Renovation Opportunity in Central
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2432 N Balboa Ave, Tucson, AZ 85705
Two vacant multifamily properties in central Tucson, renovation opportunity.
Property Size11,760 SF
Price / SF$118.62
Days on Market488
Property Features for 2432 N Balboa Ave
General Information
Standard status
Active
Size
11,760 SF
Class
C
Property subtype
Multifamily
Zoning
R-1, R-2, City of Tucson
Investment Type
Value Add
Building Details
Buildings
8
Stories
1
Units
29
Listing Agency:
Equilibrium Real Estate Investments
Listed By:
Joseph Dietz · License #AZ 549120000
Source:
Crexi
Added: Apr 21, 2025
Changed: Aug 8
Last Checked: Aug 20 at 5:02PM
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 Equilibrium Real Estate Investments
Investment Insights
Based on property information with market context.
Two properties, located in central Tucson, present a renovation opportunity. One property, situated on Balboa Avenue, features 15 vacant one-bedroom units constructed in 1948. The second property, Delano Court, comprises 14 vacant units with a mix of studio, one-bedroom, and two-bedroom layouts, built in 1947. Both properties have permits for all renovations required to begin leasing operations. The total property size is 11760 square feet. Estimates range from $15,000 to $30,000 per unit to complete renovations. At stabilization, the value is projected to exceed $2.5 million to $3.0 million.
Key Highlights
- Two properties included, totaling 29 units.
- Vacant properties allow for immediate renovation and leasing.
- Permitted for all renovations required to begin leasing operations.
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
$103,067
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
7.39%
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%
$2,061,340
$2.1M
Cap Rate 7%
$1,472,386
$1.5M
Cap Rate 9%
$1,145,189
$1.1M
Market Conditions
NOI Build-Up for 11,760 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
$204.6K $17.40/SF
− Vacancy
−$17.2K −$1.47/SF
EGI
$187.4K $15.93/SF
− OpEx
−$84.3K −$7.17/SF
NOI
$103.1K $8.76/SF
Area
ZIP 85705
Vacancy
8.42%
Lease Rate
$17.40 /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%
$2,061,340
Cap Rate 7%
$1,472,386
Cap Rate 9%
$1,145,189
Alternative Uses
Best Use
Apartment 5plus
$1.47M
$1.29M – $1.72M
NOI $103,067 @ 7.0% cap · market cap 7.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.71M
$2.37M – $3.16M
NOI $189,428 @ 7.0% cap · market cap 13.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,086
Businesses Nearby
Explore this area
Business Placement
Demographics for 85705, AZ
56,711
Population
29,145
Households
1.9
Avg Household Size
36
Median Age
20%
College-Educated
80%
High-School Grad
13.6 sq mi
ZIP Area
4,170
Density / Sq Mi
$36,606
Median Household Income
$27,220
Median Earnings
$924
Median Rent
$113,700
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Two vacant multifamily properties in central Tucson, renovation opportunity.
Where is this apartment building located?
The property is located at 2432 N Balboa Ave Tucson, AZ.
What is the asking price?
The asking price for this property is $1,395,000.
What are key features of this property?
This property features: Two properties included, totaling 29 units.; Vacant properties allow for immediate renovation and leasing.; Permitted for all renovations required to begin leasing operations.
