505 7Th StAustin, TX 78701

Property Details for 505 7Th St

Year built

1961

Construction

CONCRETE

Lot size

0.14 AC

Property size (Sq ft)

5,888 SF

Property type

Warehouses

APN

206040602

APU

206040602

Description

This exceptional Austin, TX property (505 E 7th St, 78701) offers a unique investment opportunity. Currently housing Kingdom Nightclub, the 6,334 sq ft, two-story building sits on a 5,924 sq ft lot and boasts a 15-foot ceiling height. The property features a 10-year NNN lease (commencing January 1, 2021, expiring December 31, 2030) with a current NOI of $40,236 and a 1.49% cap rate. However, a pro-forma analysis, projecting a January 1, 2031 lease at $70/sq ft, reveals a significantly higher NOI of $443,380 and a 16.45% cap rate. The current lease includes 4% annual rent bumps. The asking price is $2,695,000, translating to $425.48/sq ft for the building and $556.21/sq ft for the land. While the current lease is below market value, the property's location in the Austin CBD, one block from the 6th Street revitalization project, presents substantial long-term appreciation potential. The significant difference between current and pro-forma NOI highlights the substantial upside upon lease expiration. This presents a compelling opportunity for investors seeking a long-term hold with significant future returns. The property is zoned for CBD use. Built in 1961 and renovated in 2021, this asset is priced well below market value, considering the land's potential alone. The seller is open to lease income supplementation concessions. Note: This property is not suitable for owner-occupancy due to the existing lease term.

Location Insight

City

Austin

County

Travis

State

Texas

Latitude

30.2673

Longitude

-97.7375

CBSA code

12420

CBSA name

AUSTIN-ROUND ROCK, TX METROPOLITAN STATISTICAL AREA

Property Tax & Assessments

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