Infill Office Redevelopment
For Sale
$3,330,000
1405 N 1ST Street, Phoenix, AZ 85004
Office improvements sit on four combined parcels near Downtown Phoenix, with zoning that supports redevelopment height.
Property Size7,450 SF
Lot Size0.64 Acres
Price / SF$446.98
Days on Market75
Property Features for 1405 N 1ST Street
General Information
Standard status
Active
Size
7,450 SF
Lot size
0.64 Acres
Property subtype
COMMERCIAL
Zoning
DTC-TWNPK
Taxes and HOA fees
Annual Taxes
$15,535
Building Details
Building Size
7,450 SF
Year Built
1975
Listing Agency:
R.O.I. Properties
Listed By:
Beth Jo Zeitzer · License #BR044331000
(602) 319-1326
Source:
Alexiabertsatos
Added: Jun 23
Changed: Aug 26
Last Checked: Sep 4 at 12:40PM
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 R.O.I. Properties
Investment Insights
Based on property information with market context.
1405 N 1st Street is an infill office redevelopment site featuring approximately 7,450 square feet of office improvements across four parcels (APNs 111-35-085, 111-35-086, 111-35-100, and 111-35-098). The total land area is approximately 0.64 acres, providing a defined footprint for future redevelopment planning while retaining existing improvements for evaluation.
The property is positioned just north of Downtown Phoenix near the intersection of 1st Street and McDowell Road, within the Downtown Phoenix Overlay District. Zoning is DTC-TWNPK, which allows up to 90 feet of building height and up to 125 dwelling units per acre, offering flexibility for redevelopment under current entitlements.
The offering’s combination of existing office improvements and multi-parcel structure may appeal to buyers looking to consolidate parcels and evaluate redevelopment options in a highly active urban growth corridor.
The property is positioned just north of Downtown Phoenix near the intersection of 1st Street and McDowell Road, within the Downtown Phoenix Overlay District. Zoning is DTC-TWNPK, which allows up to 90 feet of building height and up to 125 dwelling units per acre, offering flexibility for redevelopment under current entitlements.
The offering’s combination of existing office improvements and multi-parcel structure may appeal to buyers looking to consolidate parcels and evaluate redevelopment options in a highly active urban growth corridor.
Key Highlights
- Office improvements at 1405 N 1st Street positioned just north of Downtown Phoenix near 1st St and McDowell Rd
- Approximately 7,450 SF of office improvements across four parcels
- Total land area approximately 0.64 acres (four combined parcels)
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
$127,534
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
3.83%
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%
$2,550,680
$2.6M
Cap Rate 7%
$1,821,914
$1.8M
Cap Rate 9%
$1,417,044
$1.4M
Market Conditions
NOI Build-Up for 7,450 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
$228.9K $30.72/SF
− Vacancy
−$58.8K −$7.90/SF
EGI
$170.0K $22.82/SF
− OpEx
−$42.5K −$5.71/SF
NOI
$127.5K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /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%
$2,550,680
Cap Rate 7%
$1,821,914
Cap Rate 9%
$1,417,044
Alternative Uses
Best Use
Office B
$1.82M
$1.59M – $2.13M
NOI $127,534 @ 7.0% cap · market cap 3.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.26M
$1.97M – $2.63M
NOI $157,967 @ 7.0% cap · market cap 4.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,266
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 Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office improvements sit on four combined parcels near Downtown Phoenix, with zoning that supports redevelopment height.
Where is this office building located?
The property is located at 1405 N 1ST Street Phoenix, AZ.
What is the asking price?
The asking price for this property is $3,330,000.
What are key features of this property?
This property features: Office improvements at 1405 N 1st Street positioned just north of Downtown Phoenix near 1st St and McDowell Rd; Approximately 7,450 SF of office improvements across four parcels; Total land area approximately 0.64 acres (four combined parcels)
