Mixed-Use Property with
For Sale
Contact for pricing
601-602 Fairview Street, Houston, TX 77006
Combines short-term rentals, long-term tenancy, and an existing restaurant component.
Property Size9,648 SF
Price / SF$393.86
Days on Market202
Property Features for 601-602 Fairview Street
General Information
Standard status
Active
Size
9,648 SF
Property subtype
Mixed Use
Building Details
Tenancy
Multi
Listing Agency:
Evan Howell Properties
Listed By:
Shana Hill · License #648719
Source:
Crexi
Added: Feb 9
Changed: Aug 29
Last Checked: Aug 29 at 10:56PM
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 Evan Howell Properties
Investment Insights
Based on property information with market context.
This mixed-use property brings together hospitality, rental, and restaurant uses across parcels at 601 Fairview St, 604 Fairview St, and 2316 Hopkins St. The property includes 9 short-term rental units, three long-term tenants, and the original Barnaby’s restaurant.
The parcels meet at the intersection of Fairview St and Hopkins St in Houston, placing the components within a connected multi-parcel setting. The restaurant is currently occupied, with flexibility to negotiate a new long-term lease with the tenant. The combination of short-term accommodations, established long-term tenancy, and a restaurant use creates a varied commercial property profile.
The parcels meet at the intersection of Fairview St and Hopkins St in Houston, placing the components within a connected multi-parcel setting. The restaurant is currently occupied, with flexibility to negotiate a new long-term lease with the tenant. The combination of short-term accommodations, established long-term tenancy, and a restaurant use creates a varied commercial property profile.
Key Highlights
- 9 short‑term rental units
- Three long‑term tenants
- Original Barnaby’s restaurant included
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
$148,483
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
3.91%
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%
$2,969,660
$3.0M
Cap Rate 7%
$2,121,186
$2.1M
Cap Rate 9%
$1,649,811
$1.6M
Market Conditions
NOI Build-Up for 9,648 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
$208.4K $21.60/SF
− Vacancy
−$10.4K −$1.08/SF
EGI
$198.0K $20.52/SF
− OpEx
−$49.5K −$5.13/SF
NOI
$148.5K $15.39/SF
Area
Houston, TX
Vacancy
5.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
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%
$2,969,660
Cap Rate 7%
$2,121,186
Cap Rate 9%
$1,649,811
Alternative Uses
Best Use
Specialty Retail
$2.12M
$1.86M – $2.47M
NOI $148,483 @ 7.0% cap · market cap 3.91%
Second Best
Mixed Use
$1.82M
$1.59M – $2.12M
NOI $127,354 @ 7.0% cap · market cap 3.35%
Theoretical Best
Office A
$2.48M
$2.17M – $2.89M
NOI $173,664 @ 7.0% cap · market cap 4.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,141
Businesses Nearby
Explore this area
Business Placement
Demographics for 77006, TX
24,129
Population
16,654
Households
1.4
Avg Household Size
36
Median Age
80%
College-Educated
98%
High-School Grad
2.3 sq mi
ZIP Area
10,491
Density / Sq Mi
$102,003
Median Household Income
$73,275
Median Earnings
$1,761
Median Rent
$599,500
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 - Combines short-term rentals, long-term tenancy, and an existing restaurant component.
Where is this mixed-use property located?
The property is located at 601-602 Fairview Street Houston, TX.
What is the asking price?
The asking price for this property is $3,800,000.
What are key features of this property?
This property features: 9 short‑term rental units; Three long‑term tenants; Original Barnaby’s restaurant included
