Building Details

Building Size 2,458 SF

Year Built 1967

Listing Agency: Compass RE Texas, LLC

Listed By: Don Cox · License #0259218 Show Phone

Source: Lyon

Added: Jun 24 Changed: Sep 4 Last Checked: Sep 5 at 4:48AM

Report an Issue

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 Compass RE Texas, LLC

Investment Insights

Based on property information with market context.

The property includes a duplex that is identified as a teardown. The available offering presents a redevelopment opportunity on the existing parcel.

The address is 1204 Yaupon Valley Rd in West Lake Hills, TX, approximately five miles west of downtown. Public remarks note that new construction is prevalent in the area.

Because the duplex is stated to be a teardown, buyers should plan for substantial redevelopment to reposition the property for their intended use.

Key Highlights

• Duplex on the property is a teardown
• Located about 5 miles west of downtown
• Property offers redevelopment opportunity in West Lake Hills, TX

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

$41,217

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

4.63%

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%

$824,340 $824.3K

Cap Rate 7%

$588,814 $588.8K

Cap Rate 9%

$457,967 $458.0K

Market Conditions

NOI Build-Up for 2,458 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

$61.9K $25.20/SF

− Vacancy

−$3.1K −$1.24/SF

EGI

$58.9K $23.96/SF

− OpEx

−$17.7K −$7.19/SF

NOI

$41.2K $16.77/SF

Area

Travis County, TX

Vacancy

4.94%

Lease Rate

$25.20 /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%

$824,340

Cap Rate 7%

$588,814

Cap Rate 9%

$457,967

Alternative Uses

Best Use

Multifamily LT 5

$588.8K

$515.2K – $687.0K (±1% cap)

NOI $41,217 @ 7.0% cap · market cap 4.63%

Second Best

Apartment 5plus

$538.3K

$471.0K – $628.0K (±1% cap)

NOI $37,679 @ 7.0% cap · market cap 4.23%

Theoretical Best

Office A

$1.03M

$899.1K – $1.20M (±1% cap)

NOI $71,925 @ 7.0% cap · market cap 8.07%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Duplexes

Suggested Use

Top Pick Auto Repair Shop Building Supply Kitchen & Bath Showroom Big Box & Wholesale Store Garden Center Parking Lot & Garage

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

1,045

Businesses Nearby

Explore this area Business Placement

Demographics for 78746, TX

29,106

Population

11,897

Households

2.4

Avg Household Size

41

Median Age

83%

College-Educated

99%

High-School Grad

22.9 sq mi

ZIP Area

1,271

Density / Sq Mi

$183,028

Median Household Income

$92,124

Median Earnings

$2,097

Median Rent

$1,352,500

Median Home Value

Market

Vacancy Rate% for Multifamily in South region

8.5% 2022

10.2% 2023

11.4% 2024

11.3% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this duplexes located? What is the asking price? Find similar properties What are key features of this property?

Similar For Sale Nearby

Renovated Office Suite

1301 S Capital of Texas Hwy, West Lake Hills, TX 78746

Contact for pricing

2,346 SF

View details

Building A Office Property

3939 Bee Cave Rd, West Lake Hills, TX 78746

Contact for pricing

8,300 SF

View details

Frequently Asked Questions

What type of property is this?

Duplex - Duplex on the property is a teardown, offering an opportunity for redevelopment in West Lake Hills, TX.

Where is this duplex located?

The property is located at 1204 Yaupon Valley RD Unit A&B West Lake Hills, TX.

What is the asking price?

The asking price for this property is $890,900.

What are key features of this property?

This property features: Duplex on the property is a teardown; Located about 5 miles west of downtown; Property offers redevelopment opportunity in West Lake Hills, TX