Mixed-Use Property with 3
For Sale
$480,000
1137 Freeport Street, Houston, TX 77015
Three-suite property combines restaurant, retail, and an upstairs residential component with concrete parking.
Property Size3,400 SF
Days on Market147
Property Features for 1137 Freeport Street
General Information
Standard status
Active
Size
3,400 SF
Property subtype
Multi Family,Multiple Detached Dwellings
Taxes and HOA fees
Annual Taxes
$16,329
Building Details
Building Size
3,400 SF
Year Built
2000
Tenancy
Multi
Listing Agency:
Century 21 Garlington & Assoc.
(832) 260-3136
Listed By:
Ana Henriquez · License #0629334
(832) 260-3136
Source:
Mpowerrealtygroup
Added: Mar 17
Changed: Aug 10
Last Checked: Aug 10 at 6:57AM
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.
Built in 2000, this mixed-use property includes three distinct suites plus a separate cabin currently used for storage. The ground-floor restaurant suite features a large open area, two bathrooms, and a new roof. A second commercial suite offers an open layout, one bathroom, and a storage room, with flexibility for an audio-focused business or another retail use. An upstairs residential suite includes one bedroom and one bathroom and is undergoing updates.
Concrete parking serves the property, providing on-site parking for the commercial spaces. The additional cabin is currently used as storage and expands the property's existing utility.
Concrete parking serves the property, providing on-site parking for the commercial spaces. The additional cabin is currently used as storage and expands the property's existing utility.
Key Highlights
- Three distinct suites within a mixed‑use property
- Restaurant suite with large open area, two bathrooms, and a new roof
- Second commercial suite has open floor plan, one bathroom, and one 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
$38,519
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
8.02%
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%
$770,380
$770.4K
Cap Rate 7%
$550,271
$550.3K
Cap Rate 9%
$427,989
$428.0K
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
$74.7K $21.96/SF
− Vacancy
−$4.6K −$1.36/SF
EGI
$70.0K $20.60/SF
− OpEx
−$31.5K −$9.27/SF
NOI
$38.5K $11.33/SF
Area
Houston, TX
Vacancy
6.20%
Lease Rate
$21.96 /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%
$770,380
Cap Rate 7%
$550,271
Cap Rate 9%
$427,989
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
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
667
Businesses Nearby
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
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Three-suite property combines restaurant, retail, and an upstairs residential component with concrete parking.
Where is this mixed-use property 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 suites within a mixed‑use property; Restaurant suite with large open area, two bathrooms, and a new roof; Second commercial suite has open floor plan, one bathroom, and one storage room
