3-Unit
For Sale
$275,000
7525 Canal St, Houston, TX 77012
Three-unit residential property near Houston’s Texas Medical Center, University of Houston, and Downtown.
Property Size2,209 SF
Price / SF$124.49
Days on Market27
Property Features for 7525 Canal St
General Information
Standard status
Active
Size
2,209 SF
Property subtype
Multi-Family
Additional Details
Multifamily Units
3
Building Details
Year Built
1935
Listing Agency:
Thompson & Associates
(832) 276-3715
Listed By:
Blanca Limon · License #0690462
Source:
Nova-era
Added: Aug 3
Changed: Aug 28
Last Checked: Aug 29 at 12:31PM
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 Thompson & Associates
Investment Insights
Based on property information with market context.
This three-unit residential property contains 2209 square feet and was built in 1935. Its triplex configuration provides three separate residential units within one property, offering an established multifamily format in Houston.
The property is located at 7525 Canal St in Houston, Texas 77012. It is approximately 15–20 minutes from the Texas Medical Center, University of Houston, and Downtown Houston, placing the property within convenient reach of three major local destinations.
The property is located at 7525 Canal St in Houston, Texas 77012. It is approximately 15–20 minutes from the Texas Medical Center, University of Houston, and Downtown Houston, placing the property within convenient reach of three major local destinations.
Key Highlights
- Three‑unit triplex configuration
- 2209 square feet of property size
- Built in 1935
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
$25,026
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
9.10%
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%
$500,520
$500.5K
Cap Rate 7%
$357,514
$357.5K
Cap Rate 9%
$278,067
$278.1K
Market Conditions
NOI Build-Up for 2,209 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
$48.5K $21.96/SF
− Vacancy
−$3.0K −$1.36/SF
EGI
$45.5K $20.60/SF
− OpEx
−$20.5K −$9.27/SF
NOI
$25.0K $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%
$500,520
Cap Rate 7%
$357,514
Cap Rate 9%
$278,067
Alternative Uses
Best Use
Multifamily LT 5
$413.3K
$361.7K – $482.2K
NOI $28,933 @ 7.0% cap · market cap 10.52%
Second Best
Apartment 5plus
$357.5K
$312.8K – $417.1K
NOI $25,026 @ 7.0% cap · market cap 9.10%
Theoretical Best
Office A
$568.0K
$497.0K – $662.7K
NOI $39,762 @ 7.0% cap · market cap 14.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
714
Businesses Nearby
Explore this area
Business Placement
Demographics for 77012, TX
18,397
Population
6,867
Households
2.7
Avg Household Size
33
Median Age
10%
College-Educated
59%
High-School Grad
3.9 sq mi
ZIP Area
4,717
Density / Sq Mi
$48,287
Median Household Income
$34,012
Median Earnings
$944
Median Rent
$127,400
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?
Triplex - Three-unit residential property near Houston’s Texas Medical Center, University of Houston, and Downtown.
Where is this triplex located?
The property is located at 7525 Canal St Houston, TX.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: Three‑unit triplex configuration; 2209 square feet of property size; Built in 1935
