Refrigerated Food Distribution
For Sale
Contact for pricing
2818 FAY ST, Houston, TX 77023
Includes cold-storage facilities, a commercial kitchen, dedicated shipping space, and truck loading access.
Property Size15,463 SF
Lot Size0.69 Acres
Price / SF$103.47
Days on Market15
Property Features for 2818 FAY ST
General Information
Standard status
Active
Size
15,463 SF
Lot size
0.69 Acres
Property subtype
INDUSTRIAL
Warehouse & Industrial
Warehouse Space
14,520 SF
Office Build-Out
650 SF
Cold Storage
Yes
Additional Details
Highway Access
Yes
Listing Agency:
Carlos Garcia Realty
(713) 924-9100
Listed By:
Bill Garcia · License #174458
(281) 235-9904
Source:
Moodyscre
Added: Sep 9
Changed: Sep 19
Last Checked: Sep 21 at 9:51AM
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 Carlos Garcia Realty
Investment Insights
Based on property information with market context.
This food distribution property combines a 14,520 SF warehouse with a 650 SF office on a 30,000 SF lot. The facility includes a walk-in cooler, walk-in freezer, kitchen with a grease trap, and a separated shipping area equipped with double truck wells.
The property is located at 2818 Fay St in Houston, within one mile of the University of Houston. Access to Hwy 35 and the Gulf Freeway, I-45 South, is available via Old Spanish Trail, supporting connectivity across the city. An additional 15,000 SF lot on Lidstone St. is also offered separately.
The property is located at 2818 Fay St in Houston, within one mile of the University of Houston. Access to Hwy 35 and the Gulf Freeway, I-45 South, is available via Old Spanish Trail, supporting connectivity across the city. An additional 15,000 SF lot on Lidstone St. is also offered separately.
Key Highlights
- 14,520 SF warehouse with 650 SF office
- Walk‑in cooler and walk‑in freezer
- Kitchen includes a grease trap
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
$113,813
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
7.11%
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%
$2,276,260
$2.3M
Cap Rate 7%
$1,625,900
$1.6M
Cap Rate 9%
$1,264,589
$1.3M
Market Conditions
NOI Build-Up for 15,463 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
$148.4K $9.60/SF
− Vacancy
−$14.5K −$0.94/SF
EGI
$133.9K $8.66/SF
− OpEx
−$20.1K −$1.30/SF
NOI
$113.8K $7.36/SF
Area
Houston, TX
Vacancy
9.80%
Lease Rate
$9.60 /SF/Yr
Expense Ratio
15.00%
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%
$2,276,260
Cap Rate 7%
$1,625,900
Cap Rate 9%
$1,264,589
Alternative Uses
Best Use
Warehouse
$1.63M
$1.42M – $1.90M
NOI $113,813 @ 7.0% cap · market cap 7.11%
Second Best
Industrial
$1.25M
$1.09M – $1.45M
NOI $87,188 @ 7.0% cap · market cap 5.45%
Theoretical Best
Office A
$3.98M
$3.48M – $4.64M
NOI $278,334 @ 7.0% cap · market cap 17.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
716
Businesses Nearby
Explore this area
Business Placement
Demographics for 77023, TX
26,780
Population
11,850
Households
2.3
Avg Household Size
36
Median Age
24%
College-Educated
75%
High-School Grad
5.5 sq mi
ZIP Area
4,869
Density / Sq Mi
$50,018
Median Household Income
$35,730
Median Earnings
$1,079
Median Rent
$279,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in Houston, TX
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Frequently Asked Questions
What type of property is this?
Refrigerated & cold storage - Includes cold-storage facilities, a commercial kitchen, dedicated shipping space, and truck loading access.
Where is this refrigerated & cold storage located?
The property is located at 2818 FAY ST Houston, TX.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: 14,520 SF warehouse with 650 SF office; Walk‑in cooler and walk‑in freezer; Kitchen includes a grease trap
