Vacant Three-Unit
For Sale
$409,000
1504 Freeman Street, Houston, TX 77009
Three separate residences are offered vacant, with a consistent layout across the property and room for new leasing arrangements.
Property Size1,978 SF
Price / SF$206.77
Days on Market118
Property Features for 1504 Freeman Street
General Information
Standard status
Active
Size
1,978 SF
Property subtype
Multi-Family
Units
Unit Mix
3 x 2BR/1BA
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$6,103
Amenities
Yes
3
4
Owner
Corner Lot
5000
Appraiser
1978
Building Details
Building Size
1,978 SF
Year Built
1930
Stories
1
Listing Agency:
Intex Realty
(713) 824-2618
Listed By:
Donna Hines
(713) 824-2618
Source:
Garygreene
Added: Apr 29
Changed: Aug 24
Last Checked: Aug 24 at 3:14AM
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 Intex Realty
Investment Insights
Based on property information with market context.
Built in 1930, this triplex contains three separate residential units on a single lot. Each residence provides 2 bedrooms, 1 bathroom, and approximately 630 sq ft of living space. All three units are scheduled for delivery vacant, creating a clean starting point for an owner or operator to establish future occupancy.
The property is located in Houston’s inner-loop area near Downtown, The Heights, and the University of Houston-Downtown. Major redevelopment projects and new construction are identified in the surrounding neighborhood, adding relevant context for buyers evaluating the immediate area. The compact three-unit configuration offers a straightforward multifamily asset with uniform unit layouts.
The property is located in Houston’s inner-loop area near Downtown, The Heights, and the University of Houston-Downtown. Major redevelopment projects and new construction are identified in the surrounding neighborhood, adding relevant context for buyers evaluating the immediate area. The compact three-unit configuration offers a straightforward multifamily asset with uniform unit layouts.
Key Highlights
- Three separate units on a single lot
- Each unit includes 2 bedrooms and 1 bathroom
- Approximately 630 sq ft of living space per unit
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
$25,907
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
6.33%
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%
$518,140
$518.1K
Cap Rate 7%
$370,100
$370.1K
Cap Rate 9%
$287,856
$287.9K
Market Conditions
NOI Build-Up for 1,978 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
$39.2K $19.80/SF
− Vacancy
−$2.2K −$1.09/SF
EGI
$37.0K $18.71/SF
− OpEx
−$11.1K −$5.61/SF
NOI
$25.9K $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%
$518,140
Cap Rate 7%
$370,100
Cap Rate 9%
$287,856
Alternative Uses
Best Use
Multifamily LT 5
$370.1K
$323.8K – $431.8K
NOI $25,907 @ 7.0% cap · market cap 6.33%
Second Best
Apartment 5plus
$320.1K
$280.1K – $373.5K
NOI $22,409 @ 7.0% cap · market cap 5.48%
Theoretical Best
Office A
$508.6K
$445.1K – $593.4K
NOI $35,604 @ 7.0% cap · market cap 8.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
1,120
Businesses Nearby
Explore this area
Business Placement
Demographics for 77009, TX
36,425
Population
17,890
Households
2
Avg Household Size
37
Median Age
39%
College-Educated
78%
High-School Grad
6.2 sq mi
ZIP Area
5,875
Density / Sq Mi
$81,921
Median Household Income
$49,446
Median Earnings
$1,229
Median Rent
$403,600
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?
Triplex - Three separate residences are offered vacant, with a consistent layout across the property and room for new leasing arrangements.
Where is this triplex located?
The property is located at 1504 Freeman Street Houston, TX.
What is the asking price?
The asking price for this property is $409,000.
What are key features of this property?
This property features: Three separate units on a single lot; Each unit includes 2 bedrooms and 1 bathroom; Approximately 630 sq ft of living space per unit
