Grandfathered Phoenix Adult Club
For Sale
Contact for pricing
2438 E McDowell Rd, Phoenix, AZ 85008
Unfinished adult club with grandfathered license in a busy area.
Property Size4,100 SF
Price / SF$195.12
Days on Market2761
Property Features for 2438 E McDowell Rd
General Information
Standard status
Active
Size
4,100 SF
Total Parking Spaces
50
Property subtype
Retail, Hospitality, Special Purpose
Lease Type
NNN
Site & Location
Neighborhood
Camelback East
Listing Agency:
HWH Properties
Listed By:
H Winston Hines · License #SC 13801
(864) 580-3826
Source:
Crexi
Added: Apr 4, 2019
Changed: Oct 10
Last Checked: Oct 23 at 6:13AM
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 HWH Properties
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Investment Insights
Based on property information with market context.
Located just west of Scottsdale in Phoenix, this unfinished adult club is available for sale in a busy commercial area near a highway. The property includes a Series 6 license and is grandfathered in the location. The sale includes a list of furniture, fixtures, and equipment (FFE). The property is approximately 4100 square feet with the potential to expand for kitchen space next door. The location is on the east side of Phoenix, near Scottsdale, in the Arcadia area. The Series 6 license covers liquor, beer, and wine. The property is zoned C2, and the strip club is grandfathered in the city of Phoenix. The club has been partially remodeled recently. HVAC, bathrooms, and electrical systems are finished. The club could accommodate 20-40 entertainers. It is located a little over a mile from two major highways and next door to a Pep Boys automotive shop. The intersection of McDowell and 24th Street is visible from the front of the club. The Biltmore/Arcadia area is a few miles away. There are approximately 60 parking spots available between the front and back of the building. The lease is locked in at approximately $1.00 per foot until 2038, with 3% annual increases. The property is intended for use as an adult club.
Key Highlights
- Rare Series 6 Liquor License: One of only 27 in Arizona, covering liquor, beer, and wine.
- Grandfathered Zoning: Existing strip club use is grandfathered in the city of Phoenix, AZ.
- Below Market Lease Rate: Locked‑in lease at approximately $1.00 per square foot until 2038 with 3% annual increases.
Financial Insights
Estimated NOI and Cap Rate
NOI / Yr
$61,106
Cap Rate
7.64%
Suggested Prices Based on Cap Rates
Cap Rate 5%
$1,222,120
$1.2M
Cap Rate 7%
$872,943
$872.9K
Cap Rate 9%
$678,956
$679.0K
Market Conditions
NOI Build-Up for 4,100 SF
Gross rent
$88.6K $21.60/SF
− Vacancy
−$7.1K −$1.73/SF
EGI
$81.5K $19.87/SF
− OpEx
−$20.4K −$4.97/SF
NOI
$61.1K $14.90/SF
Area
ZIP 85008
Vacancy
8.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap Rate 5%
$1,222,120
Cap Rate 7%
$872,943
Cap Rate 9%
$678,956
Alternative Uses
Best Use
Specialty Retail
$872.9K
$763.8K – $1.02M
NOI $61,106 @ 7.0% cap · market cap 7.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.27M
$1.11M – $1.48M
NOI $88,695 @ 7.0% cap · market cap 11.09%
Zoning and permitted uses should be independently verified with authorities.
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Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,224
Businesses Nearby
Under-served
Demand for This Use
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Business Placement
Demographics for 85008, AZ
59,047
Population
24,508
Households
2.4
Avg Household Size
30
Median Age
24%
College-Educated
75%
High-School Grad
10.2 sq mi
ZIP Area
5,789
Density / Sq Mi
$61,369
Median Household Income
$36,969
Median Earnings
$1,300
Median Rent
$323,600
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Similar Off Market Nearby
- Rise Distilling Co. — 1934 E McDowell Rd, Phoenix, AZ 85006
- QuikTrip — 1420 N 24th St, Phoenix, AZ 85008
- Wren House Brewing Company — 2125 N 24th St, Phoenix, AZ 85008
Frequently Asked Questions
What type of property is this?
Night club - Unfinished adult club with grandfathered license in a busy area.
Where is this night club located?
The property is located at 2438 E McDowell Rd Phoenix, AZ.
What is the asking price?
The asking price for this property is $800,000.
What are key features of this property?
This property features: Rare Series 6 Liquor License: One of only 27 in Arizona, covering liquor, beer, and wine.; Grandfathered Zoning: Existing strip club use is grandfathered in the city of Phoenix, AZ.; Below Market Lease Rate: Locked‑in lease at approximately $1.00 per square foot until 2038 with 3% annual increases.
