Office Building With Net-Leased Anchor
For Sale
$2,200,000
121 Cut Off, Port Aransas, TX 78373
SINGLE_FAMILY - Port Aransas, TX
Property Size6,169 SF
Lot Size0.67 Acres
Price / SF$356.62
Days on Market222
Property Features for 121 Cut Off
General Information
Property type
Residential
Property subtype
Office
Zoning
Comm
Zoning description
Comm
Parking features
Off Street
Security features
Security
Subdivision
Balinese Flats-Pa
Lot features
Interior Lot, Level
Standard status
Active
APN
038700000010
Size
6,169 SF
Lot size
0.67 Acres
Taxes and HOA fees
Tax Description
BALINESE FLATS-PA LT 1
Legal Description
BALINESE FLATS-PA LT 1
Utilities
Heating system
Electric (Heating), Natural Gas, Central
Cooling system
Central Air, Gas (Cooling)
Amenities
salt water swimming pool
rooftop covered deck
on site laundry facility
lighted sign
Building Details
Year built
1979
Floors in Building
2
Building materials
Block, HardiplankType, Concrete, Stucco
Roof type
Shingle
Listing Agency:
RE/MAX Coastal Living · RE/MAX International
(361) 749-2777
Listed By:
Marcus Starkey · License #0436531
(361) 815-2300
Added: Jan 2
Changed: Aug 3
Last Checked: Aug 12 at 11:06AM
MLS# 469213
Copyright © 2026 South Texas Multiple Listing Service, LLC. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This office building at 121 Cut Off includes a main building of approximately 4,489 SF plus four modern rental suites. The main building’s current use is 2,232 SF of office space with a full kitchen, and the entire office space has been leased to anchor tenant Stewart Title on a five-year net lease. An additional 1,637 SF Wellness Spa & Boutique would be available for new owner use or could be leased out, and the property also includes an on-site laundry facility.
The building includes a 620 SF one-bedroom apartment at the north end with a fenced-in yard, along with impact windows throughout. The roof was replaced in December 2017. There is also a 750 SF rooftop covered deck with views of the ship channel, and a lighted sign that was recently rebuilt/refurbished.
The property sits on a 0.67-acre (28,974 SF) lot and features four studio suites in back built in 2019, currently operated as vacation rentals. Those suites include a 11 x 30 pool, plus two additional storage rooms. Construction is Hardi board, and the property is in an X flood zone with elevation over 13'.
The building includes a 620 SF one-bedroom apartment at the north end with a fenced-in yard, along with impact windows throughout. The roof was replaced in December 2017. There is also a 750 SF rooftop covered deck with views of the ship channel, and a lighted sign that was recently rebuilt/refurbished.
The property sits on a 0.67-acre (28,974 SF) lot and features four studio suites in back built in 2019, currently operated as vacation rentals. Those suites include a 11 x 30 pool, plus two additional storage rooms. Construction is Hardi board, and the property is in an X flood zone with elevation over 13'.
Key Highlights
- Main building approx. 4,489 SF with 2,232 SF office space leased to Stewart Title on a five‑year net lease
- Additional 1,637 SF Wellness Spa & Boutique available for new owners use or leasing
- Four studio suites built in 2019 currently used as vacation rentals
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
$103,189
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
4.69%
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%
$2,063,780
$2.1M
Cap Rate 7%
$1,474,129
$1.5M
Cap Rate 9%
$1,146,544
$1.1M
Market Conditions
NOI Build-Up for 6,169 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
$189.5K $30.72/SF
− Vacancy
−$51.9K −$8.42/SF
EGI
$137.6K $22.30/SF
− OpEx
−$34.4K −$5.58/SF
NOI
$103.2K $16.73/SF
Area
Nueces County, TX
Vacancy
27.40%
Lease Rate
$30.72 /SF/Yr
Expense Ratio
25.00%
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%
$2,063,780
Cap Rate 7%
$1,474,129
Cap Rate 9%
$1,146,544
Alternative Uses
Best Use
Office B
$1.47M
$1.29M – $1.72M
NOI $103,189 @ 7.0% cap · market cap 4.69%
Second Best
Apartment 5plus
$474.7K
$415.3K – $553.8K
NOI $33,226 @ 7.0% cap · market cap 1.51%
Theoretical Best
Warehouse
$6.38M
$5.58M – $7.45M
NOI $446,784 @ 7.0% cap · market cap 20.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
629
Businesses Nearby
Explore this area
Business Placement
Demographics for 78373, TX
3,134
Population
5,614
Households
0.6
Avg Household Size
56
Median Age
38%
College-Educated
95%
High-School Grad
18.8 sq mi
ZIP Area
167
Density / Sq Mi
$90,000
Median Household Income
$52,353
Median Earnings
$2,226
Median Rent
$518,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Main building office space is leased to Stewart Title on a five-year net lease, with additional wellness space and rental suites.
Where is this office building located?
The property is located at 121 Cut Off Port Aransas, TX.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Main building approx. 4,489 SF with 2,232 SF office space leased to Stewart Title on a five‑year net lease; Additional 1,637 SF Wellness Spa & Boutique available for new owners use or leasing; Four studio suites built in 2019 currently used as vacation rentals
