Remodeled Residential Income
For Sale
$284,888
8649 E ROYAL PALM Road 213, Scottsdale, AZ 85258
Updated condo with resort-style amenities near Mercado dining, retail, and Lake Marguerite recreation.
Property Size758 SF
Days on Market9
Property Features for 8649 E ROYAL PALM Road 213
General Information
Standard status
Active
Size
758 SF
Property subtype
Apartment
Taxes and HOA fees
Annual Taxes
$803
Building Details
Building Size
758 SF
Year Built
1980
Listing Agency:
Compass
(602) 904-2362
Listed By:
Jared B Shahon
(602) 904-2362
Source:
Alexiabertsatos
Added: Aug 14
Changed: Aug 20
Last Checked: Aug 21 at 11:41AM
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 Compass
Investment Insights
Based on property information with market context.
This one-bedroom, one-bathroom condominium in McCormick Ranch received extensive updates in 2026, including a redesigned kitchen with Taj Mahal finishes, a refreshed bathroom, new flooring, and new appliances. The property also has an HVAC system installed in 2024. Furnishings are available as part of the sale.
Residents have access to a pool, hot tub, tennis courts, and pickleball courts. The condo is located a short distance from Mercado restaurants, bars, and shops, while Lake Marguerite is less than half a mile away with biking and walking paths. Built in 1980, the property combines an updated interior with established community amenities and nearby recreation.
Residents have access to a pool, hot tub, tennis courts, and pickleball courts. The condo is located a short distance from Mercado restaurants, bars, and shops, while Lake Marguerite is less than half a mile away with biking and walking paths. Built in 1980, the property combines an updated interior with established community amenities and nearby recreation.
Key Highlights
- One‑bedroom, one‑bathroom condo in McCormick Ranch
- Interior renovations completed in 2026
- New kitchen with Taj Mahal finishes and new appliances
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
$8,771
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
3.08%
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%
$175,420
$175.4K
Cap Rate 7%
$125,300
$125.3K
Cap Rate 9%
$97,456
$97.5K
Market Conditions
NOI Build-Up for 758 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
$16.6K $21.96/SF
− Vacancy
−$699 −$0.92/SF
EGI
$15.9K $21.04/SF
− OpEx
−$7.2K −$9.47/SF
NOI
$8.8K $11.57/SF
Area
Scottsdale, AZ
Vacancy
4.20%
Lease Rate
$21.96 /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%
$175,420
Cap Rate 7%
$125,300
Cap Rate 9%
$97,456
Alternative Uses
Best Use
Apartment 5plus
$125.3K
$109.6K – $146.2K
NOI $8,771 @ 7.0% cap · market cap 3.08%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$248.8K
$217.7K – $290.3K
NOI $17,418 @ 7.0% cap · market cap 6.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,951
Businesses Nearby
Explore this area
Business Placement
Demographics for 85258, AZ
25,203
Population
15,566
Households
1.6
Avg Household Size
55
Median Age
63%
College-Educated
99%
High-School Grad
10.3 sq mi
ZIP Area
2,447
Density / Sq Mi
$105,171
Median Household Income
$68,184
Median Earnings
$1,945
Median Rent
$744,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Updated condo with resort-style amenities near Mercado dining, retail, and Lake Marguerite recreation.
Where is this residential income property located?
The property is located at 8649 E ROYAL PALM Road 213 Scottsdale, AZ.
What is the asking price?
The asking price for this property is $284,888.
What are key features of this property?
This property features: One‑bedroom, one‑bathroom condo in McCormick Ranch; Interior renovations completed in 2026; New kitchen with Taj Mahal finishes and new appliances
