Apartment Development Near Texas
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6990 SW 9th Ave, Amarillo, TX 79106
Ready-to-build 105-unit apartment complex near medical district.
Property Size127,340 SF
Price / SF$196.32
Days on Market659
Property Features for 6990 SW 9th Ave
General Information
Standard status
Active
Size
127,340 SF
Property subtype
Multifamily
Listing Agency:
Team West Realty Inc
(806) 223-8081
Listed By:
LOUIS HOMEN · License #TX0511255
Source:
Crexi
Added: Oct 18, 2024
Changed: Jul 6
Last Checked: Aug 7 at 7:38AM
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 Team West Realty Inc
Investment Insights
Based on property information with market context.
The Nine Apartments offer a development plan exceeding current standards, featuring a gated community to ensure tenant safety and security. Each of the 105 units will include a private balcony. The development includes a mix of one-bedroom units and larger three-bedroom, two-bath units. Planned amenities include a furnished clubhouse, a golf simulator, a tanning facility, and a fully equipped 24-hour fitness center. Party and conference rooms will also be available for resident use. The apartments will overlook the lakes and canyons surrounding Medi-Park, with access to scenic jogging trails. The location is near Texas Tech University Health Sciences Center at Amarillo, the Texas Tech University School of Veterinary Medicine, BSA and Northwest Texas Hospitals, BSA Harrington Cancer Center, Amarillo VA Healthcare System, and numerous healthcare centers and physician offices. A fourth new hospital is currently under construction. Restaurants and shopping centers are located within a few miles, including Westgate Mall to the south on Coulter St. and historic Route 66 to the east. The asking price includes land, architecture, and permits, making it shovel-ready. The property size is 127340 square feet.
Key Highlights
- Shovel‑ready development opportunity including land, architecture, and permits.
- Ideal location near Texas Tech University Health Sciences Center and other medical facilities.
- Gated community providing enhanced security.
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
$844,545
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
3.38%
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%
$16,890,900
$16.9M
Cap Rate 7%
$12,064,929
$12.1M
Cap Rate 9%
$9,383,833
$9.4M
Market Conditions
NOI Build-Up for 127,340 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
$1.62M $12.72/SF
− Vacancy
−$84.2K −$0.66/SF
EGI
$1.54M $12.06/SF
− OpEx
−$691.0K −$5.43/SF
NOI
$844.5K $6.63/SF
Area
Amarillo, TX
Vacancy
5.20%
Lease Rate
$12.72 /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%
$16,890,900
Cap Rate 7%
$12,064,929
Cap Rate 9%
$9,383,833
Alternative Uses
Best Use
Apartment 5plus
$12.06M
$10.56M – $14.08M
NOI $844,545 @ 7.0% cap · market cap 3.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$28.43M
$24.88M – $33.17M
NOI $1,990,171 @ 7.0% cap · market cap 7.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
420
Businesses Nearby
Explore this area
Business Placement
Demographics for 79106, TX
27,692
Population
13,385
Households
2.1
Avg Household Size
37
Median Age
24%
College-Educated
87%
High-School Grad
8.6 sq mi
ZIP Area
3,220
Density / Sq Mi
$54,407
Median Household Income
$36,061
Median Earnings
$995
Median Rent
$163,100
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?
Apartment building - Ready-to-build 105-unit apartment complex near medical district.
Where is this apartment building located?
The property is located at 6990 SW 9th Ave Amarillo, TX.
What is the asking price?
The asking price for this property is $25,000,000.
What are key features of this property?
This property features: Shovel‑ready development opportunity including land, architecture, and permits.; Ideal location near Texas Tech University Health Sciences Center and other medical facilities.; Gated community providing enhanced security.
