5-Unit Historic Apartment
New
For Sale
$750,000
239 S 5th Avenue, Tucson, AZ 85701
Commercial Sale, Tucson, AZ
Property Size2,326 SF
Lot Size0.25 Acres
Price / SF$322.44
Days on Market4
Property Features for 239 S 5th Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
Tucson - HO3
Lot features
Corner Lot
Directions
Downtown Tucson: from Broadway Blvd, south on S 5th Ave to property near E 13th St.
Subdivision
Central
Standard status
Active
APN
117-06-2650
Size
2,326 SF
Lot size
0.25 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
TUCSON W110' S34' LOT 10 & W110' LOT 11 BLK 100
Tax Annual Amount
4042
Legal Description
TUCSON W110' S34' LOT 10 & W110' LOT 11 BLK 100
Utilities
Heating system
Heat Pump (Heating)
Cooling system
Zoned
Water source
Public
Building Details
Year built
1896
Building materials
Masonry Stucco
Roof type
Shingle
Listing Agency:
Keller Williams Southern Arizona · Keller Williams Realty
(520) 615-8400
Listed By:
Daniel C Caldwell
(520) 777-1698
Added: Sep 29
Changed: Oct 1
Last Checked: Oct 2 at 8:06AM
MLS# 22623857
Copyright © 2026 Multiple Listing Service of Southern Arizona. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This five-unit apartment property in Tucson’s Armory Park Historic District comprises four one-bedroom, one-bathroom residences and one studio. Constructed in 1896, it underwent renovations in 2017–2018, including replacement of water lines, a water heater, gas piping, and an electric meter. The property is fully rented and occupies a 0.25-acre parcel. Zoning is Tucson - HO3.
Downtown Tucson dining, arts, and entertainment are within walking distance. The five residences have separate addresses across two streets, while the property is held on one parcel.
Downtown Tucson dining, arts, and entertainment are within walking distance. The five residences have separate addresses across two streets, while the property is held on one parcel.
Key Highlights
- Five apartments: four 1‑bedroom/1‑bath units and one studio
- Fully rented; tenant‑occupied property
- Located in Tucson’s Armory Park Historic District
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
$23,900
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
3.19%
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%
$478,000
$478.0K
Cap Rate 7%
$341,429
$341.4K
Cap Rate 9%
$265,556
$265.6K
Market Conditions
NOI Build-Up for 2,326 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
$47.5K $20.40/SF
− Vacancy
−$4.0K −$1.72/SF
EGI
$43.5K $18.68/SF
− OpEx
−$19.6K −$8.41/SF
NOI
$23.9K $10.28/SF
Area
Tucson, AZ
Vacancy
8.42%
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%
$478,000
Cap Rate 7%
$341,429
Cap Rate 9%
$265,556
Alternative Uses
Best Use
Apartment 5plus
$341.4K
$298.8K – $398.3K
NOI $23,900 @ 7.0% cap · market cap 3.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$604.2K
$528.7K – $705.0K
NOI $42,297 @ 7.0% cap · market cap 5.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
5
Residential units
100%
Occupancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
3,354
Businesses Nearby
Explore this area
Business Placement
Demographics for 85701, AZ
5,132
Population
3,631
Households
1.4
Avg Household Size
37
Median Age
57%
College-Educated
91%
High-School Grad
1.5 sq mi
ZIP Area
3,421
Density / Sq Mi
$52,672
Median Household Income
$43,762
Median Earnings
$1,183
Median Rent
$451,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
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 - Four one-bedroom apartments and a studio are currently rented in this Tucson property.
Where is this apartment building located?
The property is located at 239 S 5th Avenue Tucson, AZ.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Five apartments: four 1‑bedroom/1‑bath units and one studio; Fully rented; tenant‑occupied property; Located in Tucson’s Armory Park Historic District
