3803 Bute St 6,692 SF 67% Leased Retail Building Houston, TX 77006 $2,200,000 ($328.75/SF) 5.39% Cap Rate

FOR SALE | 321 West Alabama & 3803 Bute Street – Houston, TX 77006
Mid-Century, Two-Level Mixed-Use Asset | Owner-User Opportunity | Rare Large Parking Lot – Old Montrose
Located in Historic First Montrose Commons on the edge of Midtown, this corner-to-corner property offers a compelling combination of in-place income, near-term occupancy opportunity, and significant underlying land value — a rare alignment in Montrose.
The property sits on approximately 12,500 SF of land, including an oversized on-site parking lot — a true differentiator in this submarket — and is currently offered at $2,200,000.
Investment & Owner-User Highlights
• Suite #6 at 3803 Bute (~2,200 SF) now available for lease or potential owner occupancy - see attached floor plan.
• Additional front commercial space expected to become available early next year, providing further flexibility or upside to market rents
• Gross Scheduled Income (2025): Approx. $176,760/year
• Operating Expenses (2024): Approx. $58,015
• NOI: Approx. $118,745/year (˜5.4% cap rate at stabilization)
• Existing commercial rents appear below current market levels
• Ability to increase income over time while occupying a portion of the asset
This is not purely a land play — it is a functioning income property with embedded upside and flexibility for an owner-user or investor.
Property Overview
• Approx. 6,720 SF of improvements
• Approx. 12,500 SF corner-to-corner tract
• 7 total leasable units
Unit Mix:
• Four updated studio/efficiency apartments (~500 SF each)
• Two large commercial/retail suites (~4,000 SF combined) - see floor plans of both spaces.
• One ~1,000 SF workshop/storage unit (currently owner-occupied)
Suite #6 (approx. 2,200 SF) has just been brought to market for lease - see floor plan.
All-electric, individually metered units. Natural gas available.
Owner pays water and dumpster. Commercial tenants reimburse taxes and insurance (NN) and cover electricity, HVAC, and interior maintenance.
Key Features
• Rare oversized parking lot — a major competitive advantage in Montrose
• Corner-to-corner frontage:
– Approx. 42’ on West Alabama
– Approx. 249’ on Bute
– Approx. 60’ on Sul Ross
• Located within Historic First Montrose Commons
• Non-contributing structure (no historic restriction overlay)
This offering provides a unique opportunity to acquire a centrally located Montrose asset with immediate income, near-term leasing and occupancy flexibility, and long-term land value support.
Few properties in this submarket combine:
• Scale of land
• On-site parking
• Mixed-use income
• Owner-user potential
48-hour notice required for showings. Broker to accompany.
Contact broker for rent roll, operating statements, and additional financials.