Remodeled Mixed-Use
For Sale
$850,000
1002 Medical Drive, Killeen, TX 76543
CommercialSale, Killeen, TX
Property Size7,170 SF
Lot Size0.67 Acres
Price / SF$118.55
Days on Market407
Property Features for 1002 Medical Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B-3
Parking features
Driveway
Interior features
BedroomOnMainLevel, FullBathOnMainLevel
Accessibility
Accessible Approach with Ramp
Subdivision
W S S Add
Lot features
Half To One Acre Lot
Elementary school district
Killeen ISD
Middle school district
Killeen ISD
High school district
Killeen ISD
Directions
From Rancier Avenue, turn North on Medical Drive and the property is at the end of the cul-d-sac.
Standard status
Active
APN
402886
Size
7,170 SF
Lot size
0.67 Acres
Taxes and HOA fees
Tax Year
2024
Tax Description
W S S ADDITION, BLOCK 006, LOT 002B
Tax Annual Amount
3794
Legal Description
W S S ADDITION, BLOCK 006, LOT 002B
Utilities
Sewer type
Public Sewer
Heating system
Central, Electric (Heating)
Cooling system
Central Air, Electric
Water source
Public
Amenities
fire alarm system
security system
recreation area
ping pong table
foosball machine
children's books
large fenced back yard partially covered
laundry room
washing machines
dryers
kitchen
dining area
ADA bathrooms
Building Details
Year built
1989
Floors in Building
1
Flooring type
Laminate, Tile, Carpet
Building materials
Brick, Masonry
Listing Agency:
Jim Wright Company
(254) 526-5117
Listed By:
Jim Wright · License #0181945
(254) 289-3145
Added: Jul 13, 2025
Changed: Aug 20
Last Checked: Aug 23 at 3:06AM
MLS# 563331
Copyright © 2026 Central Texas Multiple Listing Service. 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 7,170-square-foot mixed-use facility on 0.6707 acres was remodeled a few years ago and includes 42 twin beds, multiple ADA bathrooms, offices, a kitchen with vent hood and range, dining space, and an indoor recreation area. The property also has laundry facilities with two washing machines and two dryers, two 100-gallon water heaters, fire alarm and sprinkler systems, security equipment, and furnishings including tables, chairs, desks, couches, books, and a ping pong table.
A large fenced backyard is partially covered, while paved parking and a driveway provide on-site vehicle access. The building sits at the end of a cul-de-sac and includes an accessible approach with ramp. Constructed in 1989, the property has brick and masonry construction, laminate, tile, and carpet flooring, central electric heating and cooling, public water, public sewer, and B-3 zoning.
A large fenced backyard is partially covered, while paved parking and a driveway provide on-site vehicle access. The building sits at the end of a cul-de-sac and includes an accessible approach with ramp. Constructed in 1989, the property has brick and masonry construction, laminate, tile, and carpet flooring, central electric heating and cooling, public water, public sewer, and B-3 zoning.
Key Highlights
- 7,170 square feet on 0.6707 acres
- 42 twin beds with multiple ADA bathrooms
- Kitchen with vent hood and range, plus dining area
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
$67,757
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
7.97%
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%
$1,355,140
$1.4M
Cap Rate 7%
$967,957
$968.0K
Cap Rate 9%
$752,856
$752.9K
Market Conditions
NOI Build-Up for 7,170 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
$120.5K $16.80/SF
− Vacancy
−$12.0K −$1.68/SF
EGI
$108.4K $15.12/SF
− OpEx
−$40.7K −$5.67/SF
NOI
$67.8K $9.45/SF
Area
Killeen, TX
Vacancy
10.00%
Lease Rate
$16.80 /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%
$1,355,140
Cap Rate 7%
$967,957
Cap Rate 9%
$752,856
Alternative Uses
Best Use
Mixed Use
$968.0K
$847.0K – $1.13M
NOI $67,757 @ 7.0% cap · market cap 7.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.72M
$1.51M – $2.01M
NOI $120,552 @ 7.0% cap · market cap 14.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
409
Businesses Nearby
Explore this area
Business Placement
Demographics for 76543, TX
30,545
Population
15,300
Households
2
Avg Household Size
30
Median Age
15%
College-Educated
91%
High-School Grad
35.6 sq mi
ZIP Area
858
Density / Sq Mi
$51,239
Median Household Income
$31,712
Median Earnings
$1,099
Median Rent
$140,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Existing improvements include sleeping rooms, offices, food-service areas, laundry, recreation space, and accessible bathrooms.
Where is this mixed-use property located?
The property is located at 1002 Medical Drive Killeen, TX.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 7,170 square feet on 0.6707 acres; 42 twin beds with multiple ADA bathrooms; Kitchen with vent hood and range, plus dining area
