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    7065 East Fwy Houston, TX 77020

    Sponsored
    For Sale
    $3,730,000

    Houston medical office, strong tenant, NNN lease.

    Property size:
    8,880 SF

    Description

    Added:
    Dec 11, 2024
    Days on Market:
    400
    Exceptional investment opportunity: a 8,880 square foot medical office building located at 7065 East Fwy, Houston, Texas 77020. This single-tenant property boasts a 100% occupancy rate with DaVita Dialysis (NYSE: DVA) under a triple-net (NNN) lease expiring January 30, 2030. The lease includes two five-year renewal options, each with a 10% rent increase. The building, constructed in 2002 and renovated in 2015, sits on a 1.23-acre lot and offers 49 parking spaces. The property features a strong net operating income (NOI) of $242,318, resulting in a 6.50% cap rate. The asking price is $3,730,000. This investment benefits from a corporate lease guarantee and is situated in a high-traffic area surrounded by national retailers, pharmacies, and a dense residential population exceeding 81,000 residents within a 3-mile radius. The Harris County location in Texas offers the advantage of being in an income tax-free state. APN: 121-622-001-0001.

    Property Features for 7065 East Fwy

    General Information

    Property type
    Medical offices
    Square Feet
    8,880 SF
    Lot Size
    53,579 SF

    Building Details

    Year Built/Renovated
    2002/2015

    HighLights

    • NNN lease with investment‑grade tenant DaVita Dialysis (NYSE: DVA).
    • Lease expires January 31, 2030.
    • Corporate lease guarantee provided by DaVita.
    • Located in Texas, a state with no income tax.
    • Two, five‑year lease options with 10% rent increases each.
    • Excellent location near national retailers, pharmacies, and a high‑density residential area.
    Property Profile Location Intelligence

    Current Use by Public Records

    DaVita Denver Harbor ... Dialysis Center

    Suggested Use

    Realty agency Law Firm Restaurant Spa & Massage Dental Office Hair Salon Nail Salon Clothing Store Building Supply Gym & Fitness

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Houston
    County
    Harris
    State
    Texas
    Longitude
    -95.2991834
    Latitude
    29.7757607

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    FAQs

    What type of property is this?
    Medical office - Houston medical office, strong tenant, NNN lease.
    Where is this medical office located?
    The property is located at 7065 East Fwy Houston, TX.
    What is the asking price?
    The asking price for this property is $3,730,000.
    What are key features of this property?
    This property features: NNN lease with investment-grade tenant DaVita Dialysis (NYSE: DVA).; Lease expires January 31, 2030.; Corporate lease guarantee provided by DaVita.
    Request Owner's contact information
    7065 East Fwy Houston, TX 77020
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    7065 East Fwy Houston, TX 77020
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