Bacliff Mixed-Use Investment
For Sale
Contact for pricing
523 Grand Ave, Bacliff, TX 77518
High-traffic commercial property with restaurant space and rental income.
Property Size4,231 SF
Price / SF$135.90
Days on Market826
Property Features for 523 Grand Ave
General Information
Standard status
Active
Size
4,231 SF
Property subtype
Mixed Use, Multifamily, Retail
Building Details
Year Built
1997
Listing Agency:
Real Broker, LLC
(281) 532-2354
Listed By:
Michelle Hall · License #TX 618026
Source:
Crexi
Added: May 20, 2024
Changed: Aug 22
Last Checked: Aug 14 at 5:58AM
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 Real Broker, LLC
Investment Insights
Based on property information with market context.
Located in the heart of Bacliff along FM 646, this property offers flexibility and multiple income streams. Formerly a restaurant, the space is suited for a new concept such as a Mexican restaurant, country dining spot, donut shop, café, or office space. The property includes two attached apartments, providing rental income or live/work potential. Investors can lease the restaurant space, rent out the apartments, or operate their own business while collecting income from tenants. Situated minutes from Highway 146, Galveston Bay, and the Kemah Boardwalk, the location attracts locals and tourists, ensuring demand for retail, dining, or mixed-use concepts. The property has frontage on FM 646 with visibility. The property size is 4231 square feet.
Key Highlights
- High‑traffic location on FM 646 with excellent visibility.
- Two attached income‑producing apartments.
- Former restaurant space ready for a new concept.
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
$41,887
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
7.28%
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%
$837,740
$837.7K
Cap Rate 7%
$598,386
$598.4K
Cap Rate 9%
$465,411
$465.4K
Market Conditions
NOI Build-Up for 4,231 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
$76.2K $18.00/SF
− Vacancy
−$9.1K −$2.16/SF
EGI
$67.0K $15.84/SF
− OpEx
−$25.1K −$5.94/SF
NOI
$41.9K $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%
$837,740
Cap Rate 7%
$598,386
Cap Rate 9%
$465,411
Alternative Uses
Best Use
Mixed Use
$598.4K
$523.6K – $698.1K
NOI $41,887 @ 7.0% cap · market cap 7.28%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$47.44M
$41.51M – $55.34M
NOI $3,320,504 @ 7.0% cap · market cap 577.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
405
Businesses Nearby
Explore this area
Business Placement
Demographics for 77518, TX
9,689
Population
3,950
Households
2.5
Avg Household Size
35
Median Age
21%
College-Educated
78%
High-School Grad
3.2 sq mi
ZIP Area
3,028
Density / Sq Mi
$54,806
Median Household Income
$36,220
Median Earnings
$1,169
Median Rent
$168,000
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - High-traffic commercial property with restaurant space and rental income.
Where is this mixed-use property located?
The property is located at 523 Grand Ave Bacliff, TX.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: High‑traffic location on FM 646 with excellent visibility.; Two attached income‑producing apartments.; Former restaurant space ready for a new concept.
