Upgraded 12-Unit Apartment
For Sale
Contact for pricing
3611 N 5th Ave, Phoenix, AZ 85013
Twelve upgraded three-bedroom units each include in-unit washer/dryer, modernized bathrooms, and covered parking.
Property Size14,400 SF
Price / SF$236.11
Days on Market113
Property Features for 3611 N 5th Ave
General Information
Standard status
Active
Size
14,400 SF
Class
C
Property subtype
Multifamily
Zoning
R-4
Occupancy
100%
Investment Type
Stabilized
Net Operating Income
$178,903
Additional Details
Multifamily Units
12
Amenities
gated access entry ways
charcoal barbeque grills
resort-style swimming pool
covered parking
low maintenance desert landscaping
Building Details
Year Built
1961
Year Renovated
2016
Buildings
1
Stories
2
Units
12
Tenancy
Single
Listing Agency:
Matthews
Listed By:
Kyle Inman · License #AZ SA691658000
(480) 703-8955
Source:
Crexi
Added: May 19
Changed: Sep 7
Last Checked: Sep 7 at 8:14AM
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 Matthews
Investment Insights
Based on property information with market context.
Melrose on 5th is a 12-unit multifamily community originally built in 1961 and repositioned in 2016. The property offers a rare mix of 3-bedroom, 2-bath floor plans, with each unit measuring approximately 1,200 square feet. Unit interiors are upgraded and include washer/dryers, fully equipped kitchens with dishwashers and built-in microwaves, stainless steel appliances, faux vinyl wood flooring, and modernized bathrooms.
Exterior amenities include gated access entry ways, charcoal barbeque grills, a resort-style swimming pool, covered parking, and low-maintenance desert landscaping.
The community is presented as a well-maintained, renovated asset with uniform three-bedroom configurations and upgraded in-unit features.
Exterior amenities include gated access entry ways, charcoal barbeque grills, a resort-style swimming pool, covered parking, and low-maintenance desert landscaping.
The community is presented as a well-maintained, renovated asset with uniform three-bedroom configurations and upgraded in-unit features.
Key Highlights
- 12‑unit multifamily property built in 1961, with 2016 repositioning.
- Unit mix: (12) 3‑bedroom, 2‑bath floor plans, approximately 1,200 SF each.
- Upgraded interiors with in‑unit washer/dryer and fully equipped kitchens with dishwashers and built‑in microwaves.
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
$167,955
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
4.94%
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%
$3,359,100
$3.4M
Cap Rate 7%
$2,399,357
$2.4M
Cap Rate 9%
$1,866,167
$1.9M
Market Conditions
NOI Build-Up for 14,400 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
$324.9K $22.56/SF
− Vacancy
−$19.5K −$1.35/SF
EGI
$305.4K $21.21/SF
− OpEx
−$137.4K −$9.54/SF
NOI
$168.0K $11.66/SF
Area
Phoenix, AZ
Vacancy
6.00%
Lease Rate
$22.56 /SF/Yr
Expense Ratio
45.00%
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%
$3,359,100
Cap Rate 7%
$2,399,357
Cap Rate 9%
$1,866,167
Alternative Uses
Best Use
Apartment 5plus
$2.40M
$2.10M – $2.80M
NOI $167,955 @ 7.0% cap · market cap 4.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.36M
$3.82M – $5.09M
NOI $305,332 @ 7.0% cap · market cap 8.98%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
Location Intelligence
Trade Area within ½ mile
5,005
Businesses Nearby
Explore this area
Business Placement
Demographics for 85013, AZ
21,970
Population
11,618
Households
1.9
Avg Household Size
38
Median Age
47%
College-Educated
90%
High-School Grad
3.7 sq mi
ZIP Area
5,938
Density / Sq Mi
$68,895
Median Household Income
$53,067
Median Earnings
$1,435
Median Rent
$476,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Twelve upgraded three-bedroom units each include in-unit washer/dryer, modernized bathrooms, and covered parking.
Where is this apartment building located?
The property is located at 3611 N 5th Ave Phoenix, AZ.
What is the asking price?
The asking price for this property is $3,400,000.
What are key features of this property?
This property features: 12‑unit multifamily property built in 1961, with 2016 repositioning.; Unit mix: (12) 3‑bedroom, 2‑bath floor plans, approximately 1,200 SF each.; Upgraded interiors with in‑unit washer/dryer and fully equipped kitchens with dishwashers and built‑in microwaves.
