Historic Runge House
For Sale
Contact for pricing
Pending
1301 Market St, Galveston, TX 77550
Mediterranean villa with luxury living space in historic district.
Property Size6,553 SF
Days on Market752
Property Features for 1301 Market St
General Information
Standard status
Pending
Size
6,553 SF
Property subtype
Hospitality, Mixed Use, Special Purpose
Building Details
Buildings
1
Stories
3
Listing Agency:
Living Vogue Real Estate
Listed By:
Lisa Marie Sanders · License #629801-B
(281) 900-9663
Source:
Crexi
Added: Aug 28, 2024
Changed: Sep 10
Last Checked: Sep 16 at 3:36PM
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 Living Vogue Real Estate
Investment Insights
Based on property information with market context.
Located in the East End Historic District, the 1916 Runge House is a Mediterranean Italian Villa style residence featuring three levels of luxury living space. The stucco property spans 6553 square feet and showcases meticulous craftsmanship and detailing. Interior features include paneled walls, crown molding, and arched windows with plantation shutters for natural light. The residence is equipped with an elevator, hardwood floors, five bedrooms, five and a half bathrooms, a gourmet kitchen, and a large breakfast area with a deck. Custom patios and porches enhance the outdoor living experience. Lush landscaping surrounds the property, featuring a pool with multiple outside seating areas. A two-car garage is attached, with additional covered parking spaces available. The property can be used as a vacation rental and is within walking distance of the cruise terminal.
Key Highlights
- Historic Mediterranean Italian Villa (Runge House) in the East End Historic District.
- 6553 sq ft of luxury living space across three levels.
- Five bedrooms and five and a half bathrooms.
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
$64,875
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
3.61%
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%
$1,297,500
$1.3M
Cap Rate 7%
$926,786
$926.8K
Cap Rate 9%
$720,833
$720.8K
Market Conditions
NOI Build-Up for 6,553 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
$118.0K $18.00/SF
− Vacancy
−$14.2K −$2.16/SF
EGI
$103.8K $15.84/SF
− OpEx
−$38.9K −$5.94/SF
NOI
$64.9K $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%
$1,297,500
Cap Rate 7%
$926,786
Cap Rate 9%
$720,833
Alternative Uses
Best Use
Mixed Use
$926.8K
$810.9K – $1.08M
NOI $64,875 @ 7.0% cap · market cap 3.61%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$73.47M
$64.29M – $85.71M
NOI $5,142,818 @ 7.0% cap · market cap 285.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,095
Businesses Nearby
Explore this area
Business Placement
Demographics for 77550, TX
24,247
Population
15,811
Households
1.5
Avg Household Size
41
Median Age
33%
College-Educated
87%
High-School Grad
7.6 sq mi
ZIP Area
3,190
Density / Sq Mi
$46,262
Median Household Income
$35,800
Median Earnings
$1,182
Median Rent
$283,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Mediterranean villa with luxury living space in historic district.
Where is this mixed-use property located?
The property is located at 1301 Market St Galveston, TX.
What is the asking price?
The asking price for this property is $1,799,000.
What are key features of this property?
This property features: Historic Mediterranean Italian Villa (Runge House) in the East End Historic District.; 6553 sq ft of luxury living space across three levels.; Five bedrooms and five and a half bathrooms.
