Modern Multifamily Asset in
For Sale
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1318 Avenue A, South Houston, TX 77587
2020 construction, 97% occupancy, improving operations, seller financing available.
Property Size38,930 SF
Price / SF$118.16
Days on Market166
Property Features for 1318 Avenue A
General Information
Standard status
Active
Size
38,930 SF
Class
B
Property subtype
Multifamily
Zoning
NZ
Building Details
Year Built
2020
Listing Agency:
Partners
(713) 316-7059
Listed By:
Matt Bean · License #TX 663805
Source:
Crexi
Added: Mar 12
Changed: Aug 8
Last Checked: Aug 8 at 2:52PM
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 Partners
Investment Insights
Based on property information with market context.
The multifamily asset at 1318 Avenue A, South Houston, TX 77587, constructed in 2020, offers a modern residential opportunity with strong in-place occupancy. The property has a 97% occupancy rate and is undergoing ongoing interior upgrades. Recent operational improvements have led to a significant rise in monthly NOI over the past six months, following the owner's assumption of management responsibilities. This transition included the removal of underperforming tenants and improved leasing quality, demonstrating operational stabilization and an improved tenant profile without sacrificing occupancy. A flooring upgrade program is currently underway, converting units to vinyl flooring upon tenant turnover, with 6 units converted thus far. This phased approach modernizes interiors, enhances durability, and supports continued rent growth with minimal operational disruption. Seller financing is available, offering flexible acquisition structuring and potential interest rate advantages relative to conventional financing. The property size is 38930 square feet.
Key Highlights
- High Occupancy: 97% occupancy rate
- Seller Financing: Flexible acquisition structuring available
- Improving NOI: Net Operating Income has significantly increased
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
$258,107
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
5.61%
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%
$5,162,140
$5.2M
Cap Rate 7%
$3,687,243
$3.7M
Cap Rate 9%
$2,867,856
$2.9M
Market Conditions
NOI Build-Up for 38,930 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
$518.5K $13.32/SF
− Vacancy
−$49.3K −$1.27/SF
EGI
$469.3K $12.05/SF
− OpEx
−$211.2K −$5.42/SF
NOI
$258.1K $6.63/SF
Area
Harris County, TX
Vacancy
9.50%
Lease Rate
$13.32 /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%
$5,162,140
Cap Rate 7%
$3,687,243
Cap Rate 9%
$2,867,856
Alternative Uses
Best Use
Apartment 5plus
$3.69M
$3.23M – $4.30M
NOI $258,107 @ 7.0% cap · market cap 5.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.63M
$9.30M – $12.40M
NOI $744,092 @ 7.0% cap · market cap 16.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,001
Businesses Nearby
Explore this area
Business Placement
Demographics for 77587, TX
16,179
Population
5,549
Households
2.9
Avg Household Size
32
Median Age
9%
College-Educated
60%
High-School Grad
3.1 sq mi
ZIP Area
5,219
Density / Sq Mi
$52,407
Median Household Income
$30,669
Median Earnings
$1,174
Median Rent
$177,000
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - 2020 construction, 97% occupancy, improving operations, seller financing available.
Where is this apartment building located?
The property is located at 1318 Avenue A South Houston, TX.
What is the asking price?
The asking price for this property is $4,600,000.
What are key features of this property?
This property features: High Occupancy: 97% occupancy rate; Seller Financing: Flexible acquisition structuring available; Improving NOI: Net Operating Income has significantly increased
