9-Unit Apartment
For Sale
$800,000
725 E Elm St, Tucson, AZ 85719
Multifamily property with air-conditioned one-bedroom layouts near the University of Arizona.
Property Size4,245 SF
Price / SF$188.46
Days on Market19
Property Features for 725 E Elm St
General Information
Standard status
Active
Size
4,245 SF
Property subtype
Commercial
Additional Details
Public Transit
Yes
Multifamily Units
9
Amenities
air conditioning
Building Details
Year Built
1973
Listing Agency:
Engel & Volkers Tucson
Listed By:
Andres Cota
(520) 954-5800
Source:
Tucsonhomeseeker
Added: Aug 20
Changed: Sep 2
Last Checked: Sep 7 at 9:56AM
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 Engel & Volkers Tucson
Investment Insights
Based on property information with market context.
This 9-unit apartment property contains one-bedroom residences of approximately 470 square feet, with air conditioning in each unit. The 4,245-square-foot asset was built in 1973 and is identified with multifamily zoning.
Located at 725 E Elm Street in Tucson’s 85719 area, the property is approximately one mile from the University of Arizona. Banner University Medical Center, Historic Fourth Avenue, downtown Tucson, shopping, dining, and public transportation are also nearby.
The unit configuration and central Tucson setting support residential use for a range of occupants connected to the university, medical employment, and the surrounding community.
Located at 725 E Elm Street in Tucson’s 85719 area, the property is approximately one mile from the University of Arizona. Banner University Medical Center, Historic Fourth Avenue, downtown Tucson, shopping, dining, and public transportation are also nearby.
The unit configuration and central Tucson setting support residential use for a range of occupants connected to the university, medical employment, and the surrounding community.
Key Highlights
- 9‑unit multifamily property
- 4,245 square feet built in 1973
- One‑bedroom units of approximately 470 square feet
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
$43,619
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
5.45%
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%
$872,380
$872.4K
Cap Rate 7%
$623,129
$623.1K
Cap Rate 9%
$484,656
$484.7K
Market Conditions
NOI Build-Up for 4,245 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
$86.6K $20.40/SF
− Vacancy
−$7.3K −$1.72/SF
EGI
$79.3K $18.68/SF
− OpEx
−$35.7K −$8.41/SF
NOI
$43.6K $10.28/SF
Area
Tucson, AZ
Vacancy
8.42%
Lease Rate
$20.40 /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%
$872,380
Cap Rate 7%
$623,129
Cap Rate 9%
$484,656
Alternative Uses
Best Use
Apartment 5plus
$623.1K
$545.2K – $727.0K
NOI $43,619 @ 7.0% cap · market cap 5.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.10M
$964.9K – $1.29M
NOI $77,192 @ 7.0% cap · market cap 9.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
9
Residential units
Location Intelligence
Trade Area within ½ mile
882
Businesses Nearby
Explore this area
Business Placement
Demographics for 85719, AZ
46,242
Population
21,707
Households
2.1
Avg Household Size
27
Median Age
46%
College-Educated
93%
High-School Grad
8.0 sq mi
ZIP Area
5,780
Density / Sq Mi
$41,086
Median Household Income
$17,430
Median Earnings
$1,051
Median Rent
$266,900
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 - Multifamily property with air-conditioned one-bedroom layouts near the University of Arizona.
Where is this apartment building located?
The property is located at 725 E Elm St Tucson, AZ.
What is the asking price?
The asking price for this property is $800,000.
What are key features of this property?
This property features: 9‑unit multifamily property; 4,245 square feet built in 1973; One‑bedroom units of approximately 470 square feet
