107-Key Furnished
For Sale
Contact for pricing
1620 Interstate 40 E, Amarillo, TX 79103
Fully furnished lodging asset with potential for extended-stay or workforce-housing conversion.
Property Size33,968 SF
Price / SF$87.58
Days on Market119
Property Features for 1620 Interstate 40 E
General Information
Standard status
Active
Size
33,968 SF
Class
C
Property subtype
Hospitality
Investment Type
Value Add
Building Details
Year Built
1985
Stories
2
Units
107
Listing Agency:
FIMC Commercial Realty
(806) 358-7151
Listed By:
Kirk Chudej · License #TX 604402
Source:
Crexi
Added: May 6
Changed: Aug 30
Last Checked: Sep 1 at 1:34AM
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 FIMC Commercial Realty
Investment Insights
Based on property information with market context.
The property is a 107-key hotel at 1620 Interstate 40 E in Amarillo, Texas. Built in 1985, the asset is being offered with existing furnishings, allowing continued hotel use or consideration of alternative operating formats described for the property.
Potential repositioning concepts include extended-stay lodging, workforce housing, or continued operation as a traditional hotel. The address places the asset along Interstate 40 E, while the existing hotel configuration and furnishings provide a foundation for evaluating those alternatives.
Potential repositioning concepts include extended-stay lodging, workforce housing, or continued operation as a traditional hotel. The address places the asset along Interstate 40 E, while the existing hotel configuration and furnishings provide a foundation for evaluating those alternatives.
Key Highlights
- 107‑key hotel property
- Fully furnished asset
- Built in 1985
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
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Frequently Asked Questions
What type of property is this?
Hotel - Fully furnished lodging asset with potential for extended-stay or workforce-housing conversion.
Where is this hotel located?
The property is located at 1620 Interstate 40 E 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 hotel property; Fully furnished asset; Built in 1985
