Commercial Ghost Kitchen
For Sale
Contact for pricing
613 E Delano St, Tucson, AZ 85705
Purpose-built ghost kitchen with 18 kitchen spaces, each featuring its own hood and ANSIL system.
Property Size7,605 SF
Price / SF$190.66
Days on Market521
Property Features for 613 E Delano St
General Information
Standard status
Active
Size
7,605 SF
Property subtype
Retail
Restaurant
Commercial Hood
Yes
Grease Trap
Yes
Additional Details
Business Included
Yes
Building Details
Year Built
1971
Listing Agency:
Volk Company Commercial Real Estate
Listed By:
Joey Castillo · License #SA687979000
(520) 495-2234
Source:
Crexi
Added: Apr 3, 2025
Changed: Aug 31
Last Checked: Sep 3 at 2:59AM
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 Volk Company Commercial Real Estate
Investment Insights
Based on property information with market context.
This centrally located commercial ghost kitchen facility is set up for multi-kitchen operations, with 18 kitchen spaces, each including its own hood and ANSIL system. The property also includes five walk-in coolers and dry storage, along with a shared grease interceptor.
The site features a large lot with ample parking and room to expand operations, with easy access to the freeway for convenient customer and delivery movement.
Located at 613 E Delano St in Tucson, the layout supports multiple independent kitchen setups within a single commercial facility, making it well suited for established or expanding food production workflows.
The site features a large lot with ample parking and room to expand operations, with easy access to the freeway for convenient customer and delivery movement.
Located at 613 E Delano St in Tucson, the layout supports multiple independent kitchen setups within a single commercial facility, making it well suited for established or expanding food production workflows.
Key Highlights
- Purpose‑built ghost kitchen with 18 kitchen spaces, each with its own hood and ANSIL system
- Includes 5 walk‑in coolers and shared dry storage
- Dry storage and a shared grease interceptor for kitchen operations
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
$88,157
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
6.08%
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%
$1,763,140
$1.8M
Cap Rate 7%
$1,259,386
$1.3M
Cap Rate 9%
$979,522
$979.5K
Market Conditions
NOI Build-Up for 7,605 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
$127.8K $16.80/SF
− Vacancy
−$10.2K −$1.34/SF
EGI
$117.5K $15.46/SF
− OpEx
−$29.4K −$3.86/SF
NOI
$88.2K $11.59/SF
Area
ZIP 85705
Vacancy
8.00%
Lease Rate
$16.80 /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%
$1,763,140
Cap Rate 7%
$1,259,386
Cap Rate 9%
$979,522
Alternative Uses
Best Use
Specialty Retail
$1.26M
$1.10M – $1.47M
NOI $88,157 @ 7.0% cap · market cap 6.08%
Second Best
Industrial
$735.4K
$643.5K – $857.9K
NOI $51,476 @ 7.0% cap · market cap 3.55%
Theoretical Best
Office A
$1.75M
$1.53M – $2.04M
NOI $122,500 @ 7.0% cap · market cap 8.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Yes
Grease trap
Location Intelligence
Trade Area within ½ mile
909
Businesses Nearby
132k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 60%
Groceries 30%
Apparel 7%
Home Improvements & Furnishings 2%
QuikTrip
Shops & Services
44,670 visits/mo
0.3 miles
Walmart Neighborhood Market
Groceries
39,466 visits/mo
0.3 miles
Circle K
Shops & Services
22,482 visits/mo
0.1 miles
Goodwill
Apparel
8,719 visits/mo
0.2 miles
AutoZone
Shops & Services
4,109 visits/mo
0.4 miles
Demographics for 85705, AZ
56,711
Population
29,145
Households
1.9
Avg Household Size
36
Median Age
20%
College-Educated
80%
High-School Grad
13.6 sq mi
ZIP Area
4,170
Density / Sq Mi
$36,606
Median Household Income
$27,220
Median Earnings
$924
Median Rent
$113,700
Median Home Value
Market
Vacancy Rate% for Retail in Tucson, AZ
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial kitchen - Purpose-built ghost kitchen with 18 kitchen spaces, each featuring its own hood and ANSIL system.
Where is this commercial kitchen located?
The property is located at 613 E Delano St Tucson, AZ.
What is the asking price?
The asking price for this property is $1,450,000.
What are key features of this property?
This property features: Purpose‑built ghost kitchen with 18 kitchen spaces, each with its own hood and ANSIL system; Includes 5 walk‑in coolers and shared dry storage; Dry storage and a shared grease interceptor for kitchen operations
