Insulated Flex Space with Shop
For Sale
$2,500,000
1256 County Road 401, Merkel, TX 79536
CommercialSale, Merkel, TX
Property Size13,200 SF
Lot Size53.51 Acres
Price / SF$189.39
Days on Market49
Property Features for 1256 County Road 401
General Information
Property type
Commercial Sale
Property subtype
Other
Parking features
Garage, Carport, Oversize, Open, Driveway, Covered
Directions
I-20 to FM 126, go North to 14th St, Directly across from Tin Cup RV Park.
Standard status
Active
APN
974520
Size
13,200 SF
Lot size
53.51 Acres
Taxes and HOA fees
Tax Description
A0072 SUR 148 GRIMES COUNTY SCHOOL, TRACT W P
Tax Annual Amount
14419
Legal Description
A0072 SUR 148 GRIMES COUNTY SCHOOL, TRACT W P
Utilities
Sewer type
Septic Tank
Heating system
Electric (Heating)
Cooling system
Multi Units, Electric
Water source
Well
Amenities
commercial kitchen
wash bays
elevator
carports
deluxe bathroom
Building Details
Year built
2020
Floors in Building
2
Number of units
1
Flooring type
Laminate, Vinyl, Concrete, Combination
Building materials
MetalSiding, Concrete, SteelSiding
Roof type
Metal
Listing Agency:
Tommy Simons (office)
(325) 721-8800
Listed By:
Tommy Simons · License #0583499
(325) 721-8800
Added: Jul 12
Changed: Aug 22
Last Checked: Aug 29 at 1:06AM
MLS# 21299444
Copyright © 2026 North Texas Real Estate Information Systems, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2020 flex property includes two fully insulated commercial buildings, several outbuildings, and living quarters with bathrooms. The main building combines substantial shop space with a commercial kitchen equipped with a stove, ovens, fryer, refrigerator vent, three-bay sink, and ice maker. A heavy-duty electric elevator connects to a partial second floor engineered for substantial loads. The secondary building offers wash bays and garage doors suited to vehicle, equipment, fabrication, detailing, or support operations.
Water and site infrastructure include seven active wells with pumps, two maintained tanks, a septic system, and asphalt millings across the yard. Multiple tall carports can shelter more than 20 vehicles or RVs, with additional interior and open parking for trucks and heavy equipment. High-voltage transmission lines run along the property edge, and three-phase power can be installed.
Water and site infrastructure include seven active wells with pumps, two maintained tanks, a septic system, and asphalt millings across the yard. Multiple tall carports can shelter more than 20 vehicles or RVs, with additional interior and open parking for trucks and heavy equipment. High-voltage transmission lines run along the property edge, and three-phase power can be installed.
Key Highlights
- Two fully insulated commercial buildings plus multiple outbuildings
- 7 active water wells with pumps and 2 maintained tanks
- Main building includes a fully equipped commercial kitchen
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$190,736
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.63%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,814,720
$3.8M
Cap Rate 7%
$2,724,800
$2.7M
Cap Rate 9%
$2,119,289
$2.1M
Market Conditions
NOI Build-Up for 13,200 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$289.9K $21.96/SF
− Vacancy
−$17.4K −$1.32/SF
EGI
$272.5K $20.64/SF
− OpEx
−$81.7K −$6.19/SF
NOI
$190.7K $14.45/SF
Area
Taylor County, TX
Vacancy
6.00%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,814,720
Cap Rate 7%
$2,724,800
Cap Rate 9%
$2,119,289
Alternative Uses
Best Use
Retail
$2.72M
$2.38M – $3.18M
NOI $190,736 @ 7.0% cap · market cap 7.63%
Second Best
Flex RnD
$1.47M
$1.28M – $1.71M
NOI $102,687 @ 7.0% cap · market cap 4.11%
Theoretical Best
Multifamily LT 5
$129.12M
$112.98M – $150.63M
NOI $9,038,051 @ 7.0% cap · market cap 361.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
6
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79536, TX
5,133
Population
2,313
Households
2.2
Avg Household Size
41
Median Age
14%
College-Educated
93%
High-School Grad
295.9 sq mi
ZIP Area
17
Density / Sq Mi
$71,346
Median Household Income
$41,208
Median Earnings
$1,187
Median Rent
$133,300
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Versatile commercial property with insulated buildings, water infrastructure, equipment areas, and covered vehicle storage.
Where is this flex space located?
The property is located at 1256 County Road 401 Merkel, TX.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: Two fully insulated commercial buildings plus multiple outbuildings; 7 active water wells with pumps and 2 maintained tanks; Main building includes a fully equipped commercial kitchen
