928 Post Office St Galveston, TX 77550

Property Details for 928 Post Office St

Year built

1971

Property size

15,016 SF

Property type

Dormitories

Property subtype

Student housing

Description

This exceptional 16-unit multifamily property, situated at 928 Postoffice St in Galveston, Texas, presents a compelling value-add investment opportunity. The property, classified as a Class B building, boasts a total of 15,016 square feet across two, two-story buildings on a 15,481 square foot lot (APN: 3505-0489-0012-000). Constructed in 1971 and partially renovated in 2022, the property currently enjoys an 87.5% occupancy rate, generating a Net Operating Income (NOI) of $165,478, with a projected NOI of $182,696. The asking price is $2,200,000, translating to $146.51 per square foot and $137,500 per unit. The property features individually metered power, an on-site laundry room, and in-unit water heaters. Twelve units include washer/dryer sets. Significant upgrades include the replacement of plumbing with CVPVC and electrical systems with copper wiring. The roof was replaced in 2001 and resurfaced in 2017. Eleven of the sixteen units underwent cosmetic renovations in 2022, along with upgrades to some central air systems and water heaters. The property's strategic location adjacent to the University of Texas Medical Branch (UTMB) and Shriner's Hospitals for Children/Sealy Hospitals, and its proximity to the Port of Galveston Cruise Terminal, ensures strong demand and potential for increased rental income. Further value-add opportunities exist through lease-up of vacant units, completing renovations in the remaining five units, maximizing parking revenue, implementing a utility reimbursement program, and potentially upgrading the laundry facilities and adding W/D connections to all units. This property offers a compelling combination of strong current performance and significant upside potential, making it an attractive investment in a thriving Texas market. The current cap rate is 7.52%, with a pro-forma cap rate of 8.30%.

Location Insight

City

Galveston

County

Galveston

State

Texas

Longitude

-94.7787

Latitude

29.3085