Mixed-Use Property with Residential
For Sale
$1,200,000
Pending
7528 Gainesville St, Houston, TX 77020
Versatile property featuring warehouse, office space, and residential apartments.
Property Size12,540 SF
Lot Size0.56 Acres
Days on Market174
Property Features for 7528 Gainesville St
General Information
Standard status
Pending
Size
12,540 SF
Lot size
0.56 Acres
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$4,228
Building Details
Building Size
12,540 SF
Year Built
1950
Stories
2
Listing Agency:
BOOM REAL ESTATE
(832) 814-4070
Listed By:
Tatum MacNaughton
(832) 814-4070
Source:
Elliman
Added: Mar 10
Changed: Aug 27
Last Checked: Aug 29 at 10:01AM
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 BOOM REAL ESTATE
Investment Insights
Based on property information with market context.
This mixed-use property offers 12,540 square feet of space on a 24,500 square foot lot, which is just over 0.56 acres. Currently operating as a diesel mechanic shop, the property includes 9,240 square feet of warehouse space and 3,300 square feet of office and additional shop spaces. There are two office areas suitable for industrial, auto, or service-based businesses. In addition to the commercial space, the property features two residential apartments. Each apartment includes two bedrooms, a bathroom, a kitchen, a living room, and flexible space that can be used as a home office or for extra storage. This property is located in Houston, Texas.
Key Highlights
- Mixed‑use property featuring warehouse, office/shop space, and two residential apartments.
- Large 12,540 sq ft building on a 24,500 sq ft lot (over 0.56 acres).
- 9,240 sq ft of warehouse space suitable for industrial, auto, or service‑based businesses.**
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
$92,298
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
7.69%
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%
$1,845,960
$1.8M
Cap Rate 7%
$1,318,543
$1.3M
Cap Rate 9%
$1,025,533
$1.0M
Market Conditions
NOI Build-Up for 12,540 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
$120.4K $9.60/SF
− Vacancy
−$11.8K −$0.94/SF
EGI
$108.6K $8.66/SF
− OpEx
−$16.3K −$1.30/SF
NOI
$92.3K $7.36/SF
Area
Houston, TX
Vacancy
9.80%
Lease Rate
$9.60 /SF/Yr
Expense Ratio
15.00%
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%
$1,845,960
Cap Rate 7%
$1,318,543
Cap Rate 9%
$1,025,533
Alternative Uses
Best Use
Mixed Use
$2.36M
$2.07M – $2.76M
NOI $165,528 @ 7.0% cap · market cap 13.79%
Second Best
Multifamily LT 5
$2.35M
$2.05M – $2.74M
NOI $164,245 @ 7.0% cap · market cap 13.69%
Theoretical Best
Office A
$3.22M
$2.82M – $3.76M
NOI $225,720 @ 7.0% cap · market cap 18.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
337
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
Market
Vacancy Rate% for Office in Houston, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Versatile property featuring warehouse, office space, and residential apartments.
Where is this mixed-use property located?
The property is located at 7528 Gainesville St Houston, TX.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Mixed‑use property featuring warehouse, office/shop space, and two residential apartments.; Large 12,540 sq ft building on a 24,500 sq ft lot (over 0.56 acres).; 9,240 sq ft of warehouse space suitable for industrial, auto, or service‑based businesses.**
