Downtown Prescott Investment
For Sale
Contact for pricing
141 S McCormick St, Prescott, AZ 86303
Fully occupied mixed-use property near Courthouse Square.
Property Size27,690 SF
Price / SF$162.51
Days on Market364
Property Features for 141 S McCormick St
General Information
Standard status
Active
Size
27,690 SF
Class
B
Property subtype
Hospitality, Office, Retail
Zoning
DTB
Listing Agency:
Arizona Commercial Real Estate
(480) 309-1089
Listed By:
Matthew Fish · License #BR626105000
Source:
Crexi
Added: Aug 20, 2025
Changed: Aug 14
Last Checked: Aug 14 at 6:06AM
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 Arizona Commercial Real Estate
Investment Insights
Based on property information with market context.
This downtown Prescott investment presents a prime opportunity for investors seeking steady cash flow and a diverse tenant mix. The property is 100% occupied and located just two blocks from the iconic Courthouse Square, situated in a highly walkable, demand-driven downtown business district that attracts residents and visitors year-round. The property is comprised of 42 units, covered private parking, and a restaurant building, spread across five parcels and two well-maintained buildings. There are 72 grade-level parking spaces. Historically low vacancy rates demonstrate the property's resilience and enduring appeal. One of Prescott's most popular dining destinations enhances the site, drawing consistent foot traffic and contributing to a robust tenant mix. The multi-tenant office component already houses a range of professional services including legal, financial, medical, and development services, ensuring diversified income streams and reduced risk. The property offers multiple upside opportunities including rental rate optimization, rightsizing expenses, opportunities for redevelopment or reconfiguration to maximize unit counts, and potential for capital improvements that enhance property value, commanding higher rents, and tenant appeal. The downtown location ensures strong market demand with a growing population, thriving tourism, and a burgeoning local economy. The property size is 27690 square feet.
Key Highlights
- Prime downtown Prescott location, just two blocks from Courthouse Square.
- 100% occupied with a diverse tenant mix, including a popular restaurant, ensuring steady cash flow.
- 42 units across five parcels and two well‑maintained buildings.
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
$373,815
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
8.31%
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%
$7,476,300
$7.5M
Cap Rate 7%
$5,340,214
$5.3M
Cap Rate 9%
$4,153,500
$4.2M
Market Conditions
NOI Build-Up for 27,690 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
$664.6K $24.00/SF
− Vacancy
−$66.5K −$2.40/SF
EGI
$598.1K $21.60/SF
− OpEx
−$224.3K −$8.10/SF
NOI
$373.8K $13.50/SF
Area
Yavapai County, AZ
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$7,476,300
Cap Rate 7%
$5,340,214
Cap Rate 9%
$4,153,500
Alternative Uses
Best Use
Mixed Use
$5.34M
$4.67M – $6.23M
NOI $373,815 @ 7.0% cap · market cap 8.31%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$9.28M
$8.12M – $10.82M
NOI $649,325 @ 7.0% cap · market cap 14.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,781
Businesses Nearby
Explore this area
Business Placement
Demographics for 86303, AZ
18,201
Population
12,255
Households
1.5
Avg Household Size
61
Median Age
41%
College-Educated
96%
High-School Grad
107.2 sq mi
ZIP Area
170
Density / Sq Mi
$68,656
Median Household Income
$44,428
Median Earnings
$1,309
Median Rent
$502,400
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Fully occupied mixed-use property near Courthouse Square.
Where is this mixed-use property located?
The property is located at 141 S McCormick St Prescott, AZ.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Prime downtown Prescott location, just two blocks from Courthouse Square.; 100% occupied with a diverse tenant mix, including a popular restaurant, ensuring steady cash flow.; 42 units across five parcels and two well‑maintained buildings.
