3803 Bute St 6,692 SF 67% Leased Retail Building Houston, TX 77006 $2,781,808 CAD ($415.69 CAD/SF) 5.95% Cap Rate

FOR SALE | 321 West Alabama & 3803 Bute Street – Houston, TX 77006
Mid-Century Mixed-Use Asset | Owner-User Opportunity | Large On-Site Parking Lot | Old Montrose
Offered at: $1,995,000
Located in Historic First Montrose Commons on the edge of Midtown, this unique corner-to-corner mixed-use property offers a compelling combination of in-place income, near-term occupancy flexibility, and significant underlying land value — a rare alignment in Montrose.
Situated on approximately 12,500 SF of land with a large on-site parking field, the property combines stable existing income with future upside through lease-up, rent growth, and potential owner occupancy.
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Investment & Owner-User Highlights
• Suite #6 at 3803 Bute (~2,200 SF) is currently vacant and available for lease or potential owner occupancy
• Additional front commercial space currently leased, with future flexibility as leases mature
• Historical Gross Scheduled Income (2025 – fully occupied): Approx. $176,760/year
• Historical Operating Expenses (2024): Approx. $58,015/year
• Historical Stabilized NOI: Approx. $118,745/year
• Approx. 5.95% cap rate based on historical stabilized operations and current offering price
• Existing commercial rents appear below current market levels
• Opportunity for an owner-user to occupy a portion of the property while maintaining income from remaining tenants
• Long-term ability to increase income through lease-up and future rent adjustments
This is not simply a land play — it is a functioning mixed-use property with immediate occupancy flexibility, in-place income, and embedded upside in one of Houston’s most supply-constrained inner-loop neighborhoods.
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Property Overview
• Approx. 6,720 SF of improvements
• Approx. 12,500 SF corner-to-corner tract
• Seven (7) total leasable units
Unit Mix:
• Four updated studio/efficiency apartments (~500 SF each)
• Two commercial/retail suites totaling approximately 4,000 SF
• One approximately 1,000 SF workshop/storage unit currently owner-occupied
Suite #6 (~2,200 SF) is currently vacant and being actively marketed for lease. The space also provides a potential owner-user occupancy opportunity and is well-suited for office, wellness, studio, gallery, boutique retail, or creative commercial use.
Floor plans for both commercial spaces are available within the listing package.
All units are individually metered and all-electric. Natural gas is available to the property.
Owner pays water and dumpster service. Commercial tenants reimburse taxes and insurance (NN) and are responsible for electricity, HVAC maintenance, and interior repairs.
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Key Features
• Large on-site parking lot — a major competitive advantage in Montrose
• Corner-to-corner frontage:
– Approx. 42’ on West Alabama
– Approx. 249’ on Bute Street
– Approx. 60’ on Sul Ross
• Located within Historic First Montrose Commons
• Non-contributing structure (not subject to historic preservation restrictions)
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Positioning
Few properties in this submarket combine:
• Significant land area
• Large on-site parking
• Mixed-use income
• Multiple future occupancy options
• Owner-user flexibility
• Long-term redevelopment potential
The offering provides immediate cash flow with the ability to reposition portions of the asset over time as leases roll and occupancy needs evolve.
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48-hour notice required for showings. Broker to accompany.
Contact broker for rent roll, operating statements, floor plans, and additional financial information.