Amarillo Hotel Repositioning
For Sale
Under Contract
$2,975,000
1620 E INTERSTATE 40, Amarillo, TX 79103
COMMERCIAL - Amarillo, TX
Property Size33,968 SF
Price / SF$87.58
Days on Market89
Property Features for 1620 E INTERSTATE 40
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
0400 - SE Amarillo in City Limits
Directions
Exit Ross heading East on I-40 property is on the South.
Subdivision
0400 - Ross Post Office
Standard status
Active Under Contract
APN
213803
Size
33,968 SF
Taxes and HOA fees
Tax Description
AIR PARK # 14, LOT 009, BLK 0002, & LOT 11 UNIT 18, 3.1700 ACRES
Legal Description
AIR PARK # 14, LOT 009, BLK 0002, & LOT 11 UNIT 18, 3.1700 ACRES
Building Details
Year built
1985
Listing Agency:
FIMC Commercial Realty
(806) 358-7151
Listed By:
Kirk Chudej · License #604402
(806) 358-7151
Added: May 15
Changed: Aug 4
Last Checked: Aug 11 at 7:06PM
MLS# 26-3709
Copyright © 2026 Amarillo Association of REALTORS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This commercial property in Amarillo, Texas, presents a rare adaptive reuse and value-add investment opportunity. The asset is a fully furnished, 107-key hotel. It offers multiple repositioning strategies, including workforce housing for AI/data center construction labor and extended-stay operations for corporate tenants. Another option is repositioning as a traditional or flagged hotel. Investment upside is supported by growing demand tied to major AI and data infrastructure projects, including the Fermi America AI Data Center. The existing furnishings, flexible use potential, and multiple exit strategies provide strong downside protection and long-term upside. The property contains 33,968 square feet.
Key Highlights
- 107‑key fully furnished hotel
- Existing furnishings provide immediate value
- Proximity to Fermi America AI Data Center
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
$159,735
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
5.37%
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%
$3,194,700
$3.2M
Cap Rate 7%
$2,281,929
$2.3M
Cap Rate 9%
$1,774,833
$1.8M
Market Conditions
NOI Build-Up for 33,968 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
$448.4K $13.20/SF
− Vacancy
−$112.1K −$3.30/SF
EGI
$336.3K $9.90/SF
− OpEx
−$176.5K −$5.20/SF
NOI
$159.7K $4.70/SF
Area
Amarillo, TX
Vacancy
25.00%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
52.50%
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%
$3,194,700
Cap Rate 7%
$2,281,929
Cap Rate 9%
$1,774,833
Alternative Uses
Best Use
Hotel Hospitality
$2.28M
$2.00M – $2.66M
NOI $159,735 @ 7.0% cap · market cap 5.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.58M
$6.64M – $8.85M
NOI $530,879 @ 7.0% cap · market cap 17.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
380
Businesses Nearby
Explore this area
Business Placement
Demographics for 79103, TX
10,532
Population
3,784
Households
2.8
Avg Household Size
34
Median Age
13%
College-Educated
80%
High-School Grad
4.3 sq mi
ZIP Area
2,449
Density / Sq Mi
$55,885
Median Household Income
$35,862
Median Earnings
$1,197
Median Rent
$123,900
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Hotel - 107-key hotel with repositioning strategies in growing Amarillo market.
Where is this hotel located?
The property is located at 1620 E INTERSTATE 40 Amarillo, TX.
What is the asking price?
The asking price for this property is $2,975,000.
What are key features of this property?
This property features: 107‑key fully furnished hotel; Existing furnishings provide immediate value; Proximity to Fermi America AI Data Center
