505 7Th StAustin, TX 78701

For Sale
$2,695,000

High-cashflow potential, redevelopment upside

Overview

Added:
Dec 11, 2024
Days on market:
93
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.

Highlights

  • Exceptional Austin, TX investment opportunity: 6,334 sq ft, two-story building on a 5,924 sq ft lot in the CBD.
  • Currently leased to Kingdom Nightclub with a 10-year NNN lease (expiring 12/31/2030), $40,236 NOI, and 1.49% cap rate; 4% annual rent increases.
  • Strong pro-forma projections: $443,380 NOI and 16.45% cap rate upon lease expiration (projected $70/sq ft rent).
  • Asking price: $2,695,000 ($425.48/sq ft building, $556.21/sq ft land); priced below market value, considering land potential.
  • Prime location: One block from the 6th Street revitalization project, offering significant long-term appreciation potential; zoned for CBD use.

Property Details for 505 7Th St

Property type
Other specialty properties, Specialty properties
Square Feet
6,334 SF
Year Built/Renovated
1961/2021
Buildings
1
Stories
2
Units
1

Location Insight

City
Austin
County
Travis
State
Texas
Latitude
30.267617666715
Longitude
-97.737372922889
505 7Th St, Austin, Texas

FAQs

How do I add a non-forward facing team member such as a broker coordinator or broker aide to a listing in order to ensure they get notifications on the property?
Please email our support team at [email protected] and they will add the team member.
How do I access a private listing?
Please contact the broker directly with the information provided on the listing. Once the broker approves your credentials he will make the information public to you.
How can I contact the broker?
We strongly encourage to message the broker through our portal by clicking on the “Envelope” icon next to the brokers photo on the property page. We’ve found brokers response time is much quicker via our messaging portal than phone as brokers are always on the go.
How do I unsubscribe from emails?
At the footer of each email you will find links to Reduce Email Frequency, Adjust Email Settings or Unsubscribe altogether. If you choose to Unsubscribe and are still receiving emails please reach out to us at [email protected].
505 7Th St
Thanks! Your message was sent.
Error! Your message wasn't sent.
Please enter your first name
Please enter your last name
Please enter email
Please enter the email in the correct format
Please enter phone
Please enter the number in the correct format
Select size
Please enter message