Corner Residential Income
For Sale
$225,000
5525 E THOMAS Road R9, Phoenix, AZ 85018
Ground-level condominium with a 30-day minimum rental period and custom interior finishes.
Property Size848 SF
Days on Market18
Property Features for 5525 E THOMAS Road R9
General Information
Standard status
Active
Size
848 SF
Property subtype
Apartment
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$660
Building Details
Building Size
848 SF
Year Built
1974
Listing Agency:
My Home Group Real Estate
Listed By:
Lindsey Brumagin · License #SA695639000
(623) 742-8889
Source:
Alexiabertsatos
Added: Sep 15
Changed: Oct 2
Last Checked: Oct 1 at 4:44PM
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 My Home Group Real Estate
Investment Insights
Based on property information with market context.
This ground-floor corner condominium is part of a residential income property offering and includes a distinctive collection of custom interior improvements. Features include European cabinetry, handmade concrete tile, concrete flooring, a steel fireplace, and designer-selected finishes. The condominium was built in 1974 and is positioned for use as a residence or rental property, subject to the HOA’s 30-day minimum rental requirement.
The property is located in Phoenix’s Arcadia area near the Scottsdale boundary. Nearby destinations identified for the property include Papago Park, Camelback Mountain, the Phoenix Zoo, Spring Training venues, dining, and Scottsdale Fashion Square.
The property is located in Phoenix’s Arcadia area near the Scottsdale boundary. Nearby destinations identified for the property include Papago Park, Camelback Mountain, the Phoenix Zoo, Spring Training venues, dining, and Scottsdale Fashion Square.
Key Highlights
- Ground‑floor corner condominium
- HOA permits rentals with a 30‑day minimum
- Custom European cabinetry and handmade concrete tile
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
4.40%
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 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$256.9K
$224.8K – $299.7K
NOI $17,981 @ 7.0% cap · market cap 7.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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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
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Frequently Asked Questions
What type of property is this?
Residential income property - Ground-level condominium with a 30-day minimum rental period and custom interior finishes.
Where is this residential income property located?
The property is located at 5525 E THOMAS Road R9 Phoenix, AZ.
What is the asking price?
The asking price for this property is $225,000.
What are key features of this property?
This property features: Ground‑floor corner condominium; HOA permits rentals with a 30‑day minimum; Custom European cabinetry and handmade concrete tile
