Nine-House Multifamily
New
For Sale
$1,100,000
7603 Alcove Avenue # A-d, Lubbock, TX 79407
Existing rental houses generate current income alongside plans for future property redevelopment.
Property Size9,752 SF
Lot Size4.00 Acres
Price / SF$112.80
Days on Market5
Property Features for 7603 Alcove Avenue # A-d
General Information
Standard status
Active
Size
9,752 SF
Lot size
4.00 Acres
Property subtype
Multi-Family
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Gross Income
$101,400
Land Use
residential, commercial
Multifamily Units
9
Building Details
Year Built
1956
Buildings
9
Listing Agency:
Progressive Properties
(806) 794-7777
Listed By:
Brandon Tyler · License #0542831
Source:
Raftercrossrealty
Added: Aug 25
Changed: Aug 28
Last Checked: Aug 28 at 8:25AM
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 Progressive Properties
Investment Insights
Based on property information with market context.
This multifamily property covers 4± acres and includes nine rental houses. The existing residential improvements generate rental income while the broader site is evaluated for future redevelopment. The property was built in 1956 and is identified at 7603 Alcove Avenue # A-d, Lubbock, Texas 79407.
Access is available immediately to US-82/62, also known as the Marsha Sharp Fwy. United Supermarkets is planned across the street, and Alcove Avenue is scheduled for widening. Established retail and dining uses surround the property, providing an established commercial setting for a site currently improved with residential rentals.
Access is available immediately to US-82/62, also known as the Marsha Sharp Fwy. United Supermarkets is planned across the street, and Alcove Avenue is scheduled for widening. Established retail and dining uses surround the property, providing an established commercial setting for a site currently improved with residential rentals.
Key Highlights
- 4±-acre multifamily property at 7603 Alcove Avenue # A‑d
- Nine rental houses currently improve the site
- Existing rentals generate ongoing income
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
$79,088
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
7.19%
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%
$1,581,760
$1.6M
Cap Rate 7%
$1,129,829
$1.1M
Cap Rate 9%
$878,756
$878.8K
Market Conditions
NOI Build-Up for 9,752 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
$153.3K $15.72/SF
− Vacancy
−$9.5K −$0.97/SF
EGI
$143.8K $14.75/SF
− OpEx
−$64.7K −$6.64/SF
NOI
$79.1K $8.11/SF
Area
Lubbock, TX
Vacancy
6.20%
Lease Rate
$15.72 /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%
$1,581,760
Cap Rate 7%
$1,129,829
Cap Rate 9%
$878,756
Alternative Uses
Best Use
Apartment 5plus
$1.13M
$988.6K – $1.32M
NOI $79,088 @ 7.0% cap · market cap 7.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.46M
$2.15M – $2.87M
NOI $172,095 @ 7.0% cap · market cap 15.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
9
Residential units
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
151
Businesses Nearby
Explore this area
Business Placement
Demographics for 79407, TX
23,208
Population
11,817
Households
2
Avg Household Size
32
Median Age
41%
College-Educated
92%
High-School Grad
75.9 sq mi
ZIP Area
306
Density / Sq Mi
$64,778
Median Household Income
$38,212
Median Earnings
$1,131
Median Rent
$200,700
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?
Multifamily property - Existing rental houses generate current income alongside plans for future property redevelopment.
Where is this multifamily property located?
The property is located at 7603 Alcove Avenue # A-d Lubbock, TX.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 4±-acre multifamily property at 7603 Alcove Avenue # A‑d; Nine rental houses currently improve the site; Existing rentals generate ongoing income
