Gated Four-Unit Apartment
For Sale
$850,000
1540 Hawthorne St Unit 4, Houston, TX 77006
Two-story income property with one-bedroom residences, gated parking, and shared laundry facilities.
Property Size2,730 SF
Price / SF$311.36
Days on Market39
Property Features for 1540 Hawthorne St Unit 4
General Information
Standard status
Active
Size
2,730 SF
Property subtype
Multi-Family
Units
Unit Mix
4 x 1BR/1BA
Multifamily Units
4
Amenities
gated parking
on-site laundry
Building Details
Year Built
1927
Buildings
1
Stories
2
Listing Agency:
Pacific Investment Corporation
(713) 443-4844
Listed By:
Hieu Nguyen
Source:
Nova-era
Added: Jul 24
Changed: Aug 28
Last Checked: Aug 30 at 8:53PM
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 Pacific Investment Corporation
Investment Insights
Based on property information with market context.
This two-story quadplex contains four approximately 1-bedroom, 1-bath residences within a gated property. Each unit includes a kitchen, living room, closet, and combined living and dining area. Original hardwood flooring, large windows, vintage cabinetry, gas ranges, refrigerators, dishwashers, and tile-surround tub and shower combinations are present across the property. The building dates to 1927 and encompasses approximately 2,730 square feet.
Gated off-street parking and a shared on-site laundry facility serve the residents. The property is located at 1540 Hawthorne St Unit 4 in Houston, Texas, within the Montrose area. It is offered in as-is condition, with no repairs planned. Tenant privacy is requested, and showings require a letter of intent or contract.
Gated off-street parking and a shared on-site laundry facility serve the residents. The property is located at 1540 Hawthorne St Unit 4 in Houston, Texas, within the Montrose area. It is offered in as-is condition, with no repairs planned. Tenant privacy is requested, and showings require a letter of intent or contract.
Key Highlights
- Four‑unit property with approximately 2,730 square feet
- Four 1‑bedroom, 1‑bath units in a two‑story building
- Built in 1927
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
$35,757
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
4.21%
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%
$715,140
$715.1K
Cap Rate 7%
$510,814
$510.8K
Cap Rate 9%
$397,300
$397.3K
Market Conditions
NOI Build-Up for 2,730 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
$54.1K $19.80/SF
− Vacancy
−$3.0K −$1.09/SF
EGI
$51.1K $18.71/SF
− OpEx
−$15.3K −$5.61/SF
NOI
$35.8K $13.10/SF
Area
Houston, TX
Vacancy
5.50%
Lease Rate
$19.80 /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%
$715,140
Cap Rate 7%
$510,814
Cap Rate 9%
$397,300
Alternative Uses
Best Use
Multifamily LT 5
$510.8K
$447.0K – $596.0K
NOI $35,757 @ 7.0% cap · market cap 4.21%
Second Best
Apartment 5plus
$441.8K
$386.6K – $515.5K
NOI $30,929 @ 7.0% cap · market cap 3.64%
Theoretical Best
Office A
$702.0K
$614.3K – $819.0K
NOI $49,140 @ 7.0% cap · market cap 5.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
3,073
Businesses Nearby
Explore this area
Business Placement
Demographics for 77006, TX
24,129
Population
16,654
Households
1.4
Avg Household Size
36
Median Age
80%
College-Educated
98%
High-School Grad
2.3 sq mi
ZIP Area
10,491
Density / Sq Mi
$102,003
Median Household Income
$73,275
Median Earnings
$1,761
Median Rent
$599,500
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?
Quadplex - Two-story income property with one-bedroom residences, gated parking, and shared laundry facilities.
Where is this quadplex located?
The property is located at 1540 Hawthorne St Unit 4 Houston, TX.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Four‑unit property with approximately 2,730 square feet; Four 1‑bedroom, 1‑bath units in a two‑story building; Built in 1927
