Income-Producing Tucson Industrial
For Sale
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4201 S Santa Rita Ave, Tucson, AZ 85714
Three-property, 100% leased flex industrial portfolio in Tucson, Arizona.
Property Size153,123 SF
Price / SF$156.74
Days on Market146
Property Features for 4201 S Santa Rita Ave
General Information
Standard status
Active
Size
153,123 SF
Property subtype
Industrial
Zoning
I-1
Occupancy
100%
Lease Type
NNN
Building Details
Tenancy
Multi
Listing Agency:
Chapman Management Group
Listed By:
Erik Chapman · License #BR672821000
Source:
Crexi
Added: Mar 23
Changed: Aug 12
Last Checked: Aug 14 at 6:13AM
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 Chapman Management Group
Investment Insights
Based on property information with market context.
This offering features a portfolio of three income-producing, multi-tenant flex industrial properties. The portfolio is fully leased to a diverse mix of local, national, and government tenants, ensuring stable cash flow. The properties are strategically located within Tucson’s primary industrial corridor, providing immediate access to Tucson International Airport, Interstate 10, and Interstate 19. Major capital improvements, including roof replacements, have been completed within the last 18 months, reducing near-term capital expenditure requirements. The portfolio is fully stabilized and has been professionally managed for over 20 years.
Key Highlights
- Three‑property, income‑producing portfolio of multi‑tenant flex industrial assets.
- 100% leased to a diverse mix of tenants, including local, national, and government entities, ensuring stable cash flow.
- Strategically located in Tucson’s primary industrial corridor with immediate access to Tucson International Airport, Interstate 10, and Interstate 19.
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
$1,109,608
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
4.62%
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%
$22,192,160
$22.2M
Cap Rate 7%
$15,851,543
$15.9M
Cap Rate 9%
$12,328,978
$12.3M
Market Conditions
NOI Build-Up for 153,123 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
$1.67M $10.92/SF
− Vacancy
−$86.9K −$0.57/SF
EGI
$1.59M $10.35/SF
− OpEx
−$475.5K −$3.11/SF
NOI
$1.11M $7.25/SF
Area
Tucson, AZ
Vacancy
5.20%
Lease Rate
$10.92 /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%
$22,192,160
Cap Rate 7%
$15,851,543
Cap Rate 9%
$12,328,978
Alternative Uses
Best Use
Industrial
$15.85M
$13.87M – $18.49M
NOI $1,109,608 @ 7.0% cap · market cap 4.62%
Second Best
Flex RnD
$14.72M
$12.88M – $17.17M
NOI $1,030,350 @ 7.0% cap · market cap 4.29%
Theoretical Best
Office A
$39.78M
$34.81M – $46.41M
NOI $2,784,438 @ 7.0% cap · market cap 11.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
755
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85714, AZ
14,232
Population
5,589
Households
2.5
Avg Household Size
38
Median Age
10%
College-Educated
69%
High-School Grad
5.6 sq mi
ZIP Area
2,541
Density / Sq Mi
$47,093
Median Household Income
$30,204
Median Earnings
$879
Median Rent
$177,100
Median Home Value
Market
Vacancy Rate% for Industrial in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Three-property, 100% leased flex industrial portfolio in Tucson, Arizona.
Where is this flex space located?
The property is located at 4201 S Santa Rita Ave Tucson, AZ.
What is the asking price?
The asking price for this property is $24,000,000.
What are key features of this property?
This property features: Three‑property, income‑producing portfolio of multi‑tenant flex industrial assets.; 100% leased to a diverse mix of tenants, including local, national, and government entities, ensuring stable cash flow.; Strategically located in Tucson’s primary industrial corridor with immediate access to Tucson International Airport, Interstate 10, and Interstate 19.
