Garden-Style 10-Plex Apartment
For Sale
$1,700,000
425427 5th Street, Tempe, AZ 85281
Garden-style 10-plex with studio, one- and two-bedroom units, block construction from 1957 and 1963.
Property Size4,414 SF
Price / SF$385.14
Days on Market185
Property Features for 425427 5th Street
General Information
Standard status
Active
Size
4,414 SF
Property subtype
General Commercial
Additional Details
Highway Access
Yes
Multifamily Units
10
Taxes and HOA fees
Annual Taxes
$4,667
Amenities
Central Air
3
100'x167.50'x100'x167.50', 0.39
Paved Road.
Building Details
Year Built
1957
Construction
Block Construction
Tenancy
Multi
Listing Agency:
Tierra Antigua Realty
(520) 444-5401
Listed By:
Mark Hays · License #AZ BR556215000
(520) 444-5401
Source:
Xome
Added: Feb 6
Changed: Aug 7
Last Checked: Aug 10 at 3:36AM
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 Tierra Antigua Realty
Investment Insights
Based on property information with market context.
Offered for sale, this garden-style 10-plex comprises eight studios (approximately 388 sq. ft.), one-bedroom apartments (approximately 550 sq. ft.), and two-bedroom units (approximately 750 sq. ft.). The building features block construction dating to 1957 and 1963.
The property is located at 425–427 W 5th Street in Tempe and is described as a short walk to ASU’s main campus. It is also positioned near the 202 Freeway and Sky Harbor Airport, with nearby restaurants and attractions.
The unit mix is designed for a range of household sizes, while the consistent garden-style setup and long-held ownership reflect an opportunity for an owner-operator or investor to manage this income property at the asset level.
The property is located at 425–427 W 5th Street in Tempe and is described as a short walk to ASU’s main campus. It is also positioned near the 202 Freeway and Sky Harbor Airport, with nearby restaurants and attractions.
The unit mix is designed for a range of household sizes, while the consistent garden-style setup and long-held ownership reflect an opportunity for an owner-operator or investor to manage this income property at the asset level.
Key Highlights
- Garden‑style 10‑plex in Tempe’s Orth subdivision built in 1957 and 1963 (block construction).
- Unit mix includes 8 studios (~388 SF), one 1‑bedroom (~550 SF), and one 2‑bedroom (~750 SF).
- Central air cooling and heating (3) are listed interior features.
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
$59,825
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
3.52%
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%
$1,196,500
$1.2M
Cap Rate 7%
$854,643
$854.6K
Cap Rate 9%
$664,722
$664.7K
Market Conditions
NOI Build-Up for 4,414 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
$115.5K $26.16/SF
− Vacancy
−$6.7K −$1.52/SF
EGI
$108.8K $24.64/SF
− OpEx
−$48.9K −$11.09/SF
NOI
$59.8K $13.55/SF
Area
Tempe, AZ
Vacancy
5.80%
Lease Rate
$26.16 /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%
$1,196,500
Cap Rate 7%
$854,643
Cap Rate 9%
$664,722
Alternative Uses
Best Use
Apartment 5plus
$854.6K
$747.8K – $997.1K
NOI $59,825 @ 7.0% cap · market cap 3.52%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.39M
$1.21M – $1.62M
NOI $97,163 @ 7.0% cap · market cap 5.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
10
Residential units
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
610
Businesses Nearby
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
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 - Garden-style 10-plex with studio, one- and two-bedroom units, block construction from 1957 and 1963.
Where is this apartment building located?
The property is located at 425427 5th Street Tempe, AZ.
What is the asking price?
The asking price for this property is $1,700,000.
What are key features of this property?
This property features: Garden‑style 10‑plex in Tempe’s Orth subdivision built in 1957 and 1963 (block construction).; Unit mix includes 8 studios (~388 SF), one 1‑bedroom (~550 SF), and one 2‑bedroom (~750 SF).; Central air cooling and heating (3) are listed interior features.
