Bay City Retail Strip
For Sale
Contact for pricing
3420 7th St, Bay City, TX 77414
Fully leased retail center with diverse tenants in Bay City.
Property Size5,825 SF
Price / SF$231.76
Days on Market138
Property Features for 3420 7th St
General Information
Standard status
Active
Size
5,825 SF
Property subtype
Retail
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$88,311
Building Details
Year Built
2003
Buildings
1
Stories
1
Units
3
Tenancy
Multi
Listing Agency:
Northmarq Capital, LLC
Listed By:
Riley Sharman · License #TX 0521260
Source:
Crexi
Added: Mar 27
Changed: Aug 8
Last Checked: Jul 16 at 7:53AM
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 Northmarq Capital, LLC
Investment Insights
Based on property information with market context.
This is a fully leased retail center located at 3420 7th Street, Bay City, TX 77414. Constructed in 2003, the property is a 5,825 square foot strip center. It features three suites, each approximately 1,900+ square feet. The tenant mix includes Verizon, Vape City, and State Farm. The leases are NNN with a weighted average lease term remaining (WALTR) of 3.5+ years. The property offers a hedge against inflation, with staggered lease expirations over the next 3.5 years. The retail center consists of three 1,900+ SF suites, making leasing easier.
Key Highlights
- 100% Leased Retail Center with Diverse Tenant Mix (Verizon, Vape City, State Farm)
- NNN Leases with 3.5+ Year Weighted Average Lease Term (WALTR)
- Easily Managed with Only 3 Tenants
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
$78,901
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
5.84%
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%
$1,578,020
$1.6M
Cap Rate 7%
$1,127,157
$1.1M
Cap Rate 9%
$876,678
$876.7K
Market Conditions
NOI Build-Up for 5,825 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
$119.5K $20.52/SF
− Vacancy
−$6.8K −$1.17/SF
EGI
$112.7K $19.35/SF
− OpEx
−$33.8K −$5.81/SF
NOI
$78.9K $13.55/SF
Area
Matagorda County, TX
Vacancy
5.70%
Lease Rate
$20.52 /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%
$1,578,020
Cap Rate 7%
$1,127,157
Cap Rate 9%
$876,678
Alternative Uses
Best Use
Retail
$1.13M
$986.3K – $1.32M
NOI $78,901 @ 7.0% cap · market cap 5.84%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$65.31M
$57.14M – $76.19M
NOI $4,571,481 @ 7.0% cap · market cap 338.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
228
Businesses Nearby
157k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 35%
Home Improvements & Furnishings 19%
Dining 15%
Shops & Services 14%
Walmart
Superstores
54,785 visits/mo
0.2 miles
Ace Hardware
Home Improvements & Furnishings
16,211 visits/mo
0.3 miles
Bealls
Apparel
10,524 visits/mo
0.4 miles
Murphy USA
Shops & Services
9,704 visits/mo
0.2 miles
TDECU
Shops & Services
9,694 visits/mo
0.3 miles
Demographics for 77414, TX
23,416
Population
12,254
Households
1.9
Avg Household Size
38
Median Age
24%
College-Educated
85%
High-School Grad
555.1 sq mi
ZIP Area
42
Density / Sq Mi
$57,545
Median Household Income
$35,819
Median Earnings
$991
Median Rent
$166,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Fully leased retail center with diverse tenants in Bay City.
Where is this strip mall located?
The property is located at 3420 7th St Bay City, TX.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 100% Leased Retail Center with Diverse Tenant Mix (Verizon, Vape City, State Farm); NNN Leases with 3.5+ Year Weighted Average Lease Term (WALTR); Easily Managed with Only 3 Tenants
