Mixed-Use Property with Three
For Sale
$480,000
1137 Freeport Street, Houston, TX 77015
Three-suite property offers a restaurant suite, car radio shop space, and an upstairs studio apartment, plus concrete parking.
Property Size3,400 SF
Days on Market136
Property Features for 1137 Freeport Street
General Information
Standard status
Active
Size
3,400 SF
Property subtype
Multi Family,Multiple Detached Dwellings
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$16,329
Building Details
Building Size
3,400 SF
Year Built
2000
Listing Agency:
Century 21 Garlington & Assoc.
Listed By:
Ana Henriquez
(832) 260-3136
Source:
Nancyalmodovar
Added: Apr 24
Changed: Sep 3
Last Checked: Sep 5 at 6:42AM
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 Century 21 Garlington & Assoc.
Investment Insights
Based on property information with market context.
This mixed-use commercial property includes three distinct suites designed for different uses. Suite A is a large, open restaurant space with updated interiors, a total of two bathrooms (his and hers), and a newly installed roof for the unit. Suite B is configured for a car radio shop with an open floor plan, one bathroom, and a storage room. Suite C is an upstairs studio apartment with one bedroom and one bathroom, currently being updated. In addition, a cabin on-site is used as storage.
The property is offered for sale with ample concrete parking space available for day-to-day operations.
Overall, the building presents flexible in-place configurations for income-producing tenancy across commercial and residential-style living space, alongside dedicated on-site storage.
The property is offered for sale with ample concrete parking space available for day-to-day operations.
Overall, the building presents flexible in-place configurations for income-producing tenancy across commercial and residential-style living space, alongside dedicated on-site storage.
Key Highlights
- Three distinct commercial suites plus an upstairs studio apartment in a property built in 2000
- Suite A (Restaurant): large open area with 2 bathrooms (his and hers) and a new roof installed
- Suite B (Car radio shop): open floor plan with 1 bathroom and a 1 storage room
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
$19,171
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
3.99%
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%
$383,420
$383.4K
Cap Rate 7%
$273,871
$273.9K
Cap Rate 9%
$213,011
$213.0K
Market Conditions
NOI Build-Up for 3,400 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
$30.6K $9.00/SF
− Vacancy
−$3.2K −$0.95/SF
EGI
$27.4K $8.06/SF
− OpEx
−$8.2K −$2.42/SF
NOI
$19.2K $5.64/SF
Area
Houston, TX
Vacancy
10.50%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
30.00%
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%
$383,420
Cap Rate 7%
$273,871
Cap Rate 9%
$213,011
Alternative Uses
Best Use
Specialty Retail
$747.5K
$654.1K – $872.1K
NOI $52,326 @ 7.0% cap · market cap 10.90%
Second Best
Retail
$658.6K
$576.3K – $768.4K
NOI $46,103 @ 7.0% cap · market cap 9.60%
Theoretical Best
Office A
$874.3K
$765.0K – $1.02M
NOI $61,200 @ 7.0% cap · market cap 12.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
767
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77015, TX
57,106
Population
19,961
Households
2.9
Avg Household Size
31
Median Age
11%
College-Educated
70%
High-School Grad
20.7 sq mi
ZIP Area
2,759
Density / Sq Mi
$57,324
Median Household Income
$34,477
Median Earnings
$1,169
Median Rent
$164,700
Median Home Value
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Three-suite property offers a restaurant suite, car radio shop space, and an upstairs studio apartment, plus concrete parking.
Where is this conventional restaurant located?
The property is located at 1137 Freeport Street Houston, TX.
What is the asking price?
The asking price for this property is $480,000.
What are key features of this property?
This property features: Three distinct commercial suites plus an upstairs studio apartment in a property built in 2000; Suite A (Restaurant): large open area with 2 bathrooms (his and hers) and a new roof installed; Suite B (Car radio shop): open floor plan with 1 bathroom and a 1 storage room
