505 E 7th St
6,361 SF Retail Building Austin, TX 78701 $2,400,000 ($377.30/SF)
INVESTMENT HIGHLIGHTS
- Below-Market Lease: Secured during the pandemic, the current lease is only $43,512 base yearly rent NNN, with 4% annual increases until 12/31/2030
- Prime Redevelopment Opportunity: Perfect for an end-user or developer looking to capitalize on Austin’s explosive growth.
- Unmatched Upside: Acquire today at a steep discount and benefit from future value appreciation as the lease nears its end.
EXECUTIVE SUMMARY
Rare Investment Opportunity in the Heart of Austin’s CBD
Discover an extraordinary chance to acquire a prime property in the vibrant Central Business District of Austin, TX, at an attractive price point. Spanning 6,361 sq. ft., this property, currently home to the Kingdom Nightclub, offers incredible future potential for investors and developers willing to take a long term view on the property.
Key Highlights:
Below-Market Lease: Secured during the pandemic, the current lease is only $43,512 base yearly rent NNN, with 4% annual increases until December 31, 2030. Comparable market rents for similar assets are $40-$45 per sq. ft., offering immense upside once the current lease expires. Please call broker for more details on the opportunity.
Exceptional Value: Priced at $408/sq. ft., this property is a rare gem in Austin’s CBD. At market rents, the asset would deliver a strong 9% cap rate at the current asking price.
Future Potential: While the current lease runs for another six years, this property presents incredible long-term opportunities for redevelopment or repositioning. With the ongoing revitalization of historic 6th Street, this area is poised for significant appreciation.
Strategic Location: Situated just one block from the transformative 6th Street revitalization project, this property stands at the forefront of Austin’s growth and cultural evolution.
Why This Property?
Unmatched Upside: Acquire today at a steep discount and benefit from future value appreciation as the lease nears its end. Prime Redevelopment Opportunity: Perfect for an end-user or developer looking to capitalize on Austin’s explosive growth. Austin CBD Rarity: Properties at this price and location are exceedingly hard to find—seize this opportunity now.
Conclusion: While not ideal for immediate owner-occupancy due to the existing lease, this property offers tremendous future cash flow and redevelopment prospects. With 6th Street’s revitalization just around the corner, this is your chance to secure a foothold in one of Austin’s most dynamic neighborhoods at an unbeatable price.
Discover an extraordinary chance to acquire a prime property in the vibrant Central Business District of Austin, TX, at an attractive price point. Spanning 6,361 sq. ft., this property, currently home to the Kingdom Nightclub, offers incredible future potential for investors and developers willing to take a long term view on the property.
Key Highlights:
Below-Market Lease: Secured during the pandemic, the current lease is only $43,512 base yearly rent NNN, with 4% annual increases until December 31, 2030. Comparable market rents for similar assets are $40-$45 per sq. ft., offering immense upside once the current lease expires. Please call broker for more details on the opportunity.
Exceptional Value: Priced at $408/sq. ft., this property is a rare gem in Austin’s CBD. At market rents, the asset would deliver a strong 9% cap rate at the current asking price.
Future Potential: While the current lease runs for another six years, this property presents incredible long-term opportunities for redevelopment or repositioning. With the ongoing revitalization of historic 6th Street, this area is poised for significant appreciation.
Strategic Location: Situated just one block from the transformative 6th Street revitalization project, this property stands at the forefront of Austin’s growth and cultural evolution.
Why This Property?
Unmatched Upside: Acquire today at a steep discount and benefit from future value appreciation as the lease nears its end. Prime Redevelopment Opportunity: Perfect for an end-user or developer looking to capitalize on Austin’s explosive growth. Austin CBD Rarity: Properties at this price and location are exceedingly hard to find—seize this opportunity now.
Conclusion: While not ideal for immediate owner-occupancy due to the existing lease, this property offers tremendous future cash flow and redevelopment prospects. With 6th Street’s revitalization just around the corner, this is your chance to secure a foothold in one of Austin’s most dynamic neighborhoods at an unbeatable price.
PROPERTY FACTS
Sale Type
Investment NNN
Sale Conditions
Property Type
Retail
Property Subtype
Building Size
6,361 SF
Building Class
C
Year Built
1961
Price
$2,400,000
Price Per SF
$377.30
Tenancy
Single
Building Height
2 Stories
Building FAR
1.04
Lot Size
0.14 AC
Zoning
CBD - Redevelopment potential with huge upside.
The E 7th St area has several lots ready to be developed.
Market rent at $40 to $45 per foot NNN
Frontage
48’ on E 7th St
AMENITIES
- Tenant Controlled HVAC
- Accent Lighting
- Recessed Lighting
- Air Conditioning
MAJOR TENANTS
- TENANT
- INDUSTRY
- SF OCCUPIED
- RENT/SF
- LEASE TYPE
- LEASE END
- Kingdom Nightclub
- -
- 5,888 SF
- -
- Single Net
- Dec 2030
| TENANT | INDUSTRY | SF OCCUPIED | RENT/SF | LEASE TYPE | LEASE END | |
| Kingdom Nightclub | - | 5,888 SF | - | Single Net | Dec 2030 |
Walk Score®
Walker's Paradise (95)
Bike Score®
Biker's Paradise (91)
NEARBY MAJOR RETAILERS
PROPERTY TAXES
| Parcel Number | 194581 | Improvements Assessment | $49,486 |
| Land Assessment | $1,030,400 | Total Assessment | $1,079,886 |
