Refurbished Tucson Office/Medical
For Sale
Contact for pricing
3655 E 2nd Street, Tucson, AZ 85716
Recently refurbished office/medical facility with long-term tenant.
Property Size11,259 SF
Price / SF$293.99
Days on Market151
Property Features for 3655 E 2nd Street
General Information
Standard status
Active
Size
11,259 SF
Class
C
Property subtype
Office
Zoning
0-3 City of Tucson
Occupancy
100%
Lease Type
NNN
Investment Type
Sale/Leaseback
Building Details
Year Renovated
2023
Buildings
3
Stories
1
Tenancy
Single
Listing Agency:
Tucson Realty and Trust Co
Listed By:
Hank Amos · License #Tucson Realty & Trust Co. AZ BR00721500
Source:
Crexi
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 11:31AM
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 Tucson Realty and Trust Co
Investment Insights
Based on property information with market context.
This recently refurbished office/medical facility is located at 3655 E. 2nd St. in Tucson, Arizona. The property offers an opportunity to purchase with a sale/leaseback arrangement. The tenant, Recovery in Motion (RIM), established in 2015, provides mental health and addiction treatment. The organization is guided by leadership with over 77 years of recovery and industry experience, and services are delivered by a multidisciplinary clinical team that includes physicians, licensed therapists, social workers, psychologists, and psychiatrists. The tenant maintains consistent occupancy and predictable facility utilization due to scheduled clinical operations. The tenant will sign a 10-year NNN lease at $25.00 per square foot and will pay the first year’s rent in advance. The property size is 11259 square feet.
Key Highlights
- 10‑year NNN lease in place with Recovery in Motion (RIM), a professionally operated mental health and addiction treatment provider.
- First year's rent paid in advance.
- 8.5% first‑year cap rate at the asking price of $3,310,000.**
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
$164,521
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
4.97%
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%
$3,290,420
$3.3M
Cap Rate 7%
$2,350,300
$2.4M
Cap Rate 9%
$1,828,011
$1.8M
Market Conditions
NOI Build-Up for 11,259 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
$243.2K $21.60/SF
− Vacancy
−$23.8K −$2.12/SF
EGI
$219.4K $19.48/SF
− OpEx
−$54.8K −$4.87/SF
NOI
$164.5K $14.61/SF
Area
Tucson, AZ
Vacancy
9.80%
Lease Rate
$21.60 /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%
$3,290,420
Cap Rate 7%
$2,350,300
Cap Rate 9%
$1,828,011
Alternative Uses
Best Use
Office B
$2.35M
$2.06M – $2.74M
NOI $164,521 @ 7.0% cap · market cap 4.97%
Second Best
Healthcare Medical
$2.14M
$1.87M – $2.50M
NOI $149,970 @ 7.0% cap · market cap 4.53%
Theoretical Best
Office A
$2.92M
$2.56M – $3.41M
NOI $204,737 @ 7.0% cap · market cap 6.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,202
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85716, AZ
31,521
Population
19,025
Households
1.7
Avg Household Size
39
Median Age
42%
College-Educated
92%
High-School Grad
7.2 sq mi
ZIP Area
4,378
Density / Sq Mi
$47,009
Median Household Income
$33,367
Median Earnings
$1,021
Median Rent
$300,900
Median Home Value
Market
Vacancy Rate% for Office in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Recently refurbished office/medical facility with long-term tenant.
Where is this medical office space located?
The property is located at 3655 E 2nd Street Tucson, AZ.
What is the asking price?
The asking price for this property is $3,310,000.
What are key features of this property?
This property features: 10‑year NNN lease in place with Recovery in Motion (RIM), a professionally operated mental health and addiction treatment provider.; First year's rent paid in advance.; 8.5% first‑year cap rate at the asking price of $3,310,000.**
