Investment Overview

Marcus & Millichap is pleased to exclusively list for sale College Avenue Retail Center, located at 9247 Gulf Freeway in Houston, Texas. The 36,240 square foot retail property is situated on approximately 3.21 acres off I-45, at the northeast corner of Gulf Freeway and College Avenue. At the property’s current Net Operating Income, an investor will yield a 7.36 percent CAP Rate, which accounts for the property’s current 76 percent occupancy. Should an investor increase the occupancy to 95 percent, the CAP Rate will increase to 9.79 percent. Tenants are on triple-net leases, protecting an investor from possible increases in future expenses. 26 percent of the property currently has below-market rents, under $15 per square foot. Rental rates at the property range from $11.11 per square foot to $22.24 per square foot, which is indicative of additional upside by increasing below-market rents. College Avenue Retail Center is located near Pasadena, five minutes from William P. Hobby Airport, which accommodates 6.4 million passengers a year. Pasadena’s key economic sectors include exploration for petroleum and gas, petroleum refining, petrochemical processing, and maritime shipping. The nearby Bayport Industrial District, one of the nation’s largest chemical processing complexes, is vital to employment in Pasadena. Additionally, the economy is closely linked to the nearby Houston Ship Channel.