New Marriott Hotel Investment
For Sale
Contact for pricing
SEC of E Rio Salado Pkwy. & S Perry Ln, Tempe, AZ 85281
New construction Marriott Hotel on 99-year ground lease for sale.
Property Size81,357 SF
Price / SF$92.19
Days on Market1933
Property Features for SEC of E Rio Salado Pkwy. & S Perry Ln
General Information
Standard status
Active
Size
81,357 SF
Property subtype
Retail
Lease Type
NNN
Net Operating Income
$265,000
Building Details
Stories
4
Tenancy
Single
Listing Agency:
Colliers - Los Angeles - Orange County, California
Listed By:
Eric Carlton · License #CA 01809955
(949) 724-5561
Source:
Crexi
Added: May 21, 2021
Changed: Aug 25
Last Checked: Sep 2 at 12:10AM
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 Colliers - Los Angeles - Orange County, California
Investment Insights
Based on property information with market context.
This is an opportunity to purchase a newly constructed, single-tenant, absolute NNN leased Marriott Hotel. The property is situated on a 99-year ground lease. Located within 1.5 miles of Arizona State University, the location is across from Tempe Marketplace and benefits from proximity to Loop 202 & Loop 101. The property is less than a mile from the renovated Riverview Baseball Complex and Sloan Park, home to the Chicago Cubs Spring Training Facility. The offering is part of a larger mixed-use development that includes 6 freestanding retail buildings. This provides synergies to each use and complements the surrounding developments with Arizona State University, Tempe Marketplace, and the Chicago Cubs Spring Training Facility. The property provides 99 years of passive income with 2% annual increases and zero landlord obligations. The property size is 81357 square feet.
Key Highlights
- Brand new construction single tenant absolute NNN leased Marriott Hotel.
- 99‑year ground lease providing generational quality real estate.
- Located within 1.5 miles of Arizona State University.
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
$507,210
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
6.76%
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%
$10,144,200
$10.1M
Cap Rate 7%
$7,245,857
$7.2M
Cap Rate 9%
$5,635,667
$5.6M
Market Conditions
NOI Build-Up for 81,357 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
$1.22M $15.00/SF
− Vacancy
−$152.5K −$1.88/SF
EGI
$1.07M $13.13/SF
− OpEx
−$560.6K −$6.89/SF
NOI
$507.2K $6.23/SF
Area
Tempe, AZ
Vacancy
12.50%
Lease Rate
$15.00 /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%
$10,144,200
Cap Rate 7%
$7,245,857
Cap Rate 9%
$5,635,667
Alternative Uses
Best Use
Hotel Hospitality
$7.25M
$6.34M – $8.45M
NOI $507,210 @ 7.0% cap · market cap 6.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$25.58M
$22.39M – $29.85M
NOI $1,790,864 @ 7.0% cap · market cap 23.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,517
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?
Hotel - New construction Marriott Hotel on 99-year ground lease for sale.
Where is this hotel located?
The property is located at SEC of E Rio Salado Pkwy. & S Perry Ln Tempe, AZ.
What is the asking price?
The asking price for this property is $7,500,000.
What are key features of this property?
This property features: Brand new construction single tenant absolute NNN leased Marriott Hotel.; 99‑year ground lease providing generational quality real estate.; Located within 1.5 miles of Arizona State University.
