Historic Mixed-Use
New
For Sale
Contact for pricing
32 South MacDonald, Mesa, AZ 85210
Commercial Downtown zoning supports commercial, office, retail, and mixed-use redevelopment options.
Property Size7,920 SF
Price / SF$366.04
Days on Market6
Property Features for 32 South MacDonald
General Information
Standard status
Active
Size
7,920 SF
Total Parking Spaces
16
Property subtype
Mixed Use
Zoning
Commercial Downtown (C-DT)
Investment Type
Redevelopment
Site & Location
Road Access
Yes
Public Transit
Yes
Additional Details
Opportunity Zone
Yes
Building Details
Year Built
1961
Buildings
2
Listing Agency:
ORION Investment Real Estate
(623) 533-1746
Listed By:
Garrett Hemeyer · License #AZ SA684184000
Source:
Crexi
Added: Aug 10
Changed: Aug 15
Last Checked: Aug 15 at 5:29AM
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 ORION Investment Real Estate
Investment Insights
Based on property information with market context.
This mixed-use property includes approximately 20,685 SF of existing historic structures, originally built in 1961. The buildings offer an established architectural identity and a foundation for conversion into creative office, specialty retail, or downtown residential space. Commercial Downtown (C-DT) zoning accommodates a broad range of redevelopment possibilities, including commercial, office, retail, mixed-use, and multifamily uses.
The property is located at 32 South MacDonald in Mesa’s urban core, with access to Main Street, nearby civic institutions, and light rail service. It is also situated within an Opportunity Zone. The existing structures and downtown setting provide a distinctive base for repositioning within a range of supported commercial and mixed-use formats.
The property is located at 32 South MacDonald in Mesa’s urban core, with access to Main Street, nearby civic institutions, and light rail service. It is also situated within an Opportunity Zone. The existing structures and downtown setting provide a distinctive base for repositioning within a range of supported commercial and mixed-use formats.
Key Highlights
- Approximately 20,685 SF of existing historic structures
- Commercial Downtown (C‑DT) zoning
- Originally built in 1961
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
$135,710
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
4.68%
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%
$2,714,200
$2.7M
Cap Rate 7%
$1,938,714
$1.9M
Cap Rate 9%
$1,507,889
$1.5M
Market Conditions
NOI Build-Up for 7,920 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
$229.0K $28.92/SF
− Vacancy
−$48.1K −$6.07/SF
EGI
$180.9K $22.85/SF
− OpEx
−$45.2K −$5.71/SF
NOI
$135.7K $17.14/SF
Area
Mesa, AZ
Vacancy
21.00%
Lease Rate
$28.92 /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%
$2,714,200
Cap Rate 7%
$1,938,714
Cap Rate 9%
$1,507,889
Alternative Uses
Best Use
Office B
$1.94M
$1.70M – $2.26M
NOI $135,710 @ 7.0% cap · market cap 4.68%
Second Best
Retail
$1.00M
$876.8K – $1.17M
NOI $70,140 @ 7.0% cap · market cap 2.42%
Theoretical Best
Office A
$2.17M
$1.90M – $2.53M
NOI $151,965 @ 7.0% cap · market cap 5.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,199
Businesses Nearby
Explore this area
Business Placement
Demographics for 85210, AZ
40,351
Population
16,292
Households
2.5
Avg Household Size
32
Median Age
25%
College-Educated
84%
High-School Grad
6.7 sq mi
ZIP Area
6,023
Density / Sq Mi
$59,680
Median Household Income
$38,479
Median Earnings
$1,383
Median Rent
$301,600
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial Downtown zoning supports commercial, office, retail, and mixed-use redevelopment options.
Where is this mixed-use property located?
The property is located at 32 South MacDonald Mesa, AZ.
What is the asking price?
The asking price for this property is $2,899,000.
What are key features of this property?
This property features: Approximately 20,685 SF of existing historic structures; Commercial Downtown (C‑DT) zoning; Originally built in 1961
