Two-Unit Duplex with Gated
New
For Sale
$475,000
8323 Observatory Street A/B, Houston, TX 77088
Each residence combines a split-floor-plan layout with custom storage and contemporary kitchen finishes.
Property Size3,440 SF
Price / SF$138.08
Days on Market2
Property Features for 8323 Observatory Street A/B
General Information
Standard status
Active
Size
3,440 SF
Property subtype
Multi-Family
Units
Unit Mix
2 x 3BR/2.5BA
Multifamily Units
2
Taxes and HOA fees
Annual Taxes
$1,236
Amenities
Fully Fenced with Iron Gate
Tile,Vinyl
Yes
3
Low-Emissivity Windows
Washer Hookup,Dryer Hookup
Builder
Quartz Counters,Ceiling Fan(s),Programmable Thermostat
Partial
Subdivision
Insulated Doors
3650
Two
25x146
Appraiser
Electric Gate
3440
Building Details
Building Size
3,440 SF
Year Built
2026
Buildings
1
Stories
2
Listing Agency:
Global Investment Realty
(713) 965-0812
Listed By:
Shad Bogany
(713) 828-6075
Source:
Garygreene
Added: Sep 26
Last Checked: Sep 26 at 2:32PM
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 Global Investment Realty
Investment Insights
Based on property information with market context.
This 2026 duplex contains two residences within 3,440 square feet. Each unit has three bedrooms and 2.5 bathrooms, with a split-floor-plan design. First-floor ceilings reach 10 feet. Interior finishes and features include quartz counters, Shaker cabinets, stainless steel appliances, custom built-in closets, and LED mirrors. Tile and vinyl flooring are also listed. The property has a fully fenced perimeter and an electric gate.
The property is located on Observatory Street in Houston. No HOA is indicated.
The property is located on Observatory Street in Houston. No HOA is indicated.
Key Highlights
- Two units, each with 3 bedrooms and 2.5 bathrooms
- 3,440 square feet; built in 2026
- 10‑foot ceilings on the first floor
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
$38,972
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
8.20%
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%
$779,440
$779.4K
Cap Rate 7%
$556,743
$556.7K
Cap Rate 9%
$433,022
$433.0K
Market Conditions
NOI Build-Up for 3,440 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
$75.5K $21.96/SF
− Vacancy
−$4.7K −$1.36/SF
EGI
$70.9K $20.60/SF
− OpEx
−$31.9K −$9.27/SF
NOI
$39.0K $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%
$779,440
Cap Rate 7%
$556,743
Cap Rate 9%
$433,022
Alternative Uses
Best Use
Multifamily LT 5
$643.7K
$563.2K – $750.9K
NOI $45,056 @ 7.0% cap · market cap 9.49%
Second Best
Apartment 5plus
$556.7K
$487.2K – $649.5K
NOI $38,972 @ 7.0% cap · market cap 8.20%
Theoretical Best
Office A
$884.6K
$774.0K – $1.03M
NOI $61,920 @ 7.0% cap · market cap 13.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
240
Businesses Nearby
Explore this area
Business Placement
Demographics for 77088, TX
54,320
Population
18,500
Households
2.9
Avg Household Size
35
Median Age
13%
College-Educated
72%
High-School Grad
11.1 sq mi
ZIP Area
4,894
Density / Sq Mi
$52,549
Median Household Income
$32,015
Median Earnings
$1,177
Median Rent
$173,900
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?
Duplex - Each residence combines a split-floor-plan layout with custom storage and contemporary kitchen finishes.
Where is this duplex located?
The property is located at 8323 Observatory Street A/B Houston, TX.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: Two units, each with 3 bedrooms and 2.5 bathrooms; 3,440 square feet; built in 2026; 10‑foot ceilings on the first floor
