Distribution
New
For Sale
$1,437,500
3240 N Colorado St, Chandler, AZ 85225
Built in 1987 with a three-year seller leaseback structure.
Property Size14,254 SF
Days on Market7
Property Features for 3240 N Colorado St
General Information
Standard status
Active
Size
14,254 SF
Class
C
Property subtype
Industrial - Warehouse/Distribution
Building Details
Building Size
14,254 SF
Year Built
1987
Units
2
Listing Agency:
Levrose Commercial Real Estate
(480) 294-6016
Listed By:
Aaron Norwood · License #SA561466000
Source:
Commercialcafe
Added: Aug 15
Changed: Aug 19
Last Checked: Aug 18 at 8:08AM
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 Levrose Commercial Real Estate
Investment Insights
Based on property information with market context.
This distribution center at 3240 N Colorado St in Chandler, Arizona, was built in 1987. The sale is structured as a sale-leaseback, with the seller remaining in occupancy under a three-year leaseback arrangement.
Key Highlights
- Sale‑leaseback structure with a 3‑year seller leaseback
- Built in 1987
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
$114,148
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
7.94%
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%
$2,282,960
$2.3M
Cap Rate 7%
$1,630,686
$1.6M
Cap Rate 9%
$1,268,311
$1.3M
Market Conditions
NOI Build-Up for 14,254 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
$196.7K $13.80/SF
− Vacancy
−$33.6K −$2.36/SF
EGI
$163.1K $11.44/SF
− OpEx
−$48.9K −$3.43/SF
NOI
$114.1K $8.01/SF
Area
Chandler, AZ
Vacancy
17.10%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
30.00%
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%
$2,282,960
Cap Rate 7%
$1,630,686
Cap Rate 9%
$1,268,311
Alternative Uses
Best Use
Warehouse
$1.98M
$1.73M – $2.31M
NOI $138,608 @ 7.0% cap · market cap 9.64%
Second Best
Industrial
$1.63M
$1.43M – $1.90M
NOI $114,148 @ 7.0% cap · market cap 7.94%
Theoretical Best
Office A
$4.09M
$3.57M – $4.77M
NOI $285,992 @ 7.0% cap · market cap 19.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,181
Businesses Nearby
Explore this area
Business Placement
Demographics for 85225, AZ
73,551
Population
28,930
Households
2.5
Avg Household Size
35
Median Age
33%
College-Educated
88%
High-School Grad
12.7 sq mi
ZIP Area
5,791
Density / Sq Mi
$86,036
Median Household Income
$45,692
Median Earnings
$1,662
Median Rent
$386,800
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Distribution center - Built in 1987 with a three-year seller leaseback structure.
Where is this distribution center located?
The property is located at 3240 N Colorado St Chandler, AZ.
What is the asking price?
The asking price for this property is $1,437,500.
What are key features of this property?
This property features: Sale‑leaseback structure with a 3‑year seller leaseback; Built in 1987
