Turnkey Restaurant Building with
For Sale
$635,000
3452 Milton Road, Tucson, AZ 85706
Fully renovated restaurant building with HVAC upgrades, electrical and sewer work, and a large walk-in freezer.
Property Size2,116 SF
Lot Size0.22 Acres
Price / SF$300.09
Days on Market405
Property Features for 3452 Milton Road
General Information
Standard status
Active
Size
2,116 SF
Total Parking Spaces
9
Lot size
0.22 Acres
Property subtype
General Commercial
Zoning
MU
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Taxes and HOA fees
Annual Taxes
$3,425
Amenities
Central Air, Heat Pump
3
Private.
126x79, 0.22
Paved Road.
Building Details
Year Built
1973
Listing Agency:
Engel & Volkers Tucson
(520) 369-1527
Listed By:
Andres Cota
(520) 369-1527
Source:
Xome
Added: Jun 30, 2025
Changed: Aug 8
Last Checked: Aug 8 at 3:46AM
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 Engel & Volkers Tucson
Investment Insights
Based on property information with market context.
Fully renovated commercial restaurant building offering modern infrastructure and turnkey usability. Recent upgrades include electrical improvements, sewer line work, HVAC updates, and the addition of a large walk-in freezer. The setup includes a commissary setup and basic equipment that will convey.
The property is positioned just off I-10 and sits on a 9,750 SF lot with partial fencing and nine parking spaces.
Zoned MU (Mixed Use), the site supports a wide range of commercial, office, retail, service, or live/work uses, providing flexibility for an owner-user or investor.
The property is positioned just off I-10 and sits on a 9,750 SF lot with partial fencing and nine parking spaces.
Zoned MU (Mixed Use), the site supports a wide range of commercial, office, retail, service, or live/work uses, providing flexibility for an owner-user or investor.
Key Highlights
- Fully renovated 1,860 SF commercial building with Central Air and heat pump heating
- Recent upgrades include electrical, sewer line work, and HVAC improvements
- Large walk‑in freezer plus huge walkin freezer; basic equipment will convey
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
$24,662
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
3.88%
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%
$493,240
$493.2K
Cap Rate 7%
$352,314
$352.3K
Cap Rate 9%
$274,022
$274.0K
Market Conditions
NOI Build-Up for 2,116 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
$35.5K $16.80/SF
− Vacancy
−$2.7K −$1.26/SF
EGI
$32.9K $15.54/SF
− OpEx
−$8.2K −$3.89/SF
NOI
$24.7K $11.66/SF
Area
ZIP 85706
Vacancy
7.50%
Lease Rate
$16.80 /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%
$493,240
Cap Rate 7%
$352,314
Cap Rate 9%
$274,022
Alternative Uses
Best Use
Specialty Retail
$352.3K
$308.3K – $411.0K
NOI $24,662 @ 7.0% cap · market cap 3.88%
Second Best
Industrial
$204.6K
$179.0K – $238.7K
NOI $14,323 @ 7.0% cap · market cap 2.26%
Theoretical Best
Office A
$437.5K
$382.9K – $510.5K
NOI $30,628 @ 7.0% cap · market cap 4.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
226
Businesses Nearby
39k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Family Dollar
Shops & Services
16,023 visits/mo
0.2 miles
Circle K
Shops & Services
12,357 visits/mo
0.5 miles
Circle K
Shops & Services
10,120 visits/mo
0.5 miles
Demographics for 85706, AZ
54,853
Population
19,095
Households
2.9
Avg Household Size
33
Median Age
10%
College-Educated
70%
High-School Grad
13.1 sq mi
ZIP Area
4,187
Density / Sq Mi
$49,072
Median Household Income
$30,977
Median Earnings
$981
Median Rent
$169,600
Median Home Value
Market
Vacancy Rate% for Retail in Tucson, AZ
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial kitchen - Fully renovated restaurant building with HVAC upgrades, electrical and sewer work, and a large walk-in freezer.
Where is this commercial kitchen located?
The property is located at 3452 Milton Road Tucson, AZ.
What is the asking price?
The asking price for this property is $635,000.
What are key features of this property?
This property features: Fully renovated 1,860 SF commercial building with Central Air and heat pump heating; Recent upgrades include electrical, sewer line work, and HVAC improvements; Large walk‑in freezer plus huge walkin freezer; basic equipment will convey
