Midland TX Investment
For Sale
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1200 W Scharbauer Dr, Midland, TX 79705
25-home portfolio with 100% tenant occupancy in Midland, TX.
Property Size4,650 SF
Price / SF$169.89
Days on Market896
Property Features for 1200 W Scharbauer Dr
General Information
Standard status
Active
Size
4,650 SF
Property subtype
Multifamily
Zoning
PD
Building Details
Year Built
1981
Listing Agency:
The Agency KPJ
(432) 553-7443
Listed By:
Kerri Payne James · License #TX 0591603
Source:
Crexi
Added: Mar 11, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:21AM
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 The Agency KPJ
Investment Insights
Based on property information with market context.
This offering presents an investment opportunity featuring a 25-home portfolio sale across several street locations in Midland, TX. The properties are currently under active leases with 100% tenant occupancy. The majority of the homes are 3-bed, 2-bath duplexes or townhomes, situated in subdivisions and neighborhoods. This portfolio may be suitable for corporate housing, given the presence of oil and gas corporations in the Midland/Odessa area. The rental portfolio package is also being sold as 6 separate portfolios, which includes 3 single-family residences on Scharbauer Dr. The property includes 4650 square feet of space.
Key Highlights
- Portfolio of 25 homes with active leases and 100% tenant occupancy.
- Located in Midland, TX, home to major Oil & Gas corporations.
- Strong potential for committed profit on corporate housing.
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
$41,550
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
5.26%
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%
$831,000
$831.0K
Cap Rate 7%
$593,571
$593.6K
Cap Rate 9%
$461,667
$461.7K
Market Conditions
NOI Build-Up for 4,650 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
$64.2K $13.80/SF
− Vacancy
−$4.8K −$1.04/SF
EGI
$59.4K $12.77/SF
− OpEx
−$17.8K −$3.83/SF
NOI
$41.6K $8.94/SF
Area
Midland, TX
Vacancy
7.50%
Lease Rate
$13.80 /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%
$831,000
Cap Rate 7%
$593,571
Cap Rate 9%
$461,667
Alternative Uses
Best Use
Multifamily LT 5
$593.6K
$519.4K – $692.5K
NOI $41,550 @ 7.0% cap · market cap 5.26%
Second Best
Apartment 5plus
$553.4K
$484.2K – $645.6K
NOI $38,738 @ 7.0% cap · market cap 4.90%
Theoretical Best
Office A
$1.10M
$959.8K – $1.28M
NOI $76,781 @ 7.0% cap · market cap 9.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
242
Businesses Nearby
Explore this area
Business Placement
Demographics for 79705, TX
44,138
Population
20,021
Households
2.2
Avg Household Size
33
Median Age
40%
College-Educated
91%
High-School Grad
79.4 sq mi
ZIP Area
556
Density / Sq Mi
$105,106
Median Household Income
$60,415
Median Earnings
$1,431
Median Rent
$329,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - 25-home portfolio with 100% tenant occupancy in Midland, TX.
Where is this duplex located?
The property is located at 1200 W Scharbauer Dr Midland, TX.
What is the asking price?
The asking price for this property is $790,000.
What are key features of this property?
This property features: Portfolio of 25 homes with active leases and 100% tenant occupancy.; Located in Midland, TX, home to major Oil & Gas corporations.; Strong potential for committed profit on corporate housing.
