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    The Largest CRE Database in the US with Over 1 Million Listings

    1501 9Th Ave Amarillo, TX 79101

    Sponsored
    For Sale
    $1,975,000

    33-Unit Value-Add Apartment Building

    Property size:
    17,100 SF

    Description

    Added:
    Dec 11, 2024
    Days on Market:
    410
    This exceptional 33-unit apartment building, located at 1501 SW 9th Ave in Amarillo, Texas, presents a compelling value-add opportunity. The property boasts 17,100 square feet and sits on a desirable lot just west of a major Amarillo thoroughfare, conveniently located off Interstate 40. Built in 1963, this two-story Class C building has undergone significant renovations since 2021, totaling over $645,000 in capital improvements. These upgrades include a new roof (2021), HVAC replacements, updated water heaters, electrical and plumbing systems, and complete unit renovations featuring new appliances, countertops, flooring, fixtures, paint, toilets, and doors. Currently operating at 97% occupancy, the property generates a Net Operating Income (NOI) of $120,000, with a pro-forma NOI of $131,916 achievable through the implementation of RUBS (renters utility billing system) for gas, water, trash, and sewer. The asking price is $1,975,000, representing $59,848 per unit and a current cap rate of 6.08%, with a pro-forma cap rate of 6.68%. The property is surrounded by single-family rentals and commercial businesses, making it an ideal investment in a strong Texas market with potential for increased rental income. This is a rare opportunity to acquire a well-maintained, updated multifamily property with significant upside potential.

    Property Features for 1501 9Th Ave

    General Information

    Property type
    Multifamily properties
    Square Feet
    17,100 SF
    Class
    C

    Building Details

    Year Built
    1963
    Stories
    2
    Units
    33

    We can help!

    Listing Contact
    Kirk Chudej
    Kirk Chudej

    Learn more

    HighLights

    • Strong Texas economy offers excellent investment potential.
    • Below‑market rents provide immediate value‑add opportunity.
    • Potential for significant revenue growth through implementing RUBS (Rent Up, Build Up, Stabilize) strategy.
    • $645,000 in capital expenditures since 2021 demonstrates significant property improvements.
    Property Profile Location Intelligence

    Current Use by Public Records

    Broadstone Apartments in Amarillo Apartment Complex Board apts Apartment Complex

    Suggested Use

    Realty agency Spa & Massage Restaurant Dental Office Hair Salon Nail Salon Law Firm Clothing Store Gym & Fitness Skin Care Clinic

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

    Location Insight

    • Map
    • Local Demand
    City
    Amarillo
    County
    Potter
    State
    Texas
    Longitude
    -101.85478912254
    Latitude
    35.206059679606

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    FAQs

    What type of property is this?
    Multifamily property - 33-Unit Value-Add Apartment Building
    Where is this multifamily property located?
    The property is located at 1501 9Th Ave Amarillo, TX.
    What is the asking price?
    The asking price for this property is $1,975,000.
    What are key features of this property?
    This property features: Strong Texas economy offers excellent investment potential.; Below-market rents provide immediate value-add opportunity.; Potential for significant revenue growth through implementing RUBS (Rent Up, Build Up, Stabilize) strategy.
    Request Owner's contact information
    1501 9Th Ave Amarillo, TX 79101
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    Amarillo, TX 79101
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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.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    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
    1501 9Th Ave Amarillo, TX 79101
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    We can help!
    Listing Contact
    Kirk Chudej
    Kirk Chudej
    Real Estate License ID: TX 604402
    Learn more
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