days on Market481
Property Features for 1870 Mcculloch Blvd N
General Information
Standard status
Active
Size
100,000 SF
Lot size
7.45 Acres
Taxes and HOA fees
Annual Taxes
$42,220
Listing Agency:
Keller Williams Arizona Living Realty
(928) 453-6111
Listed By:
Lucas Still · License #SA656360000
(928) 453-6111
Source:
Exprealty
Added: Apr 28, 2025
Changed: Aug 20
Last Checked: Aug 20 at 10:05AM
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 Keller Williams Arizona Living Realty
Investment Insights
Based on property information with market context.
This investment opportunity includes parcels 107-62-004 and 001. The property features an approximately 100,000 square foot anchor building, as well as a 15-unit strip mall that is currently 100% occupied. The location is in the heart of Lake Havasu City, adjacent to the Community Health District, which includes over 646 businesses. Some common area parking is shared with the public library. The improvements are well maintained with strong occupancy. There is an additional 0.43 acres of undeveloped land, not included in the sale, that is suitable for a restaurant.
Key Highlights
- Investment opportunity with great upside potential.
- Includes a 100,000 SF anchor building plus a 15‑unit strip mall.
- Strip mall is 100% occupied.**
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
$971,250
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
8.99%
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%
$19,425,000
$19.4M
Cap Rate 7%
$13,875,000
$13.9M
Cap Rate 9%
$10,791,667
$10.8M
Market Conditions
NOI Build-Up for 100,000 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
$1.50M $15.00/SF
− Vacancy
−$112.5K −$1.13/SF
EGI
$1.39M $13.88/SF
− OpEx
−$416.3K −$4.16/SF
NOI
$971.3K $9.71/SF
Area
Mohave County, AZ
Vacancy
7.50%
Lease Rate
$15.00 /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%
$19,425,000
Cap Rate 7%
$13,875,000
Cap Rate 9%
$10,791,667
Alternative Uses
Best Use
Retail
$13.87M
$12.14M – $16.19M
NOI $971,250 @ 7.0% cap · market cap 8.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$22.33M
$19.54M – $26.05M
NOI $1,562,880 @ 7.0% cap · market cap 14.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,341
Businesses Nearby
371k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 43%
Groceries 18%
Shops & Services 17%
Apparel 15%
Ross Dress for Less
Apparel
35,975 visits/mo
0.3 miles
Safeway
Groceries
34,599 visits/mo
0.2 miles
Albertsons
Groceries
30,836 visits/mo
0.2 miles
McDonald's
Dining
24,894 visits/mo
0.4 miles
Dutch Bros. Coffee
Dining
22,167 visits/mo
0.3 miles
Demographics for 86403, AZ
17,787
Population
11,604
Households
1.5
Avg Household Size
53
Median Age
18%
College-Educated
89%
High-School Grad
11.0 sq mi
ZIP Area
1,617
Density / Sq Mi
$57,531
Median Household Income
$33,368
Median Earnings
$1,152
Median Rent
$313,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Anchored strip mall in Lake Havasu City's health district.
Where is this strip mall located?
The property is located at 1870 Mcculloch Blvd N Lake Havasu City, AZ.
What is the asking price?
The asking price for this property is $10,800,000.
What are key features of this property?
This property features: Investment opportunity with great upside potential.; Includes a 100,000 SF anchor building plus a 15‑unit strip mall.; Strip mall is 100% occupied.**
