Turnkey Two-Building Medical
For Sale
$1,000,000
1423 N 16TH Street, Phoenix, AZ 85006
Two-building turnkey property with a leased barber shop and an equipped dental practice available for acquisition.
Property Size2,572 SF
Days on Market472
Property Features for 1423 N 16TH Street
General Information
Standard status
Active
Size
2,572 SF
Property subtype
COMMERCIAL
Taxes and HOA fees
Annual Taxes
$5,079
Building Details
Building Size
2,572 SF
Year Built
1948
Listing Agency:
Innovated Realty LLC
Listed By:
Shaun Sayegh · License #BR653117000
(602) 909-7897
Source:
Jcluxuryresidential
Added: May 24, 2025
Changed: Sep 4
Last Checked: Sep 7 at 6:07AM
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 Innovated Realty LLC
Investment Insights
Based on property information with market context.
This turnkey for-sale property includes two buildings, with one leased to a barber shop. The second building is presented as a fully equipped dental practice, with an established patient base also available.
The property is located near downtown, ASU, and UAU Medical School, within an area described as seeing exciting new developments nearby.
For buyers looking for an owner-occupied or investment structure with existing operating presence, the offering provides two separate buildings with distinct current use and an equipment-ready dental practice component.
The property is located near downtown, ASU, and UAU Medical School, within an area described as seeing exciting new developments nearby.
For buyers looking for an owner-occupied or investment structure with existing operating presence, the offering provides two separate buildings with distinct current use and an equipment-ready dental practice component.
Key Highlights
- Two‑building turnkey property built in 1948
- One building is leased to a barber shop
- Second building features a fully equipped dental practice available for acquisition
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
$44,029
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
4.40%
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%
$880,580
$880.6K
Cap Rate 7%
$628,986
$629.0K
Cap Rate 9%
$489,211
$489.2K
Market Conditions
NOI Build-Up for 2,572 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
$79.0K $30.72/SF
− Vacancy
−$20.3K −$7.90/SF
EGI
$58.7K $22.82/SF
− OpEx
−$14.7K −$5.71/SF
NOI
$44.0K $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%
$880,580
Cap Rate 7%
$628,986
Cap Rate 9%
$489,211
Alternative Uses
Best Use
Office B
$629.0K
$550.4K – $733.8K
NOI $44,029 @ 7.0% cap · market cap 4.40%
Second Best
Healthcare Medical
$523.8K
$458.3K – $611.1K
NOI $36,666 @ 7.0% cap · market cap 3.67%
Theoretical Best
Office A
$779.1K
$681.7K – $908.9K
NOI $54,536 @ 7.0% cap · market cap 5.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,761
Businesses Nearby
Under-served
Demand for This Use
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 Office in Phoenix, AZ
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-building turnkey property with a leased barber shop and an equipped dental practice available for acquisition.
Where is this medical office space located?
The property is located at 1423 N 16TH Street Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Two‑building turnkey property built in 1948; One building is leased to a barber shop; Second building features a fully equipped dental practice available for acquisition
