Mixed-Use Property with
For Sale
$665,000
601 Houston School Road, Red Oak, TX 75154
CommercialSale, Red Oak, TX
Property Size5,281 SF
Lot Size0.68 Acres
Price / SF$125.92
Days on Market37
Property Features for 601 Houston School Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
No zoning or deed restrictions.
Parking features
Garage, Carport, Driveway, RV
Fireplace
1
Subdivision
Western Hills
Directions
GPS
Standard status
Active
APN
197633
Lot size
0.68 Acres
Taxes and HOA fees
Tax Description
LOT SE PT 10 BLK A WESTERN HILLS .6832 AC
Tax Annual Amount
3161
Legal Description
LOT SE PT 10 BLK A WESTERN HILLS .6832 AC
Utilities
Sewer type
Septic Tank
Heating system
Central, Fireplace(s)
Cooling system
Ceiling Fan(s), Central Air
Water source
Public
Amenities
kitchenette
Building Details
Year built
1989
Floors in Building
1
Number of units
3
Flooring type
Concrete, Tile
Building materials
Brick
Roof type
Metal, Mixed, Composition
Listing Agency:
Relo Radar
(817) 774-9077
Listed By:
Josh Mills · License #0523527
(214) 701-3467
Added: Aug 28
Changed: Sep 22
Last Checked: Oct 3 at 5:06PM
MLS# 21371750
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 mixed-use property includes several structures suited to office, studio, workshop, storage, and residential configurations. The primary 1,785-square-foot building includes a layout that can be adapted for single- or multi-suite office use. A detached 420-square-foot studio has a kitchenette, while the 3,076-square-foot metal garage-shop includes a second-floor area for inventory, equipment, or materials. Covered storage measuring 12 by 50 feet is located behind a secured metal fence.
The 0.683-acre property occupies a corner location at 601 Houston School Road in Red Oak, with direct access from the Loop 9 frontage road. It is positioned across from a 172-acre data center and carries dual commercial and residential zoning. Additional physical features include concrete and tile flooring, central air, public water, a septic tank, and garage, carport, driveway, and RV parking.
The 0.683-acre property occupies a corner location at 601 Houston School Road in Red Oak, with direct access from the Loop 9 frontage road. It is positioned across from a 172-acre data center and carries dual commercial and residential zoning. Additional physical features include concrete and tile flooring, central air, public water, a septic tank, and garage, carport, driveway, and RV parking.
Key Highlights
- 3,076‑square‑foot metal garage‑shop with second‑floor storage area
- 1,785‑square‑foot primary structure adaptable to single- or multi‑suite office use
- Detached 420‑square‑foot studio with kitchenette
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
$60,599
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
9.11%
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%
$1,211,980
$1.2M
Cap Rate 7%
$865,700
$865.7K
Cap Rate 9%
$673,322
$673.3K
Market Conditions
NOI Build-Up for 5,281 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
$114.1K $21.60/SF
− Vacancy
−$17.1K −$3.24/SF
EGI
$97.0K $18.36/SF
− OpEx
−$36.4K −$6.89/SF
NOI
$60.6K $11.48/SF
Area
Ellis County, TX
Vacancy
15.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,211,980
Cap Rate 7%
$865,700
Cap Rate 9%
$673,322
Alternative Uses
Best Use
Mixed Use
$865.7K
$757.5K – $1.01M
NOI $60,599 @ 7.0% cap · market cap 9.11%
Second Best
Warehouse
$524.6K
$459.0K – $612.1K
NOI $36,723 @ 7.0% cap · market cap 5.52%
Theoretical Best
Multifamily LT 5
$57.62M
$50.42M – $67.23M
NOI $4,033,709 @ 7.0% cap · market cap 606.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Fenced yard
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
14
Businesses Nearby
Explore this area
Business Placement
Demographics for 75154, TX
45,894
Population
17,170
Households
2.7
Avg Household Size
36
Median Age
31%
College-Educated
88%
High-School Grad
47.8 sq mi
ZIP Area
960
Density / Sq Mi
$96,150
Median Household Income
$48,112
Median Earnings
$1,446
Median Rent
$296,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Flexible site with multiple structures, covered storage, and commercial-residential zoning near Loop 9 frontage access.
Where is this mixed-use property located?
The property is located at 601 Houston School Road Red Oak, TX.
What is the asking price?
The asking price for this property is $665,000.
What are key features of this property?
This property features: 3,076‑square‑foot metal garage‑shop with second‑floor storage area; 1,785‑square‑foot primary structure adaptable to single- or multi‑suite office use; Detached 420‑square‑foot studio with kitchenette
