505 E. 7th St., Austin, TX 78701 - 5799562 - iPro Real Estate

505 E. 7th St.
Austin, TX 78701

Active, Commercial Sale

For Sale

$3,295,000 $520.21 per sqft

Free Professional CMA

Listing ID : 5799562

  • Structure / Lot Size

    6,334 Sqft / 5,889 Sqft
  • Year

    1961

Description

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

Details

Type: Commercial Sale 
Subdivision: Block 065 Original City 
MLS Area: DT - Central Austin 
County: Travis 
Equipment Features Avaialble: None 
Tax ID: 02060406020000
Annual Taxes: $19,537
Building Size: 6,334 SqFt 
Days on Market: 21 
Access Features: See Remarks 
Access Features: See Remarks 
Cooling: Central Air 
Flooring: Concrete 
Foundation: Slab 
Heating: Central 
Number of Buildings: 1 
Parking Spaces: 1 
Property Type: Commercial Sale 
Restrictions: None 
Sub Type: Business 
Utilities: Electricity Available, Phone Available, Sewer Available, Water Available 
Zoning: CBD 

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30.26733 -97.737549 $3,295,000 5799562
505 E. 7th St., Austin, TX 78701
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Listed by Tony Lazarov with Resavvy LLC

Based on information from the Austin Board of REALTORS® 4/19/2024.

All information provided is deemed reliable but is not guaranteed and should be independently verified. 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.

IDX information is provided exclusively for consumers’ personal, non-commercial use, that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, the data is deemed reliable but is not guaranteed accurate by the MLS. The Austin Board of REALTORS®, ACTRIS and their affiliates provide the MLS and all content. “AS IS” and without any warranty, express or implied.