Residential Income Property with Two
For Sale
$275,000
850 S RIVER Drive 2071, Tempe, AZ 85281
Condo residence in a gated community with a tiled patio, in-unit laundry, and pool outlook.
Property Size1,130 SF
Days on Market9
Property Features for 850 S RIVER Drive 2071
General Information
Standard status
Active
Size
1,130 SF
Property subtype
Apartment
Site & Location
Highway Access
Yes
Public Transit
Yes
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$1,353
Amenities
gated community
community pool
private tiled patio with laundry equipped with washer dryer
stone fireplace
wood plantation shutters
Building Details
Building Size
1,130 SF
Year Built
1983
Listing Agency:
ProSmart Realty
(602) 380-8708
Listed By:
Jesse Wintersteen · License #SA691342000
(602) 380-8708
Source:
Alexiabertsatos
Added: Aug 14
Changed: Aug 20
Last Checked: Aug 22 at 12:06PM
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 ProSmart Realty
Investment Insights
Based on property information with market context.
Built in 1983, this condominium residence features two master suites arranged for separation and flexible occupancy. Interior details include a stone fireplace and wood plantation shutters. The unit also has a private tiled patio and laundry equipment with a washer and dryer.
Positioned within a gated community, the residence looks toward the community pool and is described as set apart from street noise. The property is near ASU, a bus stop, the 101 freeway, and light rail, providing access to nearby education, roadway, and transit connections.
Positioned within a gated community, the residence looks toward the community pool and is described as set apart from street noise. The property is near ASU, a bus stop, the 101 freeway, and light rail, providing access to nearby education, roadway, and transit connections.
Key Highlights
- Two master suites provide separated bedroom accommodations
- Private tiled patio with washer and dryer
- Stone fireplace and wood plantation shutters
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
$15,315
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
5.57%
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%
$306,300
$306.3K
Cap Rate 7%
$218,786
$218.8K
Cap Rate 9%
$170,167
$170.2K
Market Conditions
NOI Build-Up for 1,130 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
$29.6K $26.16/SF
− Vacancy
−$1.7K −$1.52/SF
EGI
$27.8K $24.64/SF
− OpEx
−$12.5K −$11.09/SF
NOI
$15.3K $13.55/SF
Area
Tempe, AZ
Vacancy
5.80%
Lease Rate
$26.16 /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%
$306,300
Cap Rate 7%
$218,786
Cap Rate 9%
$170,167
Alternative Uses
Best Use
Apartment 5plus
$218.8K
$191.4K – $255.3K
NOI $15,315 @ 7.0% cap · market cap 5.57%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$355.3K
$310.9K – $414.6K
NOI $24,874 @ 7.0% cap · market cap 9.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,530
Businesses Nearby
Explore this area
Business Placement
Demographics for 85281, AZ
69,218
Population
32,475
Households
2.1
Avg Household Size
26
Median Age
49%
College-Educated
91%
High-School Grad
13.3 sq mi
ZIP Area
5,204
Density / Sq Mi
$59,084
Median Household Income
$32,805
Median Earnings
$1,531
Median Rent
$364,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Condo residence in a gated community with a tiled patio, in-unit laundry, and pool outlook.
Where is this residential income property located?
The property is located at 850 S RIVER Drive 2071 Tempe, AZ.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: Two master suites provide separated bedroom accommodations; Private tiled patio with washer and dryer; Stone fireplace and wood plantation shutters
