Downtown Investment Opportunity in
For Sale
$3,218,000
1018 - 1020 Franklin Ave, Waco, TX 76701
Fully leased retail building near major downtown developments.
Property Size9,600 SF
Price / SF$335.21
Days on Market354
Property Features for 1018 - 1020 Franklin Ave
General Information
Standard status
Active
Size
9,600 SF
Property subtype
Retail
Listing Agency:
Cromwell Commercial Group
(254) 313-0000
Listed By:
Gregg Glime · License #0620081
(254) 313-0000
Source:
Cbcworldwide
Added: Sep 10, 2025
Changed: May 21
Last Checked: Apr 9 at 9:00PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Cromwell Commercial Group
Investment Insights
Based on property information with market context.
This investment opportunity is located in downtown Waco. The 0.48-acre property is anchored by Milo and situated near the recently completed 100,000+ square foot Magnolia HQ. The property is also within walking distance of the new riverfront development and the Baylor Basketball Arena. The building is fully leased with well-known tenants and is prominently located at the lighted intersection of Franklin Avenue and 11th Street.
Key Highlights
- Fully leased building with strong, well‑known tenants.
- Prime downtown location at the lighted intersection of Franklin Avenue and 11th Street.
- Anchored by Milo, a prominent tenant.
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
$111,868
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
3.48%
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%
$2,237,360
$2.2M
Cap Rate 7%
$1,598,114
$1.6M
Cap Rate 9%
$1,242,978
$1.2M
Market Conditions
NOI Build-Up for 9,600 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
$178.6K $18.60/SF
− Vacancy
−$18.7K −$1.95/SF
EGI
$159.8K $16.65/SF
− OpEx
−$47.9K −$4.99/SF
NOI
$111.9K $11.65/SF
Area
Waco, TX
Vacancy
10.50%
Lease Rate
$18.60 /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%
$2,237,360
Cap Rate 7%
$1,598,114
Cap Rate 9%
$1,242,978
Alternative Uses
Best Use
Retail
$1.60M
$1.40M – $1.86M
NOI $111,868 @ 7.0% cap · market cap 3.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.53M
$2.22M – $2.95M
NOI $177,293 @ 7.0% cap · market cap 5.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,131
Businesses Nearby
9k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 47%
Dining 22%
Home Improvements & Furnishings 18%
Electronics 13%
L&L Hawaiian Barbecue
Dining
1,982 visits/mo
0.4 miles
Terminix
Shops & Services
1,630 visits/mo
0.4 miles
Cash America Pawn
Shops & Services
1,436 visits/mo
0.4 miles
Metro by T-Mobile
Electronics
1,228 visits/mo
0.4 miles
Sherwin-Williams Paint Store
Home Improvements & Furnishings
1,036 visits/mo
0.2 miles
Demographics for 76701, TX
1,674
Population
1,029
Households
1.6
Avg Household Size
29
Median Age
32%
College-Educated
92%
High-School Grad
1.1 sq mi
ZIP Area
1,522
Density / Sq Mi
$24,593
Median Household Income
$21,897
Median Earnings
$1,008
Median Rent
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Fully leased retail building near major downtown developments.
Where is this retail space located?
The property is located at 1018 - 1020 Franklin Ave Waco, TX.
What is the asking price?
The asking price for this property is $3,218,000.
What are key features of this property?
This property features: Fully leased building with strong, well‑known tenants.; Prime downtown location at the lighted intersection of Franklin Avenue and 11th Street.; Anchored by Milo, a prominent tenant.
