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$3,295,000
17 Days Online

505 E 7th Street
Austin, TX 78701

For Sale|Commercial|Active
0
Beds
0
Full Baths
0
Partial Baths
6,334
SqFt
$520
/SqFt
1961
Built
Subdivision:
Block 065 Original City
County:
Travis

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512-215-0565
505 E 7th Street505 E 7th Street505 E 7th Street505 E 7th Street
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NOI of $443, 380 and 13.46% cap rate is pro forma based on Jan 1st, 2031 starting lease term at $70/ft after the current lease expires in Dec 2030. This is an incredible opportunity to acquire a property in CBD, Austin, TX. This 6334 sq foot property is currently home to the Kingdom Nightclub. The current lease is Very low under market as it was done during the Covid pandemic, with a current lease at $40, 236 base yearly rent NNN with 4% annual increases until Dec 31st, 2030. Market rents for this asset are at $70 per foot which would be close to a 13.5% cap rate at the current asking price. While current rents are low, for 6.5 more years, the property is priced at an incredible $520/sq.foot for the building and $556.20/ sq ft for the land. Market Land Value in this area is in the $5K to $10K per foot so this property is priced down by a factor of 10 based on the market land value. The average price per foot for improvements in the area is $1500 to $2500 per foot. The property has incredible future cash flow and redevelopment potential. Acquiring a property in Austin CBD a this price level is extremely rare and this is a tremendous opportunity for an end user or developer. one block away, the historic 6th St. revitalization project is underway. Conclusion: The property is not suitable for an owner-occupant as the current low lease term does not expire until Dec 2030. However, the property is listed at a steep discount by a factor of 10+, this property is the best investment option in Austin if you are willing to wait for the investment to mature by 203 once the low lease expires. With the 6th St. revitalization project on the way, 6 years from now this property will be worth even more. While current rents are low, the property is priced at an incredible $520/sq.foot which is well below the average for the area. The property has incredible future cash flow and redevelopment potential. Acquiring a property in Austin CBD a this price level is extremely rare

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Listing Snapshot
Price 
$3,295,000
Days Online 
17 Days
Bedrooms 
N/A
Inside Area (SqFt) 
6,334 sqft
Total Baths 
N/A
Full Baths 
N/A
Partial Baths 
N/A
Lot Size 
0.1352 Acres
Year Built 
1961
MLS® Number 
5799562
Status 
Active
Property Tax 
$19,537
HOA/Condo/Coop Fees 
N/A
Sq Ft Source 
Estimated
Friends & Family
Recent Activity
3 weeks agoListing updated with changes from the MLS®
3 weeks agoListing first seen online
General Features
Construction 
BrickConcrete
Parking 
None
Parking Spaces 
1
Sewer 
Public Sewer
Number of Stories 
2
Acreage 
0.1352
Water 
Public
Security 
See Remarks
Property Sub Type 
Business
Utilities 
Electricity AvailablePhone AvailableSewer AvailableWater Available
Foundation 
Slab
Zoning 
CBD
Listing Conditions 
Standard
Interior Features
Cooling 
Central Air
Heating 
Central
Flooring 
Concrete
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Exterior Features
Waterfront Property 
No
Lot 
Flat
Community Features
MLS Area 
DT
Security Features 
See Remarks
Listing courtesy of Resavvy LLC (512) 762-8669

All information provided is deemed reliable but is not guaranteed and should be independently verified. Listings courtesy of ACTRIS as distributed by MLS GRID. The Austin Board of REALTORS®, ACTRIS and their affiliates provide the MLS and all content therein "AS IS" and without any warranty, express or implied.
Data last update - 2024-04-16 07:05 PM CDT

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Neighborhood & Commute
Source: Walkscore
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