Overview
Iconic 1925 Landmark Transformed into Class A Residences
Historic Luxury Redevelopment Originally built in 1925 as the United States National Bank, USNB is a 12-story historic landmark meticulously redeveloped in 2020 into Class A multifamily and retail space. Designed by renowned architect David Watson, the property masterfully blends historic grandeur with modern luxury finishes, offering residents an unparalleled living experience in the heart of Galveston.
Significant Long-Term Tax Savings
Transferable Tax Abatements USNB benefits from valuable City of Galveston tax abatements awarded for the property’s historic restoration. These abatements are transferable and provide meaningful ongoing savings. The agreements include a 35% reduction in city taxes from 2020–2025 and a frozen taxable value of $1,985,750 through 2032 — substantially enhancing investment returns.
Stabilized Multifamily and Retail Revenue Streams
Mixed-Use Income Diversification The property features a diversified income mix with 61 luxury multifamily units and two retail spaces, including a Frost Bank branch which has occupied this building for 100 years. This combination of residential and commercial tenants offers a balanced revenue profile and additional income stability for investors.
Investment Highlights
Flexible Repositioning Potential
Adaptive Reuse Opportunity With one of the two retail leases expiring next year, new ownership has the opportunity to maximize value by repurposing the space into three additional apartment units, a single high-end penthouse, or by re-leasing to a new commercial tenant. This flexibility allows investors to align the property’s use with market demand and optimize returns.
Optional Exit Flexibility and Premium Value Creation
Condo Conversion Potential USNB’s individual apartment units can be converted into condominiums, providing ownership with strategic exit flexibility. This structure enables a future sale either as a stabilized multifamily asset to an institutional investor or as individual condo units to end-users. By unlocking the potential for retail pricing on a per-unit basis, new ownership could significantly enhance total asset value and maximize disposition proceeds.
Below-Market 3.83% Agency Loan with Six Years Remaining
Attractive Assumable Financing USNB offers the ability to assume attractive existing agency financing at a below-market 3.83% interest rate with six years of term remaining. This favorable debt structure provides strong in-place leverage, enhances cash flow, and reduces interest rate risk in today’s higher-rate environment.
Property Overview
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