Value-Add Retail Acquisition — Inner Northwest Houston

Alamo
Plaza

13,200 SF  ·  Neighborhood Strip Center  ·  69% Occupied  ·  4740 Dacoma St, Houston TX 77092

Current Gross Income
$177,138
Annual · 69% occupied
Redlands Entry Range
$1.95M–$2.35M
Open $1.95M · Target $2.15M–$2.35M
Stabilized NOI (Base)
$190K–$210K
After lease-up · NNN normalized
Stabilized Value
$2.24M–$2.63M
At 8.0%–8.5% cap · base case
✓  Why You Want It
✓
2019 Remodel with Good Physical Bones HCAD lists the building as remodeled in 2019 with good quality, central/forced cooling, wet sprinkler, concrete block exterior, and 14-foot wall height. A recently renovated strip center in this condition removes the first wave of capex risk that typically haunts older neighborhood retail. The physical asset is not the problem here.
✓
290 / 610 / I-10 Access — Three Freeways Within Minutes The property sits in the Inner Northwest submarket with immediate access to US-290, I-610, and I-10. The leasing brochure highlights this as a primary selling point, and the street views confirm the Dacoma/Karbach/Hurfus intersection gives tenants and customers a genuinely accessible location. Proximity to the Karbach Brewery corridor adds a shadow-anchor draw that benefits small-shop retail.
✓
31% Vacancy is the Upside Story, Not a Dealbreaker Suite C (1,920 SF) and Suite H (2,200 SF endcap) are vacant and advertised at $18–$20/SF NNN. If both lease at those rates, they add $78,560 in annual base rent to the existing $147,398, pushing stabilized base rent toward $225,958. That is the value-add thesis in plain math. An investor who can execute the lease-up controls the outcome.
✓
Existing Tenants Provide Real Income During Lease-Up Four of five occupied tenants are on term leases through 2026–2028 with contractual rent escalations. Sage and Blush Venue, Evans Group, Southern Donuts, and Tatemo Enterprises collectively generate $94,502 in annual base rent with NNN recovery. That is a real income floor that offsets carry cost while the investor works the vacant suites and addresses the church tenant situation.
⚠  Key Risks
⚠
Largest Tenant is Month-to-Month on a Gross Lease Generacion de Cristo (Suite G, 3,580 SF) is the single largest tenant at 27% of total GLA. They pay $52,896/year on a gross, month-to-month lease with zero NNN recovery. That means the landlord absorbs all taxes, insurance, CAM, and maintenance for that suite. If the church leaves, the center drops from 69% to 42% occupied overnight. This is the highest-priority risk item in the deal.
⚠
True NOI is Unknown — Rent Roll is Not an Operating Statement The rent roll shows $177,138 in gross rent, but actual NOI after taxes, insurance, CAM, management, utilities, repairs, and reserves is unknown. The church tenant's gross lease means the landlord is absorbing a significant expense load for 3,580 SF with no recovery. A T-12 operating statement is required before underwriting a hard number. Do not confuse gross rent with NOI.
⚠
Near-Term Lease Rollover Exposure Southern Donuts (Suite E, 1,300 SF) expires November 2026 at $12/SF base — well below the $18–$20/SF NNN the OM advertises for vacant suites. Tatemo Enterprises (Suite F, 1,100 SF) expires December 2026. Together, those two suites represent 2,400 SF of near-term rollover risk. If they do not renew at market rates, the income story gets messier before it gets cleaner.
⚠
Retail Leasing Risk at $18–$20/SF NNN The OM advertises Suite C at $18/SF NNN and Suite H at $20/SF NNN. Whether those rates are actually achievable in this submarket for these suite sizes is unverified. There is a discrepancy between the OM SF (1,800 SF and 2,000 SF) and the rent roll SF (1,920 SF and 2,200 SF) that needs to be resolved. Leasing activity, tour history, and any LOIs should be requested before going hard on a contract.

Financial Analysis

The Numbers

Current Income (As-Is)
Building SF 13,200 SF
Occupied SF 9,080 SF (69%)
Vacant SF 4,120 SF (31%)
Annual Base Rent $147,398
Annual NNN Recovery $29,740
Annual Gross Rent $177,138
Stabilized Upside (Lease-Up)
Suite C (1,920 SF @ $18/SF) +$34,560/yr
Suite H (2,200 SF @ $20/SF) +$44,000/yr
Stabilized Base Rent ~$225,958/yr
Stabilized NOI Scenarios
Conservative NOI $175K–$190K
Base Case NOI $190K–$210K
Aggressive NOI (Clean Leases) $215K–$230K
Redlands Pricing Guidance
Opening Offer $1.95M–$2.10M
Target Contract $2.15M–$2.35M
Conservative MAO $2.25M–$2.40M
Conditional Stretch $2.50M–$2.60M
As-Is Walk-Away ~$2.45M
Do Not Chase Above $2.75M+
Current Gross Yield at Entry
$2.00M 8.86% gross yield
$2.25M 7.87% gross yield
$2.40M 7.38% gross yield
$2.60M 6.81% gross yield
HCAD Public Record
HCAD 2026 Market Value $2,423,507
HCAD 2026 Appraised Value $2,400,000
HCAD 2025 Value $2,000,000

As of November 1, 2025

Rent Roll

Suite Tenant SF Lease Expiration Annual Base Rent Annual NNN Annual Gross Base PSF Notes
A Sage and Blush Venue LLC 2,000 4/30/2028 $36,000 $12,000 $48,000 $18.00 NNN
D Evans Group 1,100 10/31/2027 $20,352 $5,500 $25,852 $18.50 NNN · Annual increases
E Southern Donuts 1,300 11/30/2026 $15,600 $6,300 $21,900 $12.00 Below market · Near-term rollover
F Tatemo Enterprises LLC 1,100 12/31/2026 $22,550 $5,940 $28,490 $20.50 NNN · Annual increases
G Generacion de Cristo Inc. 3,580 Month-to-Month $52,896 $0 $52,896 $14.78 Gross lease · No NNN recovery · M2M
C Vacant 1,920 — — — — $18.00 ask Upside · $34,560/yr at ask
H Vacant (Endcap) 2,200 — — — — $20.00 ask Upside · $44,000/yr at ask
Occupied Totals (5 Tenants / 9,080 SF / 69%) 9,080 $147,398 $29,740 $177,138

Rent roll as of November 1, 2025. Suite G gross lease means landlord absorbs all taxes, insurance, CAM, and maintenance for 3,580 SF with zero recovery. True NOI requires full T-12 operating statement. Suite SF per rent roll; leasing OM shows different SF for Suites C and H — verify prior to contract.

Acquisition Underwriting

Pricing Scenarios

Scenario NOI Assumption Cap Rate Implied Value Investor Lens
Current Income / Conservative $177K gross (not NOI) 8.0%–9.0% $1.85M–$2.20M Defensive current-income pricing
Current Gross Yield Lens $177,138 gross rent 7.5%–8.5% $2.08M–$2.36M Useful but gross rent ≠ NOI
Stabilized Base Case $190K–$210K NOI 8.0%–8.5% $2.24M–$2.63M Redlands target range
Stabilized Strong Case $215K–$230K NOI 7.5%–8.0% $2.69M–$3.07M Requires cleaner leases & lower risk
Execution-Adjusted Acquisition Basis Stabilized less TI/LC & downtime — $2.10M–$2.45M Most realistic Redlands entry lens

Location

Inner Northwest Houston — 290 / 610 Corridor

4740 Dacoma St, Houston TX 77092  ·  Inner Northwest Submarket 5006  ·  Dacoma / Karbach / Hurfus intersection  ·  US-290, I-610, and I-10 within minutes

Property Photography

Alamo Plaza

Karbach St street view, Alamo Plaza facade, Jun 2024
Hurfus Dr approach, building exterior and parking, Jun 2024 Google Maps, Dacoma St proximity to US-290 and I-610 Wide area map, Inner Northwest Houston, freeway access HCAD property record, 4740 Dacoma St, 2026 valuation

Property Details

Quick Facts

Address
4740 Dacoma St
Houston, TX 77092 · Alamo Plaza
Submarket
Inner Northwest
Market Area 5006 · Dacoma / Karbach corridor
Building Size
13,200 SF
Net Rentable Area · Per rent roll and HCAD
Land Size
50,757 SF
1.17 Acres · Corner or alley per HCAD
Occupancy
69% Occupied
5 tenants / 9,080 SF · 4,120 SF vacant
Year Built / Remodeled
2003 / 2019
Good quality per HCAD · Concrete block
Building Type
Strip Shopping Center
Neighborhood Shopping Ctr · HCAD 8412
Construction
Concrete Block
14 ft wall height · Wet sprinkler · Central HVAC
Parking
Heavy Concrete
22,800 SF paving · Canopy roof/slab
HCAD Value (2026)
$2,400,000
Market: $2,423,507 · Up from $2.0M in 2025
Current Owner
Houden Properties LLC
Owner since 2018 · Soft off-market lead
Deal Type
Value-Add Retail
Lease-up · Tenant stabilization · Hold

Ready to Move?

Talk to the Team

Samuel Smith
Samuel Smith
Managing Partner
979-571-5087
Call Samuel
TX Lic #697734
Brent Arents
Brent Arents
Commercial Agent
979-229-8820
Call Brent

This investment summary is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or investment. Prepared by Redlands Commercial Group. All figures are based on information believed to be reliable but not guaranteed. Building SF, occupancy, lease terms, NOI, condition, environmental history, zoning, and all other physical and legal characteristics remain subject to independent verification. Full financials and offering memorandum available after NDA execution. Redlands Commercial Group · Brokered by Walzel Properties · TX Lic #697734