Mixed-Use Building with
For Sale
Contact for pricing
515 22nd Street, Galveston, TX 77550
Mixed-use zoning accommodates a commercial building with two upstairs residential apartments.
Property Size5,940 SF
Price / SF$147.31
Days on Market58
Property Features for 515 22nd Street
General Information
Standard status
Active
Size
5,940 SF
Property subtype
Retail, Mixed Use
Zoning
Mixed-use
Units
Unit Mix
2 x 2BR/2BA
Multifamily Units
2
Building Details
Year Built
1940
Buildings
1
Listing Agency:
Cottrell Realty LLC
(281) 910-6660
Listed By:
Jonathan Cottrell · License #TX 614288
Source:
Crexi
Added: Jul 6
Changed: Aug 31
Last Checked: Sep 1 at 11:52AM
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 Cottrell Realty LLC
Investment Insights
Based on property information with market context.
Built in 1940, this approximately 5,940-square-foot mixed-use property combines commercial space with two upstairs residential apartments. Each apartment includes two bedrooms and two bathrooms, creating a multi-component layout within a single building. The property is zoned Mixed-use and supports a range of commercial configurations, including retail, office, restaurant, and hospitality uses as identified for the site.
The building is located at 515 22nd Street in Galveston's Historic District, within walking distance of The Strand Historic District, The Grand 1894 Opera House, MOD Coffeehouse, Rudy & Paco Restaurant, boutique shopping, galleries, entertainment venues, and additional dining options. Its downtown setting places commercial and residential components near established destinations and year-round tourism activity.
The building is located at 515 22nd Street in Galveston's Historic District, within walking distance of The Strand Historic District, The Grand 1894 Opera House, MOD Coffeehouse, Rudy & Paco Restaurant, boutique shopping, galleries, entertainment venues, and additional dining options. Its downtown setting places commercial and residential components near established destinations and year-round tourism activity.
Key Highlights
- Approximately 5,940 square feet of mixed‑use commercial space
- Two upstairs apartments, each with 2 bedrooms and 2 bathrooms
- Mixed‑use zoning
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
$79,988
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
9.14%
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%
$1,599,760
$1.6M
Cap Rate 7%
$1,142,686
$1.1M
Cap Rate 9%
$888,756
$888.8K
Market Conditions
NOI Build-Up for 5,940 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
$121.2K $20.40/SF
− Vacancy
−$6.9K −$1.16/SF
EGI
$114.3K $19.24/SF
− OpEx
−$34.3K −$5.77/SF
NOI
$80.0K $13.47/SF
Area
Galveston County, TX
Vacancy
5.70%
Lease Rate
$20.40 /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%
$1,599,760
Cap Rate 7%
$1,142,686
Cap Rate 9%
$888,756
Alternative Uses
Best Use
Apartment 5plus
$57.76M
$50.54M – $67.39M
NOI $4,043,355 @ 7.0% cap · market cap 462.10%
Second Best
Retail
$1.14M
$999.9K – $1.33M
NOI $79,988 @ 7.0% cap · market cap 9.14%
Theoretical Best
Multifamily LT 5
$66.60M
$58.27M – $77.70M
NOI $4,661,733 @ 7.0% cap · market cap 532.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
2,060
Businesses Nearby
Explore this area
Business Placement
Demographics for 77550, TX
24,247
Population
15,811
Households
1.5
Avg Household Size
41
Median Age
33%
College-Educated
87%
High-School Grad
7.6 sq mi
ZIP Area
3,190
Density / Sq Mi
$46,262
Median Household Income
$35,800
Median Earnings
$1,182
Median Rent
$283,800
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?
Mixed-use property - Mixed-use zoning accommodates a commercial building with two upstairs residential apartments.
Where is this mixed-use property located?
The property is located at 515 22nd Street Galveston, TX.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: Approximately 5,940 square feet of mixed‑use commercial space; Two upstairs apartments, each with 2 bedrooms and 2 bathrooms; Mixed‑use zoning
