Investment Opportunity — Houston, TX

Richmond
Commons

77,246 SF  ·  17 Suites  ·  Non-Anchor Retail Strip  ·  Inner Southwest Houston

Asking Price
$20,000,000
$258.91/SF
Suggested Strike Price
$15.5M–$16M
Redlands guidance
Year 1 NOI
$1,429,602
8.50% cap on $16.8M
Occupancy
86.8%
14 tenants / 3 vacant suites
✓  Why You Want It
✓
Real Income, Real Scale, Inner Southwest Location $1,429,602 Year 1 NOI on 77,246 SF of in-place retail income. Located on Richmond Ave in Houston's Inner Southwest submarket, the center sits at a high-traffic corridor with 14 occupied tenants, NNN leases, and a 1985-built / 2023-renovated structure on 5.32 acres.
✓
Sticky Local Tenant Mix with Destination Operators The tenant base includes ethnic grocery, restaurant, washateria, smoke shop, food mart, hair salon, and social/entertainment uses. These operators tend to be highly sticky: specialized build-outs, loyal local customer bases, and high relocation costs make them difficult to displace and hard to replace.
✓
10,200 SF Vacant — Lease-Up Upside Built In Three vacant suites (4,200 SF, 4,000 SF, 2,000 SF) represent immediate value-add opportunity. Leasing all three at market rates pushes NOI from $1,429,602 to the pro forma $1,697,418. The upside is real and the vacancy is manageable at 13.2% of GLA.
✓
HCAD Appraised at $18.3M — Basis Below Assessed Value HCAD's 2026 appraised value is $18,342,281. A buyer contracting at $15.5M–$16M would be acquiring below the county's own assessed value, providing a meaningful margin of safety and a strong argument against future tax reassessment exposure.
⚠  Watch Out For
⚠
Social Club Concentration Is the Whole Deal Two social club tenants (Social Club, Suite 138/150 at $468,000/yr and Legends Social Club LLC, Suite 101 at $256,680/yr) represent approximately 49% of total base rent. If either tenant vacates, defaults, or loses its license, the NOI drops materially. Verify payment history, permits, and guarantees before underwriting.
⚠
$20M Asking Price Is a Pro Forma Number The seller's $20M price implies an 8.49% cap on fully stabilized pro forma NOI of $1,697,418 — not on current in-place income. At $20M, the buyer is paying for lease-up that has not happened. The in-place NOI at $20M is only a 7.15% cap. Do not underwrite $20M without verified stabilization.
⚠
Package Omits Management, TI, LC, and Capex The financial package shows $0 for management fee, tenant improvements, leasing commissions, and capital expenditures. For a 77K SF non-anchor retail center, that is unrealistic. A conservative buyer should deduct a 3% management fee (~$52K/yr) and a $0.25/SF reserve (~$19K/yr), reducing effective NOI to approximately $1,358,000.
⚠
Lender Sensitivity to Tenant Mix Social clubs, poker rooms, smoke shops, and food mart uses may face lender scrutiny. Some conventional lenders will haircut or exclude income from entertainment/gaming-adjacent tenants. Confirm debt availability and loan terms based on the actual tenant mix before going hard on a contract.

Financial Analysis

The Numbers

Income Summary
Scheduled Base Rent $1,471,218
Reimbursement Income $273,547
Effective Gross Revenue $1,744,765
Total Operating Expenses ($315,163)
Year 1 NOI $1,429,602
Pro Forma (Fully Stabilized)
Pro Forma Base Rent $1,697,418
Pro Forma NOI $1,697,418
Risk-Adjusted NOI (Redlands)
Less 3% Mgmt on EGR ($52,343)
Less $0.25/SF Reserve ($19,312)
Risk-Adjusted NOI $1,357,948
Valuation & Offer Guidance
Asking Price $20,000,000
Price / SF $258.91/SF
Cap Rate at Ask 7.15% (Year 1)
Redlands Guidance
Opening Offer $15.25M – $15.75M
Suggested Strike Price $15.5M – $16.0M
Conditional Stretch $17.0M – $17.25M
Walk-Away Price $17.5M
Cap Rate Scenarios on Year 1 NOI
Value at 8.0% Cap $17,870,025
Value at 8.5% Cap $16,818,847
Value at 9.0% Cap $15,884,467
HCAD Appraised Value $18,342,281

Tenant Schedule

Rent Roll

Tenant Suite SF Lease Expiry Annual Rent $/SF Type
Legends Social Club LLC 101 7,750 Aug 2031 $256,680 $33.12 NNN
Zoul Cafe & Restaurant 102 2,000 Nov 2028 $84,192 $42.10 NNN
Kabul Groceries 114/118 6,600 Dec 2029 $70,194 $10.64 NNN
Vacant 123 4,200 — $0 — NNN
Social Club 138/150 18,750 Jun 2034 $468,000 $24.96 NNN
Vacant 160 4,000 — $0 — NNN
Smoke Shop 161 2,000 Nov 2029 $48,000 $24.00 NNN
Groceries World 162 2,800 Jul 2027 $72,000 $25.71 NNN
Vacant 166 2,000 — $0 — NNN
Houston Best Claw 168 2,200 Jan 2029 $52,800 $24.00 NNN
Aroma Washateria 169 3,956 Jan 2032 $47,472 $12.00 NNN
Tasty Bites Kitchen 170 2,800 Dec 2028 $81,600 $29.14 NNN
Hair Salon 178 1,000 Jun 2028 $43,200 $43.20 NNN
La Michacana 180-188 11,990 Apr 2032 $143,880 $12.00 NNN
La Delicia Michoana 190 2,000 Jul 2028 $36,000 $18.00 NNN
Ocee Food Mart 199 3,200 May 2041 $67,200 $21.00 NNN
Total / Occupied: 14 tenants  ·  Vacant: 3 suites 77,246 SF 86.8% Occ. $1,471,218 $19.05

Market Context

Valuation Benchmarks

Scenario / Benchmark Price / Value Cap Rate NOI Basis Notes
Subject: 9275 Richmond Ave (Ask) $20,000,000 7.15% / 8.49% Year 1 / Pro Forma Seller pricing off pro forma stabilization
Redlands Strike Target $15.5M – $16.0M 8.96% – 9.22% Year 1 NOI Risk-adjusted, reflects tenant concentration
In-Place NOI at 8.0% Cap $17,870,025 8.00% $1,429,602 Clean current income, no management deduction
In-Place NOI at 8.5% Cap $16,818,847 8.50% $1,429,602 Aligns with seller's lower $16.8M figure
Risk-Adjusted NOI at 8.0% Cap $16,974,350 8.00% $1,357,948 After 3% mgmt + $0.25/SF reserve deduction
HCAD 2026 Appraised Value $18,342,281 — County Assessment Strike below HCAD = built-in margin of safety
Pro Forma Stabilized at 8.5% Cap $19,969,624 8.50% $1,697,418 Seller's $20M story; requires full lease-up

The deal is not about whether the NOI is big — it is. The real question is how durable the tenant base is, and how much a buyer should pay for non-anchor retail income with major social club concentration. At $15.5M–$16M, the buyer gets an 8.96%–9.22% cap on verified Year 1 income while the seller absorbs the pro forma risk.

Location

Richmond Ave, Inner Southwest Houston

9275 Richmond Ave, Houston TX 77063  ·  Inner Southwest Submarket  ·  Richmond Ave / Ocee St corridor  ·  Westchase / Meyerland area

Property Photography

The Center

Street View, 9275 Richmond Ave frontage road, Jan 2025
Richmond Commons listing summary Google Maps street-level context, Richmond Ave / Ocee St Aerial satellite context, Inner Southwest Houston HCAD ownership and valuation record

Property Details

Quick Facts

Address
9275 Richmond Ave
Houston, TX 77063
Submarket
Inner Southwest
Market Area 5009 — Westchase / Meyerland
Building Size
77,246 SF
76,847 SF per HCAD · 17 Suites
Land Size
5.32 Acres
231,948 SF · Strip Shopping Center
Occupancy
86.8%
14 Tenants · 3 Vacant Suites (10,200 SF)
Year Built
1985
Renovated 2023
Construction
Concrete Tilt-Up
16 ft Wall Height · Metal Storefront
Lease Structure
NNN
All tenants on NNN leases
Avg Rent / SF
$19.05/SF
Scheduled base rent, occupied suites
Top Tenant
Social Club
$468,000/yr · 18,750 SF · Exp. Jun 2034
HCAD Value (2026)
$18.34M
Strike below assessed value
Deal Type
Value-Add
Lease-Up + Tenant Stickiness Play

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. All numbers remain subject to rent roll, HCAD, survey, and physical due diligence verification. Tenant income quality, social club licensing, and lease durability must be independently verified. Full financials and offering memorandum available after NDA execution. Redlands Commercial Group · Brokered by Walzel Properties · TX Lic #697734