Commercial Property on Gulf
For Sale
$1,800,000
511 Gulf Bank Rd 5, Houston, TX 77037
4.5-acre commercial property with existing structures and expansion potential.
Property Size5,800 SF
Lot Size4.51 Acres
Price / SF$300
Days on Market163
Property Features for 511 Gulf Bank Rd 5
General Information
Standard status
Active
Size
5,800 SF
Lot size
4.51 Acres
Property subtype
Investment
Lease Term
Month-to-month
Taxes and HOA fees
Annual Taxes
$9,746
Building Details
Building Size
5,800 SF
Year Built
1960
Stories
1
Units
1
Listing Agency:
CB&A, Realtors
Listed By:
Rafael Perez · License #0573024
(832) 642-7246
Source:
Elliman
Added: Mar 24
Changed: Aug 22
Last Checked: Sep 1 at 9:43PM
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 CB&A, Realtors
Investment Insights
Based on property information with market context.
This commercial property, located at 511 Gulf Bank, presents an opportunity for investors. The property spans over 4.5 acres and is suitable for developing a commercial building. It includes multiple detached dwellings and a metal shop, totaling over 6,000 square feet of space. This multi-family property offers room for growth. The property is situated on 2 lots measuring 196,590 square feet.
Key Highlights
- Prime location spanning over 4.5 acres, ideal for commercial development.
- Multi‑family property with existing tenants and expansion potential.
- Over 6,000 square feet of total space across multiple detached dwellings and a metal shop.
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
$79,200
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
4.40%
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%
$1,584,000
$1.6M
Cap Rate 7%
$1,131,429
$1.1M
Cap Rate 9%
$880,000
$880.0K
Market Conditions
NOI Build-Up for 6,000 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
$144.0K $24.00/SF
− Vacancy
−$17.3K −$2.88/SF
EGI
$126.7K $21.12/SF
− OpEx
−$47.5K −$7.92/SF
NOI
$79.2K $13.20/SF
Area
Houston, TX
Vacancy
12.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,584,000
Cap Rate 7%
$1,131,429
Cap Rate 9%
$880,000
Alternative Uses
Best Use
Mixed Use
$1.13M
$990.0K – $1.32M
NOI $79,200 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.54M
$1.35M – $1.80M
NOI $108,000 @ 7.0% cap · market cap 6.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
377
Businesses Nearby
Explore this area
Business Placement
Demographics for 77037, TX
19,569
Population
5,312
Households
3.7
Avg Household Size
31
Median Age
7%
College-Educated
51%
High-School Grad
6.2 sq mi
ZIP Area
3,156
Density / Sq Mi
$46,176
Median Household Income
$30,779
Median Earnings
$1,056
Median Rent
$160,500
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - 4.5-acre commercial property with existing structures and expansion potential.
Where is this commercial land located?
The property is located at 511 Gulf Bank Rd 5 Houston, TX.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Prime location spanning over 4.5 acres, ideal for commercial development.; Multi‑family property with existing tenants and expansion potential.; Over 6,000 square feet of total space across multiple detached dwellings and a metal shop.
