For Sale
$115,000,000

11 7Th StTempe, AZ 85281

Luxury Hotel, Net Lease, High ROI

Overview

Added:
Dec 11, 2024
Days on market:
115
This exceptional investment opportunity presents a 290-room Westin Tempe hotel, a 17-story, 290,383 square-foot building on a 0.85-acre lot. Located at 11 E 7th St, Tempe, AZ 85281, this prime property boasts a 100% occupancy rate and a strong net operating income (NOI) of $7,000,000, resulting in a 6.09% cap rate. The asking price is $115,000,000, translating to $396.03 per square foot. The property benefits from a 25-year absolute net lease with four 5-year option periods and 2% annual rent increases, secured by a strong multi-unit franchisee. Its strategic location in Tempe, adjacent to Arizona State University (enrollment exceeding 112,100 students), offers exceptional access to a vibrant student population and a thriving urban environment. Proximity to Phoenix Sky Harbor International Airport (PHX) and the Valley Metro Rail further enhances its appeal. The hotel, completed in 2021, is a 4-star establishment, providing luxurious accommodations. Nearby attractions include Sun Devil Stadium, Desert Financial Arena, and Tempe Town Lake. This is a rare opportunity to acquire a high-performing, luxury hotel asset with significant long-term growth potential in a rapidly expanding market. The property's strong tenant, long-term lease, and built-in rent increases provide a stable and inflation-resistant investment.

Highlights

  • Exceptional 25-year absolute NNN sale-leaseback opportunity with a strong multi-unit operator.
  • Trophy site in Tempe, AZ's ASU area, offering high density and strong demographics.
  • Brand new, 17-story Westin Hotel (290 rooms, rooftop pool/bar) built in 2021.
  • Tempe's rapid tech growth and Fortune 500 company expansion drive strong market fundamentals.
  • Managed by Crescent Hotels & Resorts, exceeding occupancy and performance projections.
  • Located in the Phoenix MSA, a top 50 place to live with significant population growth.

Property Details for 11 7Th St

Property type
Hospitality properties, Hotels
Square Feet
290,383 SF
Lot Size (sq. ft)
37,026 SF

Location Insight

City
Tempe
County
Maricopa
State
Arizona
Latitude
33.4229612
Longitude
-111.9392662
11 7Th St, Tempe, Arizona

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11 7Th St
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