Renovated 6-Unit Apartment
For Sale
Contact for pricing
6403 Illinois St, Houston, TX 77021
Three updated buildings provide leased apartment units with contemporary interior finishes and refreshed kitchens and bathrooms.
Property Size3,578 SF
Price / SF$349.36
Days on Market123
Property Features for 6403 Illinois St
General Information
Standard status
Active
Size
3,578 SF
Class
B
Property subtype
Multifamily
Occupancy
100%
Investment Type
Stabilized
Net Operating Income
$79,600
Additional Details
Highway Access
Yes
Multifamily Units
6
Building Details
Year Built
1950
Year Renovated
2026
Buildings
3
Stories
1
Units
6
Listing Agency:
KW Commercial Texas
Listed By:
Patricia Brand · License #640952
(832) 613-7860
Source:
Crexi
Added: May 4
Changed: Sep 1
Last Checked: Sep 1 at 6:58AM
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 KW Commercial Texas
Investment Insights
Based on property information with market context.
This multifamily offering comprises three apartment buildings containing six units across four separate addresses and two legal descriptions. Built in 1950, the 3,578-square-foot property has undergone renovations that include updated cabinetry, contemporary flooring, fresh interior paint, improved appliances, modern countertops, and tiled bathroom finishes. The buildings are currently fully leased, providing an occupied residential income property with refreshed interiors.
The addresses are 6323, 6325, 6327, and 6403 Illinois St. The property also offers access to major highways and downtown Houston, as stated in the listing information.
The addresses are 6323, 6325, 6327, and 6403 Illinois St. The property also offers access to major highways and downtown Houston, as stated in the listing information.
Key Highlights
- Three renovated apartment buildings across four separate addresses
- Six units currently leased and fully occupied
- 3,578 SF multifamily property built in 1950
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
$40,536
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
3.24%
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%
$810,720
$810.7K
Cap Rate 7%
$579,086
$579.1K
Cap Rate 9%
$450,400
$450.4K
Market Conditions
NOI Build-Up for 3,578 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
$78.6K $21.96/SF
− Vacancy
−$4.9K −$1.36/SF
EGI
$73.7K $20.60/SF
− OpEx
−$33.2K −$9.27/SF
NOI
$40.5K $11.33/SF
Area
Houston, TX
Vacancy
6.20%
Lease Rate
$21.96 /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%
$810,720
Cap Rate 7%
$579,086
Cap Rate 9%
$450,400
Alternative Uses
Best Use
Apartment 5plus
$579.1K
$506.7K – $675.6K
NOI $40,536 @ 7.0% cap · market cap 3.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$920.1K
$805.1K – $1.07M
NOI $64,404 @ 7.0% cap · market cap 5.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
774
Businesses Nearby
Explore this area
Business Placement
Demographics for 77021, TX
28,055
Population
12,819
Households
2.2
Avg Household Size
36
Median Age
34%
College-Educated
87%
High-School Grad
6.1 sq mi
ZIP Area
4,599
Density / Sq Mi
$45,034
Median Household Income
$38,041
Median Earnings
$1,193
Median Rent
$203,900
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?
Apartment building - Three updated buildings provide leased apartment units with contemporary interior finishes and refreshed kitchens and bathrooms.
Where is this apartment building located?
The property is located at 6403 Illinois St Houston, TX.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Three renovated apartment buildings across four separate addresses; Six units currently leased and fully occupied; 3,578 SF multifamily property built in 1950
