Renovated Residential Income
For Sale
$324,900
16540 E GUNSIGHT Drive 203, Fountain Hills, AZ 85268
Updated residence with refreshed interiors, remodeled kitchen, and renovated bathrooms near shopping, dining, recreation, and Fountain Park.
Property Size1,010 SF
Days on Market9
Property Features for 16540 E GUNSIGHT Drive 203
General Information
Standard status
Active
Size
1,010 SF
Property subtype
Apartment
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$575
Building Details
Building Size
1,010 SF
Year Built
1988
Listing Agency:
Avenew Realty Inc
Listed By:
Trisha A. Carroll · License #BR639316000
(480) 330-4019
Source:
Jcluxuryresidential
Added: Aug 29
Changed: Sep 1
Last Checked: Sep 5 at 8:33AM
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 Avenew Realty Inc
Investment Insights
Based on property information with market context.
This residential income property was built in 1988 and has undergone extensive interior updates. Improvements include luxury vinyl plank flooring, fresh paint, new baseboards, updated lighting and hardware, ceiling fans, replacement outlets and switches, and GFCI upgrades. A redesigned kitchen features white shaker cabinets, quartz surfaces, a stainless steel undermount sink, recessed LED lighting, and stainless steel appliances. Both bathrooms have new vanities, framed mirrors, faucets, lighting, shower fixtures, and refinished tub and shower surrounds. The residence also includes a new front entry door with an electronic lock.
The property is located in Fountain Hills near shopping, dining, recreation, and Fountain Park. Its combination of refreshed finishes, updated kitchen and bath areas, and established location provides a practical residential income offering.
The property is located in Fountain Hills near shopping, dining, recreation, and Fountain Park. Its combination of refreshed finishes, updated kitchen and bath areas, and established location provides a practical residential income offering.
Key Highlights
- Extensively updated residential income property built in 1988
- Remodeled kitchen with white shaker cabinetry, quartz surfaces, and stainless steel appliances
- Both bathrooms feature new vanities, fixtures, lighting, and resurfaced tub/shower surrounds
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
$11,399
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
3.51%
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%
$227,980
$228.0K
Cap Rate 7%
$162,843
$162.8K
Cap Rate 9%
$126,656
$126.7K
Market Conditions
NOI Build-Up for 1,010 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
$21.8K $21.60/SF
− Vacancy
−$1.1K −$1.08/SF
EGI
$20.7K $20.52/SF
− OpEx
−$9.3K −$9.23/SF
NOI
$11.4K $11.29/SF
Area
Maricopa County, AZ
Vacancy
5.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
45.00%
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%
$227,980
Cap Rate 7%
$162,843
Cap Rate 9%
$126,656
Alternative Uses
Best Use
Apartment 5plus
$162.8K
$142.5K – $190.0K
NOI $11,399 @ 7.0% cap · market cap 3.51%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$312.4K
$273.4K – $364.5K
NOI $21,869 @ 7.0% cap · market cap 6.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
1,289
Businesses Nearby
Explore this area
Business Placement
Demographics for 85268, AZ
24,031
Population
13,429
Households
1.8
Avg Household Size
61
Median Age
50%
College-Educated
97%
High-School Grad
20.5 sq mi
ZIP Area
1,172
Density / Sq Mi
$105,288
Median Household Income
$55,054
Median Earnings
$1,781
Median Rent
$576,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Updated residence with refreshed interiors, remodeled kitchen, and renovated bathrooms near shopping, dining, recreation, and Fountain Park.
Where is this residential income property located?
The property is located at 16540 E GUNSIGHT Drive 203 Fountain Hills, AZ.
What is the asking price?
The asking price for this property is $324,900.
What are key features of this property?
This property features: Extensively updated residential income property built in 1988; Remodeled kitchen with white shaker cabinetry, quartz surfaces, and stainless steel appliances; Both bathrooms feature new vanities, fixtures, lighting, and resurfaced tub/shower surrounds
