IHOP-Anchored Retail Shopping
For Sale
$7,350,000
5710 FM 1960 W, Houston, TX 77069
IHOP-anchored shopping center with substantial FM 1960 frontage and strong vehicle traffic exposure.
Property Size29,470 SF
Price / SF$249.41
Days on Market56
Property Features for 5710 FM 1960 W
General Information
Standard status
Active
Size
29,470 SF
Property subtype
Shopping Strip
Additional Details
Cap Rate
7.4%
Traffic Count
50,000 vehicles/day
Amenities
Significant Upside Potential: Non-Anchor Rents Average $16.65/SF (38 Percent Below Market)
Priced Below-Replacement Cost: $250 Per Square Foot
Property is Anchored by Strong-Performing IHOP Restaurant
Desirable Straight-In-Line Configuration with Ample Parking: ±700 Feet of Frontage to FM 1960 Road West (± 50,000 Vehicles Per Day)
Dense Submarket Boasts Approximately 115,000 Residents Within 3 Miles and Average Household Income of Approximately $100,000
Building Details
Building Size
29,470 SF
Year Built
1991
Listing Agency:
Houston Office
(713) 452-4257
Listed By:
Gus Lagos · License #License(s): TX: 419197
(713) 452-4257
Source:
Marcusmillichap
Added: Jun 28
Changed: Aug 19
Last Checked: Aug 21 at 3:56AM
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 Houston Office
Investment Insights
Based on property information with market context.
Champions Shopping Center is an IHOP-anchored retail property offering 29,470 square feet of leasable space. The center’s visibility is supported by more than 700 feet of frontage along FM 1960 Road West (also known as Cypress Creek Parkway), placing it directly on a heavily traveled retail corridor. The offering notes a day-one cap rate of 7.40% and describes a rent roll with a range of rents, including many leases below market.
The property is located at 5710 FM 1960 Road West in Houston, Texas, in the Champions submarket of North Houston. The center is positioned near the intersection of FM 1960 Road West and Champion Forest Drive. The materials cite approximately 50,000 vehicles per day on FM 1960 Road West. Nearby tenancy referenced includes Wells Fargo, CVS, Starbucks, Lowes, Randalls, Barnes & Noble, and J. Crew.
For retailers, this configuration can support businesses that benefit from high-frequency drive-by exposure and an established anchored environment. For investors and buyers, the stated rent profile provides a basis for underwriting targeted to bring in-place rents closer to market levels, with the offering estimating a pro forma cap rate above 9% if rents are increased.
The property is located at 5710 FM 1960 Road West in Houston, Texas, in the Champions submarket of North Houston. The center is positioned near the intersection of FM 1960 Road West and Champion Forest Drive. The materials cite approximately 50,000 vehicles per day on FM 1960 Road West. Nearby tenancy referenced includes Wells Fargo, CVS, Starbucks, Lowes, Randalls, Barnes & Noble, and J. Crew.
For retailers, this configuration can support businesses that benefit from high-frequency drive-by exposure and an established anchored environment. For investors and buyers, the stated rent profile provides a basis for underwriting targeted to bring in-place rents closer to market levels, with the offering estimating a pro forma cap rate above 9% if rents are increased.
Key Highlights
- IHOP‑anchored retail shopping center at 5710 FM 1960 Road West, Houston, TX
- 29,470 SF of leasable area; built in 1991
- Over 700 ft of frontage on FM 1960 Road West (Cypress Creek Parkway) with approx. 50,000 vehicles per day traffic counts
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
$399,602
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
5.44%
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%
$7,992,040
$8.0M
Cap Rate 7%
$5,708,600
$5.7M
Cap Rate 9%
$4,440,022
$4.4M
Market Conditions
NOI Build-Up for 29,470 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
$604.7K $20.52/SF
− Vacancy
−$33.9K −$1.15/SF
EGI
$570.9K $19.37/SF
− OpEx
−$171.3K −$5.81/SF
NOI
$399.6K $13.56/SF
Area
Houston, TX
Vacancy
5.60%
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%
$7,992,040
Cap Rate 7%
$5,708,600
Cap Rate 9%
$4,440,022
Alternative Uses
Best Use
Retail
$5.71M
$5.00M – $6.66M
NOI $399,602 @ 7.0% cap · market cap 5.44%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.58M
$6.63M – $8.84M
NOI $530,460 @ 7.0% cap · market cap 7.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
50,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
1,498
Businesses Nearby
Explore this area
Business Placement
Demographics for 77069, TX
19,299
Population
9,399
Households
2.1
Avg Household Size
41
Median Age
47%
College-Educated
96%
High-School Grad
4.7 sq mi
ZIP Area
4,106
Density / Sq Mi
$73,599
Median Household Income
$44,721
Median Earnings
$1,487
Median Rent
$320,200
Median Home Value
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - IHOP-anchored shopping center with substantial FM 1960 frontage and strong vehicle traffic exposure.
Where is this strip mall located?
The property is located at 5710 FM 1960 W Houston, TX.
What is the asking price?
The asking price for this property is $7,350,000.
What are key features of this property?
This property features: IHOP‑anchored retail shopping center at 5710 FM 1960 Road West, Houston, TX; 29,470 SF of leasable area; built in 1991; Over 700 ft of frontage on FM 1960 Road West (Cypress Creek Parkway) with approx. 50,000 vehicles per day traffic counts
