Unoccupied Duplex in Phoenix,
For Sale
$529,000
1638 South 5th Street, Phoenix, AZ 85004
Value-add duplex near downtown Phoenix with strong rental potential.
Property Size2,464 SF
Days on Market97
Property Features for 1638 South 5th Street
General Information
Standard status
Active
Size
2,464 SF
Property subtype
MultiFamily Apartments
Building Details
Building Size
2,464 SF
Year Built
2006
Listing Agency:
Keller Williams Commercial
(480) 231-3900
Listed By:
Hani Aldulaimi · License #BR533683000
(480) 231-3900
Source:
Thebrokerlist
Added: May 18
Changed: Aug 14
Last Checked: Aug 14 at 6:08AM
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 Keller Williams Commercial
Investment Insights
Based on property information with market context.
This is an opportunity to capitalize on an unoccupied duplex with no shared walls, constructed in the mid-2000s. A refresh could increase rental income, presenting a value-add investment opportunity. Continued migration to the Phoenix metro area supports a strong rental market, with numerous large employers nearby. The property's proximity to sports arenas (MLB, NBA, and WNBA), golfing, shopping, dining, entertainment, museums, and art galleries also makes it suitable for short-term rentals. Easy access to the I-17, US 60, I-10, and Loop 202 freeways provides convenient access for both long-term and short-term rental occupants, as well as potential owner-users. Located in downtown Phoenix, Arizona, the property is surrounded by dining, shopping, and entertainment options, including the Phoenix Art Museum, Heard Museum, and the Arizona Science Center. This urban location offers residential investors the chance to tap into a growing rental market, with residents benefiting from easy access to city amenities. The property also features off-street covered parking.
Key Highlights
- High rental income potential due to strong Phoenix rental market and no shared walls.
- Excellent location with easy access to I‑17, US 60, I‑10 and Loop 202 freeways.
- Proximity to sports arenas, golfing, shopping, dining, entertainment, museums and art galleries.
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
$32,273
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
6.10%
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%
$645,460
$645.5K
Cap Rate 7%
$461,043
$461.0K
Cap Rate 9%
$358,589
$358.6K
Market Conditions
NOI Build-Up for 2,464 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
$48.8K $19.80/SF
− Vacancy
−$2.7K −$1.09/SF
EGI
$46.1K $18.71/SF
− OpEx
−$13.8K −$5.61/SF
NOI
$32.3K $13.10/SF
Area
Phoenix, AZ
Vacancy
5.50%
Lease Rate
$19.80 /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%
$645,460
Cap Rate 7%
$461,043
Cap Rate 9%
$358,589
Alternative Uses
Best Use
Multifamily LT 5
$461.0K
$403.4K – $537.9K
NOI $32,273 @ 7.0% cap · market cap 6.10%
Second Best
Apartment 5plus
$410.6K
$359.2K – $479.0K
NOI $28,739 @ 7.0% cap · market cap 5.43%
Theoretical Best
Office A
$746.4K
$653.1K – $870.8K
NOI $52,246 @ 7.0% cap · market cap 9.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
782
Businesses Nearby
Explore this area
Business Placement
Demographics for 85004, AZ
8,833
Population
6,455
Households
1.4
Avg Household Size
32
Median Age
59%
College-Educated
90%
High-School Grad
2.1 sq mi
ZIP Area
4,206
Density / Sq Mi
$71,250
Median Household Income
$46,376
Median Earnings
$1,759
Median Rent
$365,500
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?
Duplex - Value-add duplex near downtown Phoenix with strong rental potential.
Where is this duplex located?
The property is located at 1638 South 5th Street Phoenix, AZ.
What is the asking price?
The asking price for this property is $529,000.
What are key features of this property?
This property features: High rental income potential due to strong Phoenix rental market and no shared walls.; Excellent location with easy access to I‑17, US 60, I‑10 and Loop 202 freeways.; Proximity to sports arenas, golfing, shopping, dining, entertainment, museums and art galleries.
