Remodeled Office Building with
For Sale
$479,000
118 W Chestnut St, Denison, TX 75021
Updated professional workspace with private offices, meeting facilities, support areas, and a climate-controlled garage.
Property Size2,337 SF
Price / SF$204.96
Days on Market36
Property Features for 118 W Chestnut St
General Information
Standard status
Active
Size
2,337 SF
Additional Details
Office Units
6
Amenities
conference room
restrooms
kitchen
printer room
attached garage
Building Details
Year Built
1950
Year Renovated
2023
Buildings
1
Tenancy
Multi
Owner Occupied
No
Abandoned
No
Listing Agency:
Bertholf Commercial Real Estate
(903) 267-1573
Listed By:
Terrin Bertholf · License #9014873
Source:
Heritance
Added: Jul 26
Changed: Aug 28
Last Checked: Aug 29 at 12:37PM
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.
Located at 118 W Chestnut St in Denison, this 2,337-square-foot office building underwent a full renovation in 2023. Improvements included a new roof, electrical and plumbing systems, and a complete interior build-out. The floor plan provides six offices sized for a ten-person operation, along with a conference room, two restrooms, kitchen, printer room, and attached garage. Interior details include walnut wall finishes, transom windows, corner glazing, and custom lighting.
The 500 SF climate-controlled garage adds flexible support space for storage, equipment, or fitness use and can be converted to additional office area. The property is currently configured for professional office operations and will be delivered vacant at closing.
The 500 SF climate-controlled garage adds flexible support space for storage, equipment, or fitness use and can be converted to additional office area. The property is currently configured for professional office operations and will be delivered vacant at closing.
Key Highlights
- Full renovation completed in 2023, including roof, electrical, plumbing, and interior finish‑out
- 2,337 SF office building with six offices accommodating ten people
- Large conference room, two restrooms, kitchen, and dedicated 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
Lease Details
6
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
798
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 - Updated professional workspace with private offices, meeting facilities, support areas, and a climate-controlled garage.
Where is this office building located?
The property is located at 118 W Chestnut St 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: Full renovation completed in 2023, including roof, electrical, plumbing, and interior finish‑out; 2,337 SF office building with six offices accommodating ten people; Large conference room, two restrooms, kitchen, and dedicated printer room
