Updated Residential Income
For Sale
$217,500
5525 E THOMAS Road M12, Phoenix, AZ 85018
Two-bedroom residence with remodeled bath, quartz surfaces, and access to a heated pool, spa, gym, and media room.
Property Size848 SF
Price / SF$256.49
Days on Market57
Property Features for 5525 E THOMAS Road M12
General Information
Standard status
Active
Size
848 SF
Property subtype
Apartment
Units
Unit Mix
1 x 2BR/1BA
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$660
Amenities
heated pool
heated spa
gym
community media room
on-site laundry rooms
BBQ
fountains
shady tree lined paths
Building Details
Building Size
848 SF
Year Built
1974
Listing Agency:
Keller Williams Realty Sonoran Living
Listed By:
Greg Kilroy · License #BR545652000
(480) 235-4312
Source:
Alexiabertsatos
Added: Jul 9
Changed: Aug 14
Last Checked: Sep 2 at 12:26AM
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 Keller Williams Realty Sonoran Living
Investment Insights
Based on property information with market context.
This 2-bedroom, 1-bath condo offers 848 square feet of updated living space in a community built in 1974. Improvements include quartz countertops, a fully remodeled bathroom, newer stainless steel appliances, and energy-efficient windows. The residence also has a view of the heated pool and can serve as a full-time home or lock-and-leave getaway.
Community amenities include a heated spa, gym, media room, onsite laundry rooms, BBQ areas, fountains, and tree-lined pedestrian paths. The property is near the Arizona Country Club, Arcadia restaurants, Old Town Scottsdale, ASU, Sky Harbor, and Spring Training destinations.
Community amenities include a heated spa, gym, media room, onsite laundry rooms, BBQ areas, fountains, and tree-lined pedestrian paths. The property is near the Arizona Country Club, Arcadia restaurants, Old Town Scottsdale, ASU, Sky Harbor, and Spring Training destinations.
Key Highlights
- 2‑bedroom, 1‑bath condo with 848 sf of living space
- View of the heated pool
- Quartz countertops and fully remodeled bathroom
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
$9,891
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
4.55%
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%
$197,820
$197.8K
Cap Rate 7%
$141,300
$141.3K
Cap Rate 9%
$109,900
$109.9K
Market Conditions
NOI Build-Up for 848 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
$19.1K $22.56/SF
− Vacancy
−$1.1K −$1.35/SF
EGI
$18.0K $21.21/SF
− OpEx
−$8.1K −$9.54/SF
NOI
$9.9K $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%
$197,820
Cap Rate 7%
$141,300
Cap Rate 9%
$109,900
Alternative Uses
Best Use
Apartment 5plus
$141.3K
$123.6K – $164.9K
NOI $9,891 @ 7.0% cap · market cap 4.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$256.9K
$224.8K – $299.7K
NOI $17,981 @ 7.0% cap · market cap 8.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
404
Businesses Nearby
Explore this area
Business Placement
Demographics for 85018, AZ
37,944
Population
19,487
Households
1.9
Avg Household Size
40
Median Age
57%
College-Educated
92%
High-School Grad
15.1 sq mi
ZIP Area
2,513
Density / Sq Mi
$87,637
Median Household Income
$58,555
Median Earnings
$1,411
Median Rent
$805,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Two-bedroom residence with remodeled bath, quartz surfaces, and access to a heated pool, spa, gym, and media room.
Where is this residential income property located?
The property is located at 5525 E THOMAS Road M12 Phoenix, AZ.
What is the asking price?
The asking price for this property is $217,500.
What are key features of this property?
This property features: 2‑bedroom, 1‑bath condo with 848 sf of living space; View of the heated pool; Quartz countertops and fully remodeled bathroom
