Remodeled Office
New
For Sale
$479,000
118 W Chestnut Street, Denison, TX 75021
Professionally finished office property with private workspaces, conference facilities, support areas, and an attached climate-controlled garage.
Property Size2,337 SF
Days on Market3
Property Features for 118 W Chestnut Street
General Information
Standard status
Active
Size
2,337 SF
Property subtype
Commercial
Zoning
Zoned light industrial, but functionally
Building Details
Building Size
2,337 SF
Year Built
1950
Stories
1
Units
1
Listing Agency:
Bertholf Commercial Real Estate
(903) 267-1573
Listed By:
Terrin Bertholf · License #9014873
(903) 267-1573
Source:
Cornerstonehomeandranch
Added: Aug 9
Changed: Aug 10
Last Checked: Aug 10 at 6:36AM
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 Bertholf Commercial Real Estate
Investment Insights
Based on property information with market context.
Remodeled in 2023, this office building received new roofing, electrical, plumbing, and interior finishes. The current arrangement includes six offices designed for ten people, a large conference room, two restrooms, a kitchen, a printer room, and an attached garage. Walnut wall finishes, transom windows, corner glazing, and custom lighting add character to the workplace.
The 500 SF climate-controlled garage provides dedicated auxiliary space for storage, equipment, fitness use, or conversion to additional office area. The property is currently operated as a professional office and will be delivered vacant at closing. Its layout supports professional office users including title, legal, brokerage, accounting, and financial advisory practices. The property is located at 118 W Chestnut Street in Denison, Texas, and was originally built in 1950.
The 500 SF climate-controlled garage provides dedicated auxiliary space for storage, equipment, fitness use, or conversion to additional office area. The property is currently operated as a professional office and will be delivered vacant at closing. Its layout supports professional office users including title, legal, brokerage, accounting, and financial advisory practices. The property is located at 118 W Chestnut Street in Denison, Texas, and was originally built in 1950.
Key Highlights
- 2023 remodel included roofing, electrical, plumbing, and complete interior finish work
- Six offices configured to accommodate ten people
- Large conference room, two restrooms, kitchen, and printer room
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
$39,091
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
8.16%
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%
$781,820
$781.8K
Cap Rate 7%
$558,443
$558.4K
Cap Rate 9%
$434,344
$434.3K
Market Conditions
NOI Build-Up for 2,337 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
$71.8K $30.72/SF
− Vacancy
−$19.7K −$8.42/SF
EGI
$52.1K $22.30/SF
− OpEx
−$13.0K −$5.58/SF
NOI
$39.1K $16.73/SF
Area
Grayson County, TX
Vacancy
27.40%
Lease Rate
$30.72 /SF/Yr
Expense Ratio
25.00%
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%
$781,820
Cap Rate 7%
$558,443
Cap Rate 9%
$434,344
Alternative Uses
Best Use
Office B
$558.4K
$488.6K – $651.5K
NOI $39,091 @ 7.0% cap · market cap 8.16%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$1.20M
$1.05M – $1.40M
NOI $83,922 @ 7.0% cap · market cap 17.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
811
Businesses Nearby
Explore this area
Business Placement
Demographics for 75021, TX
8,288
Population
3,871
Households
2.1
Avg Household Size
44
Median Age
17%
College-Educated
90%
High-School Grad
58.4 sq mi
ZIP Area
142
Density / Sq Mi
$67,159
Median Household Income
$36,955
Median Earnings
$900
Median Rent
$188,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Professionally finished office property with private workspaces, conference facilities, support areas, and an attached climate-controlled garage.
Where is this office building located?
The property is located at 118 W Chestnut Street Denison, TX.
What is the asking price?
The asking price for this property is $479,000.
What are key features of this property?
This property features: 2023 remodel included roofing, electrical, plumbing, and complete interior finish work; Six offices configured to accommodate ten people; Large conference room, two restrooms, kitchen, and printer room
