Investment Overview

Marcus & Millichap is pleased to exclusively present for sale the West Gulf Bank Shopping Center, located at 5815 - 5865 West Gulf Bank Road in Houston, Texas. The shopping center has 28,990 square feet of gross leasable area and is situated on 2.1 acres of land. West Gulf Bank Shopping Center is located at the southwest corner of Antoine Drive and West Gulf Bank Road with four total access points on the two thoroughfares. The offering is priced at $3,075,000, which is $106 per square foot to the building, at a 7.53 percent day one cap rate and 8.39 percent pro forma cap rate, should an investor lease the 2,300-square-foot vacancy at a rate of $12 per square foot on a gross lease. A purchaser can increase income by leasing the Antoine Drive pad site to tenants such as food truck operators. In addition, the asking average rental rate nearby is $12 - $14 per square foot plus triple nets. If a purchaser were to convert half of the leases to triple-net leases, the pro forma cap rate would be 10.4 percent, not including pro forma revenue from food trucks. West Gulf Bank Shopping Center’s price point at $106 per square foot to the building is significantly below replacement cost. The retail center’s price per foot valuation is directly correlated to the in-place below-market rents. The below-market rents are sustainable, allowing for tenants to be able to survive. In addition, future vacancies will be able to be re-leased at equal or higher rental rates.