720 Montecito Ave Phoenix, AZ 85014

Property Details for 720 Montecito Ave

Year built

1955

Property type

Commercial real estate

Description

This exceptional 4-unit apartment building presents a compelling investment opportunity in Phoenix's vibrant Midtown submarket. Built in 1955 and extensively renovated in 2020, the property boasts a mix of three 2-bedroom, 1-bathroom units and one 1-bedroom, 1-bathroom unit, totaling 2,725 square feet of net rentable space. Currently operating at 100% occupancy, the property generates a substantial NOI of $60,501, representing a 5.90% cap rate. Pro-forma projections indicate a significantly higher NOI of $81,398 and a 7.94% cap rate. Three of the four units are successfully utilized as short-term rentals via Airbnb, demonstrating a proven revenue model. The property's prime location across from Carl T. Hayden VA Hospital and near prestigious schools like Brophy & Xavier College Preparatory Schools, coupled with recent neighborhood improvements including new breweries and townhome developments, ensures strong demand and future appreciation potential. Each unit features upgraded interiors, including in-unit washer/dryers and private patios, along with newer HVAC systems. The asking price is $1,025,000, or $256,250 per unit, offering a compelling price-per-square-foot of $404. This turnkey investment allows for immediate income generation and the flexibility to continue the successful short-term rental strategy or transition to traditional apartment rentals.