Top-Floor Residential Income
For Sale
$485,000
215 E MCKINLEY Street 406, Phoenix, AZ 85004
Tenant-occupied residence with a loft, private balcony, and reserved underground parking.
Property Size1,418 SF
Days on Market110
Property Features for 215 E MCKINLEY Street 406
General Information
Standard status
Active
Size
1,418 SF
Total Parking Spaces
1
Property subtype
Apartment
Units
Unit Mix
1 x 1BR+loft/1.5BA
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$3,498
Amenities
private balcony
shared terrace
in-unit washer and dryer
Building Details
Building Size
1,418 SF
Year Built
2007
Tenancy
Single
Listing Agency:
Keller Williams Arizona Realty
Listed By:
Miriam Heath
(323) 899-9480
Source:
Alexiabertsatos
Added: Jun 1
Changed: Sep 12
Last Checked: Sep 16 at 11:56PM
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 Keller Williams Arizona Realty
Investment Insights
Based on property information with market context.
Unit 405 is a tenant-occupied residential income property in a 2007-built downtown Phoenix residence. The top-floor layout includes 1 bedroom, a loft or bonus room, and 1.5 baths. Interior improvements include luxury vinyl plank and tile flooring, granite countertops, and updated cabinetry. Kitchen appliances convey, and the unit also has an in-unit washer and dryer.
Outdoor features include a private balcony, access to a shared terrace, and city views from the 4th floor. The property includes one reserved underground garage parking space. Its downtown Phoenix setting places dining, shopping, and nightlife within walking distance, providing an urban residential environment for occupants.
Outdoor features include a private balcony, access to a shared terrace, and city views from the 4th floor. The property includes one reserved underground garage parking space. Its downtown Phoenix setting places dining, shopping, and nightlife within walking distance, providing an urban residential environment for occupants.
Key Highlights
- 1‑bedroom residence with loft or bonus room and 1.5 baths
- Top‑floor unit with city views from the 4th floor
- Private balcony plus access to a shared terrace
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
$16,539
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
3.41%
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%
$330,780
$330.8K
Cap Rate 7%
$236,271
$236.3K
Cap Rate 9%
$183,767
$183.8K
Market Conditions
NOI Build-Up for 1,418 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
$32.0K $22.56/SF
− Vacancy
−$1.9K −$1.35/SF
EGI
$30.1K $21.21/SF
− OpEx
−$13.5K −$9.54/SF
NOI
$16.5K $11.66/SF
Area
Phoenix, AZ
Vacancy
6.00%
Lease Rate
$22.56 /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%
$330,780
Cap Rate 7%
$236,271
Cap Rate 9%
$183,767
Alternative Uses
Best Use
Apartment 5plus
$236.3K
$206.7K – $275.7K
NOI $16,539 @ 7.0% cap · market cap 3.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$429.5K
$375.8K – $501.1K
NOI $30,067 @ 7.0% cap · market cap 6.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Residential units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
5,425
Businesses Nearby
Explore this area
Business Placement
Demographics for 85004, AZ
8,833
Population
6,455
Households
1.4
Avg Household Size
32
Median Age
59%
College-Educated
90%
High-School Grad
2.1 sq mi
ZIP Area
4,206
Density / Sq Mi
$71,250
Median Household Income
$46,376
Median Earnings
$1,759
Median Rent
$365,500
Median Home Value
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Frequently Asked Questions
What type of property is this?
Residential income property - Tenant-occupied residence with a loft, private balcony, and reserved underground parking.
Where is this residential income property located?
The property is located at 215 E MCKINLEY Street 406 Phoenix, AZ.
What is the asking price?
The asking price for this property is $485,000.
What are key features of this property?
This property features: 1‑bedroom residence with loft or bonus room and 1.5 baths; Top‑floor unit with city views from the 4th floor; Private balcony plus access to a shared terrace
