Corner Residential Income
For Sale
$275,000
1905 E UNIVERSITY Drive 124, Tempe, AZ 85288
Vacant two-bedroom, two-bath unit with included appliances and access to two community pools.
Property Size1,084 SF
Days on Market11
Property Features for 1905 E UNIVERSITY Drive 124
General Information
Standard status
Active
Size
1,084 SF
Property subtype
Apartment
Site & Location
Highway Access
Yes
Utilities to Site
Yes
Units
Unit Mix
1 x 2BR/2BA
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$1,400
Amenities
community pools
Building Details
Building Size
1,084 SF
Year Built
1984
Listing Agency:
FDR Real Estate
(602) 686-1697
Listed By:
Michael Ashley
(602) 686-1697
Source:
Gillettegroupaz
Added: Aug 12
Changed: Aug 21
Last Checked: Aug 21 at 10:17AM
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 FDR Real Estate
Investment Insights
Based on property information with market context.
This 1984 residential income property is a vacant, lower-level corner unit with two bedrooms and two bathrooms. The interior has no carpet and includes a washer, dryer, and refrigerator. Recent redecorating provides an updated presentation, while the unit’s position within the community places it away from University-related noise.
Community amenities include two swimming pools and established landscaping with mature trees and maintained grass. HOA services cover water, sewer, and trash. The property is located near ASU, the 101 freeway, and Tempe Marketplace, providing access to nearby education, transportation, and shopping destinations.
Community amenities include two swimming pools and established landscaping with mature trees and maintained grass. HOA services cover water, sewer, and trash. The property is located near ASU, the 101 freeway, and Tempe Marketplace, providing access to nearby education, transportation, and shopping destinations.
Key Highlights
- Two‑bedroom, two‑bath lower‑level corner unit
- Vacant unit with no carpet
- Washer, dryer, and refrigerator included
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
$14,692
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
5.34%
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%
$293,840
$293.8K
Cap Rate 7%
$209,886
$209.9K
Cap Rate 9%
$163,244
$163.2K
Market Conditions
NOI Build-Up for 1,084 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
$28.4K $26.16/SF
− Vacancy
−$1.6K −$1.52/SF
EGI
$26.7K $24.64/SF
− OpEx
−$12.0K −$11.09/SF
NOI
$14.7K $13.55/SF
Area
Tempe, AZ
Vacancy
5.80%
Lease Rate
$26.16 /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%
$293,840
Cap Rate 7%
$209,886
Cap Rate 9%
$163,244
Alternative Uses
Best Use
Apartment 5plus
$209.9K
$183.7K – $244.9K
NOI $14,692 @ 7.0% cap · market cap 5.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$340.9K
$298.3K – $397.7K
NOI $23,861 @ 7.0% cap · market cap 8.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,627
Businesses Nearby
Explore this area
Business Placement
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Vacant two-bedroom, two-bath unit with included appliances and access to two community pools.
Where is this residential income property located?
The property is located at 1905 E UNIVERSITY Drive 124 Tempe, AZ.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: Two‑bedroom, two‑bath lower‑level corner unit; Vacant unit with no carpet; Washer, dryer, and refrigerator included
