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Shopping Strip

West Gulf Bank Shopping Center

5815 W Gulf Bank Rd, Houston, TX 77088

Listing Price: $3,075,000

Cap Rate
7.53%
Gross SF
28,990
Rentable SF
28,990
Price/Gross SF
$106.07
Lot Size
2.10 acres
Year Built
1978

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.

Investment Highlights

  • Priced Below Replacement Cost: $106 Per Square Foot
  • 7.53 Percent Cap Rate Day One
  • Multiple Avenues to Increase Value to Achieve Pro Forma Cap Rates of 8.39 Percent - 10.4 Percent or Higher
  • Four Curb Cuts Across Antoine Drive and West Gulf Bank Road
  • Units Are In-Line with West Gulf Bank Road: Excellent Visibility and Ease of Leasing
  • Property is Surrounded by Dense Residential Neighborhoods: 123,000 Population Within Three Miles
  • Property is Located at One of Inwood Submarket's Premier Lighted Intersections

Exclusively Listed By

Shopping Strip

West Gulf Bank Shopping Center

Listing Price: $3,075,000

Cap Rate
7.53%
Gross SF
28,990
Rentable SF
28,990
Price/Gross SF
$106.07
Lot Size
2.10 acres
Year Built
1978

Investment Highlights

  • Priced Below Replacement Cost: $106 Per Square Foot
  • 7.53 Percent Cap Rate Day One
  • Multiple Avenues to Increase Value to Achieve Pro Forma Cap Rates of 8.39 Percent - 10.4 Percent or Higher
  • Four Curb Cuts Across Antoine Drive and West Gulf Bank Road
  • Units Are In-Line with West Gulf Bank Road: Excellent Visibility and Ease of Leasing
  • Property is Surrounded by Dense Residential Neighborhoods: 123,000 Population Within Three Miles
  • Property is Located at One of Inwood Submarket's Premier Lighted Intersections

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.

Exclusively Listed By

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