Midland TX Multifamily
For Sale
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3208 Preston Dr, Midland, TX 79707
25-home portfolio with 100% tenant occupancy in Midland, TX.
Property Size14,750 SF
Price / SF$171.19
Days on Market897
Property Features for 3208 Preston Dr
General Information
Standard status
Active
Size
14,750 SF
Property subtype
Multifamily
Zoning
PD
Building Details
Year Built
1982
Listing Agency:
The Agency KPJ
(432) 553-7443
Listed By:
Kerri Payne James · License #TX 0591603
Source:
Crexi
Added: Mar 11, 2024
Changed: Aug 8
Last Checked: Aug 8 at 11:47AM
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 The Agency KPJ
Investment Insights
Based on property information with market context.
This offering presents an investment opportunity consisting of a 25-home portfolio located across several street locations in Midland, TX. The properties feature active leases and 100% tenant occupancy. Midland/Odessa is home to major Oil & Gas corporations. The majority of the homes are 3-bedroom, 2-bath duplexes or townhomes situated in subdivisions and neighborhoods. The total property size is 14750 square feet. The rental portfolio package is also being sold as 6 separate portfolios and contains 10 single-family residences on Preston Dr.
Key Highlights
- 100% tenant occupancy with active leases, ensuring immediate rental income.
- Portfolio of 25 homes in Midland, TX, offering diversification.
- Located in Midland/Odessa, home to major Oil & Gas corporations, providing a stable tenant base for corporate housing.
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
$122,880
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
4.87%
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%
$2,457,600
$2.5M
Cap Rate 7%
$1,755,429
$1.8M
Cap Rate 9%
$1,365,333
$1.4M
Market Conditions
NOI Build-Up for 14,750 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
$239.0K $16.20/SF
− Vacancy
−$15.5K −$1.05/SF
EGI
$223.4K $15.15/SF
− OpEx
−$100.5K −$6.82/SF
NOI
$122.9K $8.33/SF
Area
Midland, TX
Vacancy
6.50%
Lease Rate
$16.20 /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%
$2,457,600
Cap Rate 7%
$1,755,429
Cap Rate 9%
$1,365,333
Alternative Uses
Best Use
Apartment 5plus
$1.76M
$1.54M – $2.05M
NOI $122,880 @ 7.0% cap · market cap 4.87%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.48M
$3.04M – $4.06M
NOI $243,552 @ 7.0% cap · market cap 9.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
535
Businesses Nearby
Explore this area
Business Placement
Demographics for 79707, TX
37,632
Population
16,654
Households
2.3
Avg Household Size
35
Median Age
41%
College-Educated
91%
High-School Grad
71.0 sq mi
ZIP Area
530
Density / Sq Mi
$99,979
Median Household Income
$58,351
Median Earnings
$1,383
Median Rent
$382,400
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?
Multifamily property - 25-home portfolio with 100% tenant occupancy in Midland, TX.
Where is this multifamily property located?
The property is located at 3208 Preston Dr Midland, TX.
What is the asking price?
The asking price for this property is $2,525,000.
What are key features of this property?
This property features: 100% tenant occupancy with active leases, ensuring immediate rental income.; Portfolio of 25 homes in Midland, TX, offering diversification.; Located in Midland/Odessa, home to major Oil & Gas corporations, providing a stable tenant base for corporate housing.
