Berry St Multifamily Investment
For Sale
Contact for pricing
2819 Berry St, Houston, TX 77004
Value-add multifamily property near University of Houston and Texas Southern.
Property Size9,226 SF
Price / SF$130.07
Days on Market174
Property Features for 2819 Berry St
General Information
Standard status
Active
Size
9,226 SF
Class
C
Property subtype
Multifamily
Zoning
NZ
Building Details
Year Built
1947
Listing Agency:
ReMax Commercial Real Estate Advisors
(773) 387-9168
Listed By:
Charles Patawaran, CCIM · License #TX 763861
Source:
Crexi
Added: Mar 2
Changed: Aug 8
Last Checked: Jul 22 at 2:30PM
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 ReMax Commercial Real Estate Advisors
Investment Insights
Based on property information with market context.
Located minutes from the University of Houston and Texas Southern University, 2819 Berry St presents a value-add investment opportunity. The property consists entirely of spacious 2-bedroom, 1-bathroom units. Seven units have been recently renovated and are leased at market rents of $1,200/month. The remaining five classic units provide further potential to boost net operating income through strategic upgrades. The property features on-site parking and a tenant laundry facility. It offers proximity to major universities, public transportation, and downtown Houston, making it attractive to students and young professionals. The current owner has invested over $20,000 in critical infrastructure improvements, including repairs to the sewer line and plumbing system beneath the building. The seller is shifting focus toward more passive investments and is looking to exit this value-add project early. The property offers both stability and significant growth potential in a rapidly evolving submarket. The property size is 9,226 square feet.
Key Highlights
- Value‑add investment opportunity with potential to increase NOI through strategic upgrades to five classic units.
- Seven units are already leased at market rents of $1,200/month, providing immediate income.
- Excellent location near the University of Houston, Texas Southern University, public transportation, and downtown Houston.
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
$104,523
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
8.71%
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%
$2,090,460
$2.1M
Cap Rate 7%
$1,493,186
$1.5M
Cap Rate 9%
$1,161,367
$1.2M
Market Conditions
NOI Build-Up for 9,226 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
$202.6K $21.96/SF
− Vacancy
−$12.6K −$1.36/SF
EGI
$190.0K $20.60/SF
− OpEx
−$85.5K −$9.27/SF
NOI
$104.5K $11.33/SF
Area
Houston, TX
Vacancy
6.20%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
45.00%
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%
$2,090,460
Cap Rate 7%
$1,493,186
Cap Rate 9%
$1,161,367
Alternative Uses
Best Use
Apartment 5plus
$1.49M
$1.31M – $1.74M
NOI $104,523 @ 7.0% cap · market cap 8.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.37M
$2.08M – $2.77M
NOI $166,068 @ 7.0% cap · market cap 13.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,203
Businesses Nearby
Explore this area
Business Placement
Demographics for 77004, TX
37,005
Population
18,321
Households
2
Avg Household Size
31
Median Age
57%
College-Educated
96%
High-School Grad
5.2 sq mi
ZIP Area
7,116
Density / Sq Mi
$65,901
Median Household Income
$55,909
Median Earnings
$1,320
Median Rent
$384,100
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?
Apartment building - Value-add multifamily property near University of Houston and Texas Southern.
Where is this apartment building located?
The property is located at 2819 Berry St Houston, TX.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Value‑add investment opportunity with potential to increase NOI through strategic upgrades to five classic units.; Seven units are already leased at market rents of $1,200/month, providing immediate income.; Excellent location near the University of Houston, Texas Southern University, public transportation, and downtown Houston.
