Mixed-Use Property with Bayou
For Sale
Contact for pricing
8628 Hwy 6, Hitchcock, TX 77563
Existing improvements include a residential structure, patios, parking, and frontage along Highland Bayou.
Property Size1,744 SF
Price / SF$243.69
Days on Market630
Property Features for 8628 Hwy 6
General Information
Standard status
Active
Size
1,744 SF
Property subtype
Land, Mixed Use, Office
Listing Agency:
Suntrust Realty
(713) 796-8611
Listed By:
Ram Garg · License #599860
Source:
Crexi
Added: Dec 9, 2024
Changed: Aug 30
Last Checked: Aug 30 at 2:37PM
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 Suntrust Realty
Investment Insights
Based on property information with market context.
This mixed-use property includes a 1,744-square-foot house on 1.55 acres, with hardwood flooring, granite surfaces, custom cabinetry, a breakfast bar, and expansive front and rear patios. The improvements also include a two-car garage, a two-car carport, a U-shaped driveway, and additional parking at the front. The pool requires repair, and central air conditioning remains to be added.
The property fronts Highway 6 and Highland Bayou, providing access from the highway and a water-oriented setting. It is near Hitchcock City Hall and approximately 10 miles from Galveston. The site may accommodate continued residential use or office use, while the existing house could be removed for a future apartment or motel project, subject to applicable approvals.
The property fronts Highway 6 and Highland Bayou, providing access from the highway and a water-oriented setting. It is near Hitchcock City Hall and approximately 10 miles from Galveston. The site may accommodate continued residential use or office use, while the existing house could be removed for a future apartment or motel project, subject to applicable approvals.
Key Highlights
- 1.55‑acre mixed‑use property with a 1,744‑square‑foot house
- Approximately 217 feet of frontage on Highway 6
- Approximately 320 feet of frontage along Highland Bayou
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
$17,266
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
4.06%
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%
$345,320
$345.3K
Cap Rate 7%
$246,657
$246.7K
Cap Rate 9%
$191,844
$191.8K
Market Conditions
NOI Build-Up for 1,744 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
$31.4K $18.00/SF
− Vacancy
−$3.8K −$2.16/SF
EGI
$27.6K $15.84/SF
− OpEx
−$10.4K −$5.94/SF
NOI
$17.3K $9.90/SF
Area
Galveston County, TX
Vacancy
12.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$345,320
Cap Rate 7%
$246,657
Cap Rate 9%
$191,844
Alternative Uses
Best Use
Mixed Use
$246.7K
$215.8K – $287.8K
NOI $17,266 @ 7.0% cap · market cap 4.06%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$19.55M
$17.11M – $22.81M
NOI $1,368,697 @ 7.0% cap · market cap 322.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
230
Businesses Nearby
Explore this area
Business Placement
Demographics for 77563, TX
9,778
Population
4,769
Households
2.1
Avg Household Size
43
Median Age
21%
College-Educated
88%
High-School Grad
44.2 sq mi
ZIP Area
221
Density / Sq Mi
$80,199
Median Household Income
$50,307
Median Earnings
$1,405
Median Rent
$198,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Existing improvements include a residential structure, patios, parking, and frontage along Highland Bayou.
Where is this mixed-use property located?
The property is located at 8628 Hwy 6 Hitchcock, TX.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 1.55‑acre mixed‑use property with a 1,744‑square‑foot house; Approximately 217 feet of frontage on Highway 6; Approximately 320 feet of frontage along Highland Bayou
