Mixed-Use Property with Three
For Sale
$359,900
507 Louisiana Ave, Midland, TX 79701
A central business district property combining office space with multiple residential units and renovation needs.
Property Size1,316 SF
Price / SF$273.48
Days on Market3295
Property Features for 507 Louisiana Ave
General Information
Standard status
Active
Size
1,316 SF
Property subtype
General Commercial
Property Condition
Severity
Repairs Needed
Evidence
DOES NEED SOME WORK
Additional Details
Office Units
1
Amenities
Electric
3
City Road, Paved Road.
Building Details
Year Built
1930
Stories
1
Listing Agency:
Fathom Realty
(432) 967-8411
Listed By:
Kelli Panthaky
(432) 967-8411
Source:
Xome
Added: Aug 24, 2017
Changed: Aug 31
Last Checked: Aug 31 at 1:56PM
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 Fathom Realty
Investment Insights
Based on property information with market context.
Built in 1930, this mixed-use property includes a 1,316-square-foot main residence configured most recently for office use. The main space contains two bedrooms and one bathroom, while three separate apartments each provide one bedroom, one bathroom, and 604 square feet.
The property is located at 507 W Louisiana Ave in Midland’s central business district. Paved city-road access serves the site, and the building requires work, providing a clear opportunity to address its existing condition across the office and residential components.
The property is located at 507 W Louisiana Ave in Midland’s central business district. Paved city-road access serves the site, and the building requires work, providing a clear opportunity to address its existing condition across the office and residential components.
Key Highlights
- Main building includes 1,316 SF with 2 bedrooms and 1 bathroom
- Three apartments, each with 604 SF, 1 bedroom, and 1 bathroom
- Main space was most recently used as an office
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
$15,918
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
4.42%
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%
$318,360
$318.4K
Cap Rate 7%
$227,400
$227.4K
Cap Rate 9%
$176,867
$176.9K
Market Conditions
NOI Build-Up for 1,316 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
$25.3K $19.20/SF
− Vacancy
−$4.0K −$3.07/SF
EGI
$21.2K $16.13/SF
− OpEx
−$5.3K −$4.03/SF
NOI
$15.9K $12.10/SF
Area
Midland, TX
Vacancy
16.00%
Lease Rate
$19.20 /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%
$318,360
Cap Rate 7%
$227,400
Cap Rate 9%
$176,867
Alternative Uses
Best Use
Office B
$227.4K
$199.0K – $265.3K
NOI $15,918 @ 7.0% cap · market cap 4.42%
Second Best
Mixed Use
$224.5K
$196.5K – $262.0K
NOI $15,718 @ 7.0% cap · market cap 4.37%
Theoretical Best
Office A
$310.4K
$271.6K – $362.2K
NOI $21,730 @ 7.0% cap · market cap 6.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Location Intelligence
Trade Area within ½ mile
2,210
Businesses Nearby
Explore this area
Business Placement
Demographics for 79701, TX
29,748
Population
11,393
Households
2.6
Avg Household Size
33
Median Age
19%
College-Educated
73%
High-School Grad
12.1 sq mi
ZIP Area
2,459
Density / Sq Mi
$57,679
Median Household Income
$36,213
Median Earnings
$1,336
Median Rent
$204,000
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?
Mixed-use property - A central business district property combining office space with multiple residential units and renovation needs.
Where is this mixed-use property located?
The property is located at 507 Louisiana Ave Midland, TX.
What is the asking price?
The asking price for this property is $359,900.
What are key features of this property?
This property features: Main building includes 1,316 SF with 2 bedrooms and 1 bathroom; Three apartments, each with 604 SF, 1 bedroom, and 1 bathroom; Main space was most recently used as an office
