Fifth-Floor Residential Income
For Sale
$475,000
945 E PLAYA DEL NORTE Drive 5020, Tempe, AZ 85288
Waterfront condominium with two bedrooms, resort amenities, private balconies, and dedicated garage parking.
Property Size1,287 SF
Days on Market13
Property Features for 945 E PLAYA DEL NORTE Drive 5020
General Information
Standard status
Active
Size
1,287 SF
Total Parking Spaces
2
Property subtype
Apartment
Additional Details
Highway Access
Yes
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$3,258
Amenities
pool
spa
fitness center
secure access
private balconies
full-size laundry
additional storage
Building Details
Building Size
1,287 SF
Year Built
2008
Listing Agency:
US Metro Realty
(888) 313-0001
Listed By:
Kalim Qamar
(888) 313-0001
Source:
Jcluxuryresidential
Added: Aug 9
Changed: Aug 21
Last Checked: Aug 21 at 10:33AM
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 US Metro Realty
Investment Insights
Based on property information with market context.
This 2008 residential income property is a fifth-floor condominium at Tempe Town Lake with a bright, open split-bedroom layout. The home includes 2 bedrooms, 2 full baths, walk-in closets, and two private balconies oriented toward lake and city views. Its upgraded kitchen features granite countertops, dark wood cabinetry, stainless-steel appliances, and a gas cooktop. Full-size laundry, additional storage, and 2 dedicated garage spaces add practical functionality.
Community amenities include a resort-style pool, spa, fitness center, and secure access. The property is minutes from ASU, Downtown Tempe, dining, shopping, entertainment, recreation, and major freeways. Lease option and lease purchase terms are available.
Community amenities include a resort-style pool, spa, fitness center, and secure access. The property is minutes from ASU, Downtown Tempe, dining, shopping, entertainment, recreation, and major freeways. Lease option and lease purchase terms are available.
Key Highlights
- Fifth‑floor condominium at Tempe Town Lake with lake and city views
- 2 bedrooms, 2 full baths, walk‑in closets, and a split floor plan
- Upgraded kitchen with granite countertops, stainless‑steel appliances, and gas cooktop
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
$17,443
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
3.67%
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%
$348,860
$348.9K
Cap Rate 7%
$249,186
$249.2K
Cap Rate 9%
$193,811
$193.8K
Market Conditions
NOI Build-Up for 1,287 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
$33.7K $26.16/SF
− Vacancy
−$2.0K −$1.52/SF
EGI
$31.7K $24.64/SF
− OpEx
−$14.3K −$11.09/SF
NOI
$17.4K $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%
$348,860
Cap Rate 7%
$249,186
Cap Rate 9%
$193,811
Alternative Uses
Best Use
Apartment 5plus
$249.2K
$218.0K – $290.7K
NOI $17,443 @ 7.0% cap · market cap 3.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$404.7K
$354.1K – $472.2K
NOI $28,330 @ 7.0% cap · market cap 5.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
574
Businesses Nearby
Explore this area
Business Placement
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Waterfront condominium with two bedrooms, resort amenities, private balconies, and dedicated garage parking.
Where is this residential income property located?
The property is located at 945 E PLAYA DEL NORTE Drive 5020 Tempe, AZ.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: Fifth‑floor condominium at Tempe Town Lake with lake and city views; 2 bedrooms, 2 full baths, walk‑in closets, and a split floor plan; Upgraded kitchen with granite countertops, stainless‑steel appliances, and gas cooktop
