Fully Leased Triplex For
For Sale
$375,000
6905 Palestine Street, Houston, TX 77020
Triplex with over $36k annual revenue, fully leased.
Property Size2,764 SF
Days on Market155
Property Features for 6905 Palestine Street
General Information
Standard status
Active
Size
2,764 SF
Property subtype
Triplex
Building Details
Building Size
2,764 SF
Year Built
1936
Stories
1
Listing Agency:
Brookhaven Realty
Listed By:
Josh Jenkins
(979) 575-7559
Source:
Renesorola.kw
Added: Apr 9
Changed: Sep 9
Last Checked: Sep 10 at 5:26AM
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 Brookhaven Realty
Investment Insights
Based on property information with market context.
This is a fully leased triplex generating over $36,000 in annual revenue. Unit A features two bedrooms and one bathroom and is leased at $1200 per month. Unit B offers two bedrooms and two bathrooms and is leased at $1140 per month. Unit C includes one bedroom, one bathroom, and a private patio, and is leased at $695 per month. Each unit is equipped with its own washer and dryer. The property has a bike score of 78, indicating it is very bikeable, and a walk score of 79, indicating it is very walkable. The transit score is 50, indicating good transit options.
Key Highlights
- Fully leased triplex generating over $36k in annual revenue.
- All units include in‑unit washer and dryer.
- Unit A: 2‑bed, 1‑bath, leased at $1200/month.
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
$31,314
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
8.35%
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%
$626,280
$626.3K
Cap Rate 7%
$447,343
$447.3K
Cap Rate 9%
$347,933
$347.9K
Market Conditions
NOI Build-Up for 2,764 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
$60.7K $21.96/SF
− Vacancy
−$3.8K −$1.36/SF
EGI
$56.9K $20.60/SF
− OpEx
−$25.6K −$9.27/SF
NOI
$31.3K $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%
$626,280
Cap Rate 7%
$447,343
Cap Rate 9%
$347,933
Alternative Uses
Best Use
Multifamily LT 5
$517.2K
$452.5K – $603.4K
NOI $36,202 @ 7.0% cap · market cap 9.65%
Second Best
Apartment 5plus
$447.3K
$391.4K – $521.9K
NOI $31,314 @ 7.0% cap · market cap 8.35%
Theoretical Best
Office A
$710.7K
$621.9K – $829.2K
NOI $49,752 @ 7.0% cap · market cap 13.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
620
Businesses Nearby
Explore this area
Business Placement
Demographics for 77020, TX
24,846
Population
10,054
Households
2.5
Avg Household Size
35
Median Age
13%
College-Educated
65%
High-School Grad
7.8 sq mi
ZIP Area
3,185
Density / Sq Mi
$49,481
Median Household Income
$32,573
Median Earnings
$942
Median Rent
$133,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Triplex - Triplex with over $36k annual revenue, fully leased.
Where is this triplex located?
The property is located at 6905 Palestine Street Houston, TX.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: Fully leased triplex generating over $36k in annual revenue.; All units include in‑unit washer and dryer.; Unit A: 2‑bed, 1‑bath, leased at $1200/month.
