Horizon Plaza Retail Investment
For Sale
Contact for pricing
Pending
12320 BEECHNUT ST, Houston, TX
90% leased strip center in Houston's Alief district.
Property Size16,217 SF
Lot Size1.74 Acres
Days on Market1286
Property Features for 12320 BEECHNUT ST
General Information
Standard status
Pending
Size
16,217 SF
Lot size
1.74 Acres
Property subtype
RETAIL
Listing Agency:
World Wide Realty
Listed By:
Luke Thao Dinh
(832) 465-6197
Source:
Moodyscre
Added: Mar 1, 2023
Changed: Aug 9
Last Checked: Sep 7 at 6:12AM
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 World Wide Realty
Investment Insights
Based on property information with market context.
Horizon Plaza is a strategically located strip building near the corner of Beechnut Street and Cook Road, situated in the Alief and International District area of Houston, Texas. Constructed in 2007, the property features a 15,000 square foot leasable strip building on a 1.74-acre lot with 67 parking spaces. The property is currently 90% occupied with a mix of short-term and long-term tenants. Additional income is generated from a food truck and fresh water stand located in the parking lot. Anchored by a long-term church and daycare service, the property benefits from a dense population base of nearly 180,000 homes within a 5-mile radius and is located within an established housing market. The property size is 16,217 square feet.
Key Highlights
- Strategically located in the heart of Alief and International District area of Houston, Texas.
- 90% mix‑tenant leased building providing immediate income.
- Anchored by long‑term church and daycare tenants, ensuring stable rental income.
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
$219,896
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
8.80%
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%
$4,397,920
$4.4M
Cap Rate 7%
$3,141,371
$3.1M
Cap Rate 9%
$2,443,289
$2.4M
Market Conditions
NOI Build-Up for 16,217 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
$332.8K $20.52/SF
− Vacancy
−$18.6K −$1.15/SF
EGI
$314.1K $19.37/SF
− OpEx
−$94.2K −$5.81/SF
NOI
$219.9K $13.56/SF
Area
Houston, TX
Vacancy
5.60%
Lease Rate
$20.52 /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%
$4,397,920
Cap Rate 7%
$3,141,371
Cap Rate 9%
$2,443,289
Alternative Uses
Best Use
Retail
$3.14M
$2.75M – $3.66M
NOI $219,896 @ 7.0% cap · market cap 8.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.17M
$3.65M – $4.87M
NOI $291,906 @ 7.0% cap · market cap 11.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
517
Businesses Nearby
Explore this area
Business Placement
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?
Strip mall - 90% leased strip center in Houston's Alief district.
Where is this strip mall located?
The property is located at 12320 BEECHNUT ST Houston, TX.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Strategically located in the heart of Alief and International District area of Houston, Texas.; 90% mix‑tenant leased building providing immediate income.; Anchored by long‑term church and daycare tenants, ensuring stable rental income.
