Renovated Three-Level Office
New
For Sale
$3,700,000
2727 N 3rd St., Phoenix, AZ 85004
Renovated office interiors, elevator service, and below-grade parking support flexible owner-user occupancy.
Property Size12,502 SF
Price / SF$295.95
Days on Market2
Property Features for 2727 N 3rd St.
General Information
Standard status
Active
Size
12,502 SF
Class
B
Total Parking Spaces
47
Elevators
Yes
Property subtype
Office
Occupancy
100%
Site & Location
Highway Access
Yes
Public Transit
Yes
Building Details
Building Size
12,502 SF
Year Built
1985
Year Renovated
2018
Buildings
1
Stories
3
Tenancy
Single
Owner Occupied
Yes
Abandoned
No
Listing Agency:
SVN | Desert Commercial Advisors
(480) 220-2674
Listed By:
Justin Horwitz, SIOR · License #AZ #SA674245000
(480) 220-2674
Source:
Svndesertcommercial
Added: Aug 15
Changed: Aug 16
Last Checked: Aug 16 at 5:32AM
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 SVN | Desert Commercial Advisors
Investment Insights
Based on property information with market context.
The Citadel is a 12,502 SF office building arranged across three levels, including a below-grade parking garage and two levels of renovated office space. Elevator access serves the building, while the interior includes modern finishes and a functional layout. Renovations completed in 2018 included a new roof, replacement of multiple AC units, and comprehensive interior improvements.
The property is currently fully occupied by the Seller, with flexibility for the Seller to vacate at closing or retain and lease back a portion of the building. An owner-user could occupy from 1,583 SF to 8,247 SF while leasing the balance. The building is positioned at 3rd St. and Thomas in Midtown Phoenix, with access to light rail and the I-10/51 Fwys. Parking includes 29 Total Parking Spaces, plus 18 stalls along 3rd St. in front of the building.
The property is currently fully occupied by the Seller, with flexibility for the Seller to vacate at closing or retain and lease back a portion of the building. An owner-user could occupy from 1,583 SF to 8,247 SF while leasing the balance. The building is positioned at 3rd St. and Thomas in Midtown Phoenix, with access to light rail and the I-10/51 Fwys. Parking includes 29 Total Parking Spaces, plus 18 stalls along 3rd St. in front of the building.
Key Highlights
- 12,502 SF office building across three levels
- Two renovated office levels and a below‑grade parking garage
- 2018 renovation included a new roof, multiple AC unit replacements, and interior upgrades
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
$214,018
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
5.78%
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%
$4,280,360
$4.3M
Cap Rate 7%
$3,057,400
$3.1M
Cap Rate 9%
$2,377,978
$2.4M
Market Conditions
NOI Build-Up for 12,502 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
$384.1K $30.72/SF
− Vacancy
−$98.7K −$7.90/SF
EGI
$285.4K $22.82/SF
− OpEx
−$71.3K −$5.71/SF
NOI
$214.0K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /SF/Yr
Expense Ratio
25.00%
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%
$4,280,360
Cap Rate 7%
$3,057,400
Cap Rate 9%
$2,377,978
Alternative Uses
Best Use
Office B
$3.06M
$2.68M – $3.57M
NOI $214,018 @ 7.0% cap · market cap 5.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.79M
$3.31M – $4.42M
NOI $265,087 @ 7.0% cap · market cap 7.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
5,375
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
Market
Vacancy Rate% for Office in Phoenix, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Renovated office interiors, elevator service, and below-grade parking support flexible owner-user occupancy.
Where is this office building located?
The property is located at 2727 N 3rd St. Phoenix, AZ.
What is the asking price?
The asking price for this property is $3,700,000.
What are key features of this property?
This property features: 12,502 SF office building across three levels; Two renovated office levels and a below‑grade parking garage; 2018 renovation included a new roof, multiple AC unit replacements, and interior upgrades
