Office Building with Fenced
For Sale
Contact for pricing
4238 N 7th Ave, Phoenix, AZ 85013
Office building in the Melrose District with fenced yard and frontage on 7th Avenue.
Property Size8,100 SF
Price / SF$246.30
Days on Market1407
Property Features for 4238 N 7th Ave
General Information
Standard status
Active
Size
8,100 SF
Property subtype
OFFICE
Zoning
C-2
Additional Details
Highway Access
Yes
Amenities
Fenced Yard
Large Monument Sign
Building Details
Building Size
8,100 SF
Listing Agency:
Lee & Associates | Phoenix
(602) 956-7777
Listed By:
Matthew Fredrick
(602) 373-6922
Source:
Moodyscre
Added: Nov 9, 2022
Changed: Aug 15
Last Checked: Sep 15 at 8:39AM
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 Lee & Associates | Phoenix
Investment Insights
Based on property information with market context.
This office building totals approximately 8,100 square feet and includes a fenced yard for added exterior control. The property is located in the Melrose District and is zoned C-2 (City of Phoenix).
Frontage on 7th Avenue is highlighted by a large monument sign, supporting prominent street presence. The location also offers good proximity to the SR-51 and I-17 freeways.
Overall, the asset combines office space with exterior fenced area and visible signage along a major corridor, positioned within a commercial zoning district.
Frontage on 7th Avenue is highlighted by a large monument sign, supporting prominent street presence. The location also offers good proximity to the SR-51 and I-17 freeways.
Overall, the asset combines office space with exterior fenced area and visible signage along a major corridor, positioned within a commercial zoning district.
Key Highlights
- Office building totaling 8,100 SF
- Located in the Melrose District
- C‑2 zoning (City of Phoenix)
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
$138,662
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
6.95%
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%
$2,773,240
$2.8M
Cap Rate 7%
$1,980,886
$2.0M
Cap Rate 9%
$1,540,689
$1.5M
Market Conditions
NOI Build-Up for 8,100 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
$248.8K $30.72/SF
− Vacancy
−$63.9K −$7.90/SF
EGI
$184.9K $22.82/SF
− OpEx
−$46.2K −$5.71/SF
NOI
$138.7K $17.12/SF
Area
Phoenix, AZ
Vacancy
25.70%
Lease Rate
$30.72 /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%
$2,773,240
Cap Rate 7%
$1,980,886
Cap Rate 9%
$1,540,689
Alternative Uses
Best Use
Office B
$1.98M
$1.73M – $2.31M
NOI $138,662 @ 7.0% cap · market cap 6.95%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.45M
$2.15M – $2.86M
NOI $171,749 @ 7.0% cap · market cap 8.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,541
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in Phoenix, AZ
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Frequently Asked Questions
What type of property is this?
Office building - Office building in the Melrose District with fenced yard and frontage on 7th Avenue.
Where is this office building located?
The property is located at 4238 N 7th Ave Phoenix, AZ.
What is the asking price?
The asking price for this property is $1,995,000.
What are key features of this property?
This property features: Office building totaling 8,100 SF; Located in the Melrose District; C‑2 zoning (City of Phoenix)
