Exceptional Location, Commercial/Residential
For Sale
$849,500
1237 N Rhinestone Dr, Prescott, AZ 86301
Rare Opportunity for Exceptional Location Zoned For Commercial and/or Residential
Property Size2,863 SF
Lot Size0.91 Acres
Price / SF$296.72
Days on Market207
Property Features for 1237 N Rhinestone Dr
General Information
Standard status
Active
Property type
Office buildings, Office Spaces
Size
2,863 SF
Net Rentable
2,863 SF
Total Parking Spaces
11
Lot size
0.91 Acres
Building Details
Year Built
2004
Buildings
1
Stories
1
Listing Agency:
(928) 515-2363
Listed By:
Living
(928) 515-2363
Added: Feb 3
Changed: Apr 8
Investment Insights
Based on property information with market context.
This property, originally constructed as a model home, is situated in a rapidly developing area near a new hospital and offers significant advertising potential due to its visibility from Highway 69, a major thoroughfare to Prescott. The property is centrally located to serve Prescott, Prescott Valley, Chino Valley, and Dewey, Arizona. Zoned RS-12 (Residential and Services), it features professional landscaping and a recently resurfaced and sealed parking lot, providing convenient access to the Quad Cities area. The building's placement ensures minimal neighbor visibility and maximizes views of the valley and mountains. The 2863-square-foot property can function as a residence, a commercial space, or a combination of both, offering diverse income opportunities. A separate residential entrance allows for dual-purpose use, enabling occupancy or rental of the residential section. The walk-in basement facilitates remodeling and provides ample storage. The commercial septic system is designed to accommodate an additional building. Located in Yavapai County, the property benefits from the absence of city taxes. The lot size is 0.91 acres.
Key Highlights
- Zoning: RS‑12 (Residential and Services)
- Centrally located to serve Prescott, Prescott Valley, Chino Valley and Dewey, Arizona (Quad Cities).
- Dual‑purpose layout with separate residential entrance. Escape the commute and occupy or rent the residential side.
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
$41,640
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
4.90%
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%
$832,800
$832.8K
Cap Rate 7%
$594,857
$594.9K
Cap Rate 9%
$462,667
$462.7K
Market Conditions
NOI Build-Up for 2,863 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
$66.7K $23.28/SF
− Vacancy
−$11.1K −$3.89/SF
EGI
$55.5K $19.39/SF
− OpEx
−$13.9K −$4.85/SF
NOI
$41.6K $14.54/SF
Area
Yavapai County, AZ
Vacancy
16.70%
Lease Rate
$23.28 /SF/Yr
Expense Ratio
25.00%
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%
$832,800
Cap Rate 7%
$594,857
Cap Rate 9%
$462,667
Alternative Uses
Best Use
Office B
$594.9K
$520.5K – $694.0K
NOI $41,640 @ 7.0% cap · market cap 4.90%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$959.1K
$839.2K – $1.12M
NOI $67,137 @ 7.0% cap · market cap 7.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
80
Businesses Nearby
Explore this area
Business Placement
Demographics for 86301, AZ
25,115
Population
13,863
Households
1.8
Avg Household Size
57
Median Age
37%
College-Educated
96%
High-School Grad
33.4 sq mi
ZIP Area
752
Density / Sq Mi
$71,962
Median Household Income
$33,989
Median Earnings
$1,580
Median Rent
$495,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Rare Opportunity for Exceptional Location Zoned For Commercial and/or Residential
Where is this office building located?
The property is located at 1237 N Rhinestone Dr Prescott, AZ.
What is the asking price?
The asking price for this property is $849,500.
What are key features of this property?
This property features: Zoning: RS‑12 (Residential and Services); Centrally located to serve Prescott, Prescott Valley, Chino Valley and Dewey, Arizona (Quad Cities).; Dual‑purpose layout with separate residential entrance. Escape the commute and occupy or rent the residential side.
