12-Unit Apartment
For Sale
$3,750,000
214 N Arizona Ave, Prescott, AZ 86301
Fully occupied multifamily asset with an office and modified NNN lease structure in Downtown Prescott.
Property Size11,600 SF
Lot Size0.64 Acres
Price / SF$323.28
Days on Market38
Property Features for 214 N Arizona Ave
General Information
Standard status
Active
Size
11,600 SF
Lot size
0.64 Acres
Property subtype
Multi-Family
Zoning
MF-M
Occupancy
100%
Financials
Asking Price
$3,750,000
Gross Income
$249,600
Additional Details
Multifamily Units
12
Building Details
Year Built
1992
Tenancy
Single
Listing Agency:
Commercial Advisors of Prescott
(928) 925-2023
Listed By:
Nick Malouff · License #SA670765000
Source:
Legacyren
Added: Jul 25
Changed: Aug 30
Last Checked: Aug 30 at 8:38PM
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 Commercial Advisors of Prescott
Investment Insights
Based on property information with market context.
This multifamily portfolio includes 12 apartment units and an office across three parcels totaling approximately 0.64 acres. The improvements comprise approximately 11,600 square feet and were built in 1992. The property is fully leased to a licensed treatment operator under a modified NNN lease structure, with the tenant reimbursing operating expenses and paying property taxes directly.
Located in Downtown Prescott at 214 N Arizona Ave, the property is zoned MF-M. The zoning supports continued multifamily use and provides flexibility for redevelopment, as stated in the property information. The current configuration combines residential units with office space within an established multifamily asset.
Located in Downtown Prescott at 214 N Arizona Ave, the property is zoned MF-M. The zoning supports continued multifamily use and provides flexibility for redevelopment, as stated in the property information. The current configuration combines residential units with office space within an established multifamily asset.
Key Highlights
- 12 units plus office across three parcels
- Approximately 11,600 SF of improvements on approximately 0.64 acres
- 100% leased to a licensed treatment operator
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
$123,644
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
3.30%
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%
$2,472,880
$2.5M
Cap Rate 7%
$1,766,343
$1.8M
Cap Rate 9%
$1,373,822
$1.4M
Market Conditions
NOI Build-Up for 11,600 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
$236.6K $20.40/SF
− Vacancy
−$11.8K −$1.02/SF
EGI
$224.8K $19.38/SF
− OpEx
−$101.2K −$8.72/SF
NOI
$123.6K $10.66/SF
Area
Yavapai County, AZ
Vacancy
5.00%
Lease Rate
$20.40 /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%
$2,472,880
Cap Rate 7%
$1,766,343
Cap Rate 9%
$1,373,822
Alternative Uses
Best Use
Apartment 5plus
$1.77M
$1.55M – $2.06M
NOI $123,644 @ 7.0% cap · market cap 3.30%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$3.89M
$3.40M – $4.53M
NOI $272,018 @ 7.0% cap · market cap 7.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,326
Businesses Nearby
Explore this area
Business Placement
Demographics for 86301, AZ
25,115
Population
13,863
Households
1.8
Avg Household Size
57
Median Age
37%
College-Educated
96%
High-School Grad
33.4 sq mi
ZIP Area
752
Density / Sq Mi
$71,962
Median Household Income
$33,989
Median Earnings
$1,580
Median Rent
$495,100
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Fully occupied multifamily asset with an office and modified NNN lease structure in Downtown Prescott.
Where is this apartment building located?
The property is located at 214 N Arizona Ave Prescott, AZ.
What is the asking price?
The asking price for this property is $3,750,000.
What are key features of this property?
This property features: 12 units plus office across three parcels; Approximately 11,600 SF of improvements on approximately 0.64 acres; 100% leased to a licensed treatment operator
