Building Details

Year Built 1979

Tenancy Multi

Listing Agency: RE/MAX Arbors b***@remax.net Show Phone

Listed By: Becky Charles · License #0655338

Source: Minteerteam

Added: Jul 31 Changed: Aug 29 Last Checked: Aug 30 at 8:02PM

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Investment Insights

Based on property information with market context.

This mixed-use property at 3651 Italy Ave in Bardwell combines residential and commercial space within a three-tenant configuration. The living area includes one bedroom and one bathroom. The shop portion is arranged as two separate areas, with one occupied by a cabinet shop and the other by a paint and body shop. Each commercial area has its own restroom.

Tenants are responsible for their individual utilities. Built in 1979, the property is near Lake Bardwell and includes both an established residential component and functional shop space. The combination of living quarters and two commercial areas supports its current mixed-use arrangement.

Key Highlights

• Three current tenants: one residential occupant and two commercial occupants
• One‑bedroom, one‑bath living area
• Shop component divided into two separate areas

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

$14,670

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

6.99%

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%

$293,400 $293.4K

Cap Rate 7%

$209,571 $209.6K

Cap Rate 9%

$163,000 $163.0K

Market Conditions

NOI Build-Up for 2,830 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

$23.0K $8.12/SF

− Vacancy

−$2.0K −$0.71/SF

EGI

$21.0K $7.41/SF

− OpEx

−$6.3K −$2.22/SF

NOI

$14.7K $5.18/SF

Area

Ellis County, TX

Vacancy

8.80%

Lease Rate

$8.12 /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%

$293,400

Cap Rate 7%

$209,571

Cap Rate 9%

$163,000

Alternative Uses

Best Use

Retail

$671.0K

$587.2K – $782.9K (±1% cap)

NOI $46,973 @ 7.0% cap · market cap 22.37%

Second Best

Mixed Use

$463.9K

$405.9K – $541.2K (±1% cap)

NOI $32,474 @ 7.0% cap · market cap 15.46%

Theoretical Best

Multifamily LT 5

$30.88M

$27.02M – $36.03M (±1% cap)

NOI $2,161,597 @ 7.0% cap · market cap 1,029.33%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Flex space

Suggested Use

Top Pick Building Supply Auto Repair Shop Auto Parts Store Storage Facility Butcher Big Box & Wholesale Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

100%

Occupancy

Multi-tenant

Tenancy

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

38

Businesses Nearby

Explore this area Business Placement

Demographics for 75101, TX

633

Population

280

Households

2.3

Avg Household Size

32

Median Age

10%

College-Educated

71%

High-School Grad

0.8 sq mi

ZIP Area

791

Density / Sq Mi

$56,797

Median Household Income

$36,250

Median Earnings

$1,269

Median Rent

$108,300

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Three current tenants occupy residential living space and two separately configured shop areas.

Where is this mixed-use property located?

The property is located at 3651 Italy Ave Bardwell, TX.

What is the asking price?

The asking price for this property is $210,000.

What are key features of this property?

This property features: Three current tenants: one residential occupant and two commercial occupants; One‑bedroom, one‑bath living area; Shop component divided into two separate areas