Neighborhood Commercial Development
For Sale
$250,000
3401 Stone Road, Kilgore, TX 75662
COMMERCIAL - Kilgore, TX
Property Size1,744 SF
Lot Size2.88 Acres
Price / SF$143.35
Days on Market361
Property Features for 3401 Stone Road
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
From red light at 259 and Stone Road / FM 2204, head on Stone Road for 1.5 miles and property will be on the left.
Subdivision
KILGORE ISD 442
Standard status
Active
Lot size
2.88 Acres
Building Details
Year built
1950
Number of units
1
Roof type
Composition
Listing Agency:
East Texas Preferred Properties, LLC - Kilgore
(903) 984-0115
Listed By:
Greg Holmes
(903) 985-6603
Added: Aug 29, 2025
Changed: Aug 7
Last Checked: Aug 24 at 3:06AM
MLS# 20255953
Copyright © 2026 Longview Area Association of Realtors. 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 2.88-acre commercial tract is zoned Neighborhood Commercial and offers flexibility for a range of development and business uses, including retail, office space, service businesses, or a mixed-use concept.
Located on Stone Road, the property is positioned along a well-traveled corridor with frontage for business exposure. In addition to the land, there is a tenant-occupied home onsite built in 1950 with 1,744 square feet, providing income while plans for what comes next are developed.
With the existing home already in place and the remainder of the site available for design, this property supports phased planning and long-term development on the same parcel.
Located on Stone Road, the property is positioned along a well-traveled corridor with frontage for business exposure. In addition to the land, there is a tenant-occupied home onsite built in 1950 with 1,744 square feet, providing income while plans for what comes next are developed.
With the existing home already in place and the remainder of the site available for design, this property supports phased planning and long-term development on the same parcel.
Key Highlights
- 2.88‑acre commercial tract on Stone Road in Kilgore at 3401 Stone Road
- Zoned Neighborhood Commercial, offering flexibility for retail, office, service businesses, or mixed use
- Frontage on Stone Road provides daily visibility to passing traffic
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
$13,036
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
5.21%
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%
$260,720
$260.7K
Cap Rate 7%
$186,229
$186.2K
Cap Rate 9%
$144,844
$144.8K
Market Conditions
NOI Build-Up for 1,744 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
$25.3K $14.52/SF
− Vacancy
−$1.6K −$0.93/SF
EGI
$23.7K $13.59/SF
− OpEx
−$10.7K −$6.12/SF
NOI
$13.0K $7.47/SF
Area
Gregg County, TX
Vacancy
6.40%
Lease Rate
$14.52 /SF/Yr
Expense Ratio
45.00%
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%
$260,720
Cap Rate 7%
$186,229
Cap Rate 9%
$144,844
Alternative Uses
Best Use
Apartment 5plus
$186.2K
$163.0K – $217.3K
NOI $13,036 @ 7.0% cap · market cap 5.21%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$1.31M
$1.15M – $1.53M
NOI $91,952 @ 7.0% cap · market cap 36.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
89
Businesses Nearby
Explore this area
Business Placement
Demographics for 75662, TX
25,002
Population
9,474
Households
2.6
Avg Household Size
37
Median Age
18%
College-Educated
83%
High-School Grad
126.8 sq mi
ZIP Area
197
Density / Sq Mi
$65,926
Median Household Income
$37,027
Median Earnings
$1,051
Median Rent
$165,700
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - Zoned Neighborhood Commercial with frontage on Stone Road and a tenant-occupied 1950 home onsite.
Where is this commercial land located?
The property is located at 3401 Stone Road Kilgore, TX.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 2.88‑acre commercial tract on Stone Road in Kilgore at 3401 Stone Road; Zoned Neighborhood Commercial, offering flexibility for retail, office, service businesses, or mixed use; Frontage on Stone Road provides daily visibility to passing traffic
