Grandfathered Phoenix Adult Club
2438 E McDowell Rd Phoenix, AZ 85008
2438 E McDowell Rd, Phoenix, AZ, 85008
Contact for pricing
For Sale
Contact for pricing
Unfinished adult club with grandfathered license in a busy area.
Property Size4,100 SF
Price / SF$195.12
Days on Market2666
Property Features for 2438 E McDowell Rd
General Information
- Standard status
- Active
- Size
- 4,100 SF
- Property subtype
- Retail, Hospitality, Special Purpose
Listing Agency
HWH Properties
Listed by
H Winston Hines · License #SC 13801
Source
Crexi
Added: Apr 4, 2019 Updated: Jul 10 at 3:42 pm Checked: Jul 19 at 5:45 am
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
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.
Local Financial Insights For Specialty Retail
Simulate Cap Rate and NOI
NOI Build-Up
- 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.
| Component | $ | $/SF |
|---|---|---|
| Gross rent | $88.6k | $21.60 |
| − Vacancy | −$7.1k | −$1.73 |
| EGI | $81.5k | $19.87 |
| − OpEx | −$20.4k | −$4.97 |
| NOI | $61.1k | $14.90 |
4,100 SF · lease $21.60/SF/yr · vacancy 8.00% · expense 25.00%
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 local authorities.
Property Analytics
Property Profile
Location Intelligence
Current Use by Public Records
Premier Restaurant Supply ...
Big Box & Wholesale Store
Similar For Sale Nearby
Similar Off Market Nearby
- QuikTrip — 1420 N 24th St, Phoenix, AZ 85008
- Rise Distilling Co. — 1934 E McDowell Rd, Phoenix, AZ 85006
- Wren House Brewing Company — 2125 N 24th St, Phoenix, AZ 85008
FAQs
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.
