Value Add Hospitality
For Sale
Contact for pricing
1201 E Texas Ave, Mart, TX 76664
Hospitality property for sale with highway access and value-add potential.
Property Size2,928 SF
Price / SF$99.04
Days on Market200
Property Features for 1201 E Texas Ave
General Information
Standard status
Active
Size
2,928 SF
Property subtype
Hospitality
Building Details
Year Built
1960
Stories
1
Listing Agency:
Kelly Commercial
(254) 741-1500
Listed By:
Derek Houser · License #783120
Source:
Crexi
Added: Feb 5
Changed: Aug 8
Last Checked: Aug 22 at 4:26PM
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 Kelly Commercial
Investment Insights
Based on property information with market context.
This hospitality property, comprising 2,928 square feet, is available for sale. The property benefits from highway access and presents a value-add opportunity.
Key Highlights
- 13 Cap Value Add
- Highway Access
- Year Built: 1960
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
$10,514
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
3.63%
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%
$210,280
$210.3K
Cap Rate 7%
$150,200
$150.2K
Cap Rate 9%
$116,822
$116.8K
Market Conditions
NOI Build-Up for 2,928 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
$35.1K $12.00/SF
− Vacancy
−$13.0K −$4.44/SF
EGI
$22.1K $7.56/SF
− OpEx
−$11.6K −$3.97/SF
NOI
$10.5K $3.59/SF
Area
McLennan County, TX
Vacancy
37.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
52.50%
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%
$210,280
Cap Rate 7%
$150,200
Cap Rate 9%
$116,822
Alternative Uses
Best Use
Hotel Hospitality
$150.2K
$131.4K – $175.2K
NOI $10,514 @ 7.0% cap · market cap 3.63%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$36.48M
$31.92M – $42.56M
NOI $2,553,301 @ 7.0% cap · market cap 880.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
119
Businesses Nearby
Explore this area
Business Placement
Demographics for 76664, TX
3,269
Population
1,292
Households
2.5
Avg Household Size
39
Median Age
12%
College-Educated
88%
High-School Grad
132.6 sq mi
ZIP Area
25
Density / Sq Mi
$72,600
Median Household Income
$42,750
Median Earnings
$919
Median Rent
$133,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hospitality property - Hospitality property for sale with highway access and value-add potential.
Where is this hospitality property located?
The property is located at 1201 E Texas Ave Mart, TX.
What is the asking price?
The asking price for this property is $290,000.
What are key features of this property?
This property features: 13 Cap Value Add; Highway Access; Year Built: 1960
