2950-2972 East 5th St - Sheraton Arms 12 Unit Apartment Building Offered at $1,425,000 at a 6.83% Cap Rate Tucson, AZ 85716

Located in central Tucson, within three miles of Downtown Tucson and UofA, Sheraton Arms presents a prime value-add investment opportunity with attractive seller financing available. The well-maintained 12-unit community offers strong potential for operational upside and long-term rental growth. Constructed with durable masonry, the property is surrounded by meticulously maintained landscaping and common areas, including a secure gated pool and BBQ area.
With 12 units – all 1BD/1BAs, Sheraton Arms has selected units that have undergone recent renovations, while there remains a significant opportunity for further interior upgrades to capture market-rate rents. Current renovated units feature updated vinyl flooring throughout and a new AC within the last 5 years. Residents can also enjoy modern kitchens with new stainless-steel appliances, dishwashers, updated cabinetry, and contemporary finishes throughout, along with enhanced living spaces in select units, including refreshed bedrooms and bathrooms. Residents benefit from shared laundry facilities and covered parking, further enhancing the property’s appeal. Continued renovation efforts under new ownership could significantly increase rental income, aligning rents with growing demand in the area.
Tenants currently pay electric and gas, while ownership covers common area utilities, water, sewer, and trash services. Expenses are partially offset through a successful RUBS program, allowing for cost-sharing and improved operational efficiency. The property fosters a vibrant, community-focused environment with well-maintained walkways, a swimming pool, and a picnic area with a barbecue grill.
Positioned near the University of Arizona, Sheraton Arms is a highly attractive housing option for students and young professionals. Its central location, strong demand drivers, and below-market rents present immediate investment upside, making it a compelling opportunity for investors seeking both short-term gains and long-term value appreciation.