Five-Site Multifamily
New
For Sale
Contact for pricing
505 STATE HWY 173 N, Hondo, TX 78861
Fully leased property combines two homes with three additional rental sites and established utility connections.
Property Size1,322 SF
Lot Size0.89 Acres
Price / SF$317.62
Days on Market4
Property Features for 505 STATE HWY 173 N
General Information
Standard status
Active
Size
1,322 SF
Lot size
0.89 Acres
Property subtype
Multifamily, Mixed Use
Occupancy
100%
Investment Type
Owner/User
Site & Location
Highway Access
Yes
Road Access
Yes
Utilities to Site
Yes
Units
Unit Mix
2 x 3BR/2BA
Multifamily Units
2
Building Details
Year Built
1974
Buildings
2
Stories
1
Units
2
Tenancy
Multi
Listing Agency:
Galm Real Estate, LLC
Listed By:
Kari Galm Menchaca · License #651976
(830) 931-0900
Source:
Crexi
Added: Aug 31
Changed: Sep 2
Last Checked: Sep 2 at 2:19PM
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 Galm Real Estate, LLC
Investment Insights
Based on property information with market context.
This multifamily property includes a 1,322-square-foot, three-bedroom, two-bath site-built home and a 1,456-square-foot, three-bedroom, two-bath manufactured home. Three additional rental sites accommodate RV or lot rentals, providing five separate leased locations within the property. The homes were built in 1974, and the property is fully rented.
Utility infrastructure includes three electric meters, two water meters, sewer clean-outs, and water hookups serving the individual sites. The property occupies approximately 0.89 acres with frontage along State Highway 173, a visible corner position, and access from a secondary road. It is located in Hondo near Highway 90, shopping, schools, and restaurants.
Utility infrastructure includes three electric meters, two water meters, sewer clean-outs, and water hookups serving the individual sites. The property occupies approximately 0.89 acres with frontage along State Highway 173, a visible corner position, and access from a secondary road. It is located in Hondo near Highway 90, shopping, schools, and restaurants.
Key Highlights
- Five separate rental sites on approximately 0.89 acres
- 1,322 square foot, 3‑bedroom, 2‑bath site‑built home
- 1,456 square foot, 3‑bedroom, 2‑bath manufactured home
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
$11,779
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
2.81%
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%
$235,580
$235.6K
Cap Rate 7%
$168,271
$168.3K
Cap Rate 9%
$130,878
$130.9K
Market Conditions
NOI Build-Up for 1,322 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
$23.8K $18.00/SF
− Vacancy
−$2.4K −$1.80/SF
EGI
$21.4K $16.20/SF
− OpEx
−$9.6K −$7.29/SF
NOI
$11.8K $8.91/SF
Area
Medina County, TX
Vacancy
10.00%
Lease Rate
$18.00 /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%
$235,580
Cap Rate 7%
$168,271
Cap Rate 9%
$130,878
Alternative Uses
Best Use
Apartment 5plus
$168.3K
$147.2K – $196.3K
NOI $11,779 @ 7.0% cap · market cap 2.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$337.2K
$295.1K – $393.4K
NOI $23,605 @ 7.0% cap · market cap 5.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
13
Businesses Nearby
Explore this area
Business Placement
Demographics for 78861, TX
13,298
Population
5,163
Households
2.6
Avg Household Size
39
Median Age
17%
College-Educated
82%
High-School Grad
490.7 sq mi
ZIP Area
27
Density / Sq Mi
$64,491
Median Household Income
$39,711
Median Earnings
$1,131
Median Rent
$210,100
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Multifamily property - Fully leased property combines two homes with three additional rental sites and established utility connections.
Where is this multifamily property located?
The property is located at 505 STATE HWY 173 N Hondo, TX.
What is the asking price?
The asking price for this property is $419,900.
What are key features of this property?
This property features: Five separate rental sites on approximately 0.89 acres; 1,322 square foot, 3‑bedroom, 2‑bath site‑built home; 1,456 square foot, 3‑bedroom, 2‑bath manufactured home
