Phoenix Multifamily Investment
For Sale
$766,500
1318 E CULVER Street, Phoenix, AZ 85006
Value-add four-unit property in a strong Phoenix rental submarket.
Property Size2,484 SF
Price / SF$308.57
Days on Market210
Property Features for 1318 E CULVER Street
General Information
Standard status
Active
Size
2,484 SF
Property subtype
Multi Family
Taxes and HOA fees
Annual Taxes
$1,724
Building Details
Year Built
1985
Listing Agency:
Levrose Real Estate
(480) 329-6083
Listed By:
Eric P Hegarty · License #SA650759000
(480) 329-6083
Source:
Exitrealty
Added: Jan 26
Changed: Aug 23
Last Checked: Aug 7 at 4:11AM
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 Levrose Real Estate
Investment Insights
Based on property information with market context.
This multifamily property, featuring four units, presents a value-add investment opportunity. Each unit includes two bedrooms. The property features a mix of renovated units, offering potential for increased value. The proforma is based on a conservative market rent of $1200 per unit. Actual rents are $1173, $1071, and $895, with one vacant unit being prepared after a long-term tenant moved out. The roof is approximately 5 years old, and three AC units are approximately 3 years old. The property is located in central Phoenix, with close proximity to employment centers, Downtown Phoenix, and freeways. This asset is positioned for cash flow and appreciation.
Key Highlights
- Value‑add investment opportunity in a strong Phoenix rental submarket.
- Mix of renovated units with potential for increased rental income.
- Proforma based on conservative market rent of $1200 per unit.
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
$32,535
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
4.24%
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%
$650,700
$650.7K
Cap Rate 7%
$464,786
$464.8K
Cap Rate 9%
$361,500
$361.5K
Market Conditions
NOI Build-Up for 2,484 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
$49.2K $19.80/SF
− Vacancy
−$2.7K −$1.09/SF
EGI
$46.5K $18.71/SF
− OpEx
−$13.9K −$5.61/SF
NOI
$32.5K $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%
$650,700
Cap Rate 7%
$464,786
Cap Rate 9%
$361,500
Alternative Uses
Best Use
Multifamily LT 5
$464.8K
$406.7K – $542.3K
NOI $32,535 @ 7.0% cap · market cap 4.24%
Second Best
Apartment 5plus
$413.9K
$362.2K – $482.9K
NOI $28,972 @ 7.0% cap · market cap 3.78%
Theoretical Best
Office A
$752.4K
$658.4K – $877.8K
NOI $52,670 @ 7.0% cap · market cap 6.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,256
Businesses Nearby
Explore this area
Business Placement
Demographics for 85006, AZ
23,797
Population
10,607
Households
2.2
Avg Household Size
34
Median Age
27%
College-Educated
78%
High-School Grad
4.0 sq mi
ZIP Area
5,949
Density / Sq Mi
$60,742
Median Household Income
$39,899
Median Earnings
$1,168
Median Rent
$376,600
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?
Quadplex - Value-add four-unit property in a strong Phoenix rental submarket.
Where is this quadplex located?
The property is located at 1318 E CULVER Street Phoenix, AZ.
What is the asking price?
The asking price for this property is $766,500.
What are key features of this property?
This property features: Value‑add investment opportunity in a strong Phoenix rental submarket.; Mix of renovated units with potential for increased rental income.; Proforma based on conservative market rent of $1200 per unit.
