104-Unit Motel
For Sale
$5,500,000
5540 N Sunland Gin Road, Casa Grande, AZ 85193
Two-story hospitality property with a pool, event facilities, commercial kitchen, and substantial parking improvements.
Property Size49,683 SF
Lot Size3.91 Acres
Price / SF$110.70
Days on Market14
Property Features for 5540 N Sunland Gin Road
General Information
Standard status
Active
Size
49,683 SF
Lot size
3.91 Acres
Property subtype
Comm/Industry Sale
Property Condition
Severity
Repairs Needed
Evidence
requires renovation
Site & Location
Pylon Signage
Yes
Highway Access
Yes
Additional Details
Opportunity Zone
Yes
Amenities
mountain views
mature palm trees
fenced courtyard pool
conference room
banquet hall
commercial kitchen
restaurant space
manager suite
Building Details
Stories
2
Listing Agency:
Realty ONE Group
(480) 321-8100
Listed By:
Lindsay A Mozena · License #SA658766000
Source:
Realtorbevb
Added: Aug 15
Changed: Aug 28
Last Checked: Aug 26 at 10:32AM
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 Realty ONE Group
Investment Insights
Based on property information with market context.
Built in 1974, this two-story motel property comprises 104 units across 3.91 acres and two parcels. The unit mix includes 58 single units and 46 double units. Existing improvements include a fenced courtyard pool, large parking lot, pole sign, mature palm trees, mountain views, a manager suite, conference room, banquet hall, restaurant space, and commercial kitchen. The property requires renovation.
Located in Casa Grande at 5540 N Sunland Gin Rd, the property is near dining and provides access to I-10. It is situated within an Opportunity Zone and offers an existing hospitality layout with event, food-service, and guest-accommodation components.
Located in Casa Grande at 5540 N Sunland Gin Rd, the property is near dining and provides access to I-10. It is situated within an Opportunity Zone and offers an existing hospitality layout with event, food-service, and guest-accommodation components.
Key Highlights
- 104 total units: 58 single and 46 double
- 3.91 acres across two parcels
- Two‑story property built in 1974
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
$212,551
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
3.86%
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%
$4,251,020
$4.3M
Cap Rate 7%
$3,036,443
$3.0M
Cap Rate 9%
$2,361,678
$2.4M
Market Conditions
NOI Build-Up for 49,683 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
$506.8K $10.20/SF
− Vacancy
−$59.3K −$1.19/SF
EGI
$447.5K $9.01/SF
− OpEx
−$234.9K −$4.73/SF
NOI
$212.6K $4.28/SF
Area
Pinal County, AZ
Vacancy
11.70%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
52.50%
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%
$4,251,020
Cap Rate 7%
$3,036,443
Cap Rate 9%
$2,361,678
Alternative Uses
Best Use
Hotel Hospitality
$3.04M
$2.66M – $3.54M
NOI $212,551 @ 7.0% cap · market cap 3.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$13.74M
$12.02M – $16.02M
NOI $961,478 @ 7.0% cap · market cap 17.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
65
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85193, AZ
4,450
Population
1,650
Households
2.7
Avg Household Size
40
Median Age
6%
College-Educated
74%
High-School Grad
213.3 sq mi
ZIP Area
21
Density / Sq Mi
$61,860
Median Household Income
$33,878
Median Earnings
$846
Median Rent
$118,900
Median Home Value
Questions? Ask Rey
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Similar Off Market Nearby
- Motel 6 Eloy, AZ - Casa Grande — 4965 Sunland Gin Rd, Eloy, AZ 85131
Frequently Asked Questions
What type of property is this?
Motel - Two-story hospitality property with a pool, event facilities, commercial kitchen, and substantial parking improvements.
Where is this motel located?
The property is located at 5540 N Sunland Gin Road Casa Grande, AZ.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: 104 total units: 58 single and 46 double; 3.91 acres across two parcels; Two‑story property built in 1974
