Industrial Flex
For Sale
$2,700,000
258260 258-260 Justin Dr, Cottonwood, AZ 86326
The building combines office areas, warehouse space, conference rooms, and multiple restrooms.
Property Size21,124 SF
Lot Size1.51 Acres
Price / SF$127.81
Days on Market18
Property Features for 258260 258-260 Justin Dr
General Information
Standard status
Active
Size
21,124 SF
Total Parking Spaces
70
Lot size
1.51 Acres
Zoning
I-2
Amenities
Conference rooms
Building Details
Year Built
1993
Buildings
1
Building Size
21,124 SF
Listing Agency:
Coldwell Banker Northland
(928) 634-9536
Listed By:
Crista Ballard
Source:
Ryhometeam
Added: Aug 12
Changed: Aug 28
Last Checked: Aug 28 at 7:39AM
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 Coldwell Banker Northland
Investment Insights
Based on property information with market context.
This flex property in Mingus Industrial Park combines approximately equal office and warehouse areas within a 1993 building. The interior includes conference rooms, multiple restrooms, and a mix of smaller and larger offices. Its prior use as a vitamin manufacturing and distribution center provides additional context for the existing configuration.
The property is situated on 1.51 acres and includes 70 parking spaces. I-2 zoning is in place, and the address is in Cottonwood, Arizona. The combination of office, warehouse, and meeting areas creates a varied commercial layout within a single industrial property.
The property is situated on 1.51 acres and includes 70 parking spaces. I-2 zoning is in place, and the address is in Cottonwood, Arizona. The combination of office, warehouse, and meeting areas creates a varied commercial layout within a single industrial property.
Key Highlights
- I‑2 zoned flex property in Mingus Industrial Park
- 1.51‑acre site in Cottonwood, AZ
- Approximately half office space and half warehouse
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
$184,111
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
6.82%
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%
$3,682,220
$3.7M
Cap Rate 7%
$2,630,157
$2.6M
Cap Rate 9%
$2,045,678
$2.0M
Market Conditions
NOI Build-Up for 21,125 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
$296.6K $14.04/SF
− Vacancy
−$13.3K −$0.63/SF
EGI
$283.2K $13.41/SF
− OpEx
−$99.1K −$4.69/SF
NOI
$184.1K $8.72/SF
Area
Yavapai County, AZ
Vacancy
4.50%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
35.00%
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%
$3,682,220
Cap Rate 7%
$2,630,157
Cap Rate 9%
$2,045,678
Alternative Uses
Best Use
Warehouse
$7.08M
$6.19M – $8.26M
NOI $495,377 @ 7.0% cap · market cap 18.35%
Second Best
Industrial
$5.83M
$5.10M – $6.80M
NOI $407,958 @ 7.0% cap · market cap 15.11%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
784
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 86326, AZ
24,465
Population
12,243
Households
2
Avg Household Size
49
Median Age
25%
College-Educated
91%
High-School Grad
45.5 sq mi
ZIP Area
538
Density / Sq Mi
$58,250
Median Household Income
$36,479
Median Earnings
$1,102
Median Rent
$312,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - The building combines office areas, warehouse space, conference rooms, and multiple restrooms.
Where is this flex space located?
The property is located at 258260 258-260 Justin Dr Cottonwood, AZ.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: I‑2 zoned flex property in Mingus Industrial Park; 1.51‑acre site in Cottonwood, AZ; Approximately half office space and half warehouse
