505 E 7th Street, Austin

$3,295,000

0 Bed
0 Bath
.14 Acre
0 Garage

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

Essential Information
MLS® #5799562
Price$3,295,000
Bathrooms0.00
Acres0.14
Year Built1961
TypeCommercial Sale
Sub-TypeBusiness
StatusActive
Community Information
Address505 E 7th Street
AreaDT
SubdivisionBlock 065 Original City
CityAustin
CountyTravis
StateTX
Zip Code78701
Amenities
ParkingNone
Utilities

Electricity Available, Phone Available, Sewer Available, Water Available

Interior
InteriorConcrete
HeatingCentral
Exterior
Lot DescriptionFlat
ConstructionBrick, Concrete
FoundationSlab
Additional Information
Date ListedMarch 29th, 2024
Days on Market20
ZoningCBD
Listing Details
Office Contact(512) 762-8669
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Property Listed by: Resavvy LLC

The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Based on information from the Austin Board of REALTORS® (alternatively, from ACTRIS) from April 19th, 2024 at 2:03pm CDT. Neither the Board nor ACTRIS guarantees or is in any way responsible for its accuracy. 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 maintained by the Board or ACTRIS may not reflect all real estate activity in the market.

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