Hill Country Commercial
For Sale
$3,500,000
1213 Kott Rd, Fredericksburg, TX 78624
Rolling Texas Hill Country land with a pond and expansive views near Fredericksburg.
Property Size4,550 SF
Price / SF$769.23
Days on Market33
Property Features for 1213 Kott Rd
General Information
Standard status
Active
Size
4,550 SF
Building Details
Year Built
1990
Listing Agency:
Phyllis Browning Company
(210) 232-7381
Listed By:
Brian Stamness · License #0700794
Source:
Sarahildebrandaguilera
Added: Jul 28
Changed: Aug 29
Last Checked: Aug 26 at 10:00AM
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 Phyllis Browning Company
Investment Insights
Based on property information with market context.
This commercial land offering encompasses 60 acres of rolling Texas Hill Country landscape. The property includes a one-acre pond, expansive views, and scenic terrain, providing a substantial setting for future redevelopment or hospitality-oriented concepts identified in the property information.
The site is located 12 miles from Fredericksburg along Highway 16 south, with an address at 1213 Kott Rd. Its combination of acreage, water feature, and Hill Country setting distinguishes the tract from a conventional commercial parcel.
The site is located 12 miles from Fredericksburg along Highway 16 south, with an address at 1213 Kott Rd. Its combination of acreage, water feature, and Hill Country setting distinguishes the tract from a conventional commercial parcel.
Key Highlights
- 60 acres in the Texas Hill Country
- One‑acre pond on the property
- 12 miles from Fredericksburg
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
$241,196
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
6.89%
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%
$4,823,920
$4.8M
Cap Rate 7%
$3,445,657
$3.4M
Cap Rate 9%
$2,679,956
$2.7M
Market Conditions
NOI Build-Up for 4,550 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
$546.0K $120.00/SF
− Vacancy
−$38.2K −$8.40/SF
EGI
$507.8K $111.60/SF
− OpEx
−$266.6K −$58.59/SF
NOI
$241.2K $53.01/SF
Area
Gillespie County, TX
Vacancy
7.00%
Lease Rate
$120.00 /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%
$4,823,920
Cap Rate 7%
$3,445,657
Cap Rate 9%
$2,679,956
Alternative Uses
Best Use
Hotel Hospitality
$3.45M
$3.01M – $4.02M
NOI $241,196 @ 7.0% cap · market cap 6.89%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5
Businesses Nearby
Explore this area
Business Placement
Demographics for 78624, TX
23,080
Population
12,421
Households
1.9
Avg Household Size
52
Median Age
37%
College-Educated
89%
High-School Grad
742.3 sq mi
ZIP Area
31
Density / Sq Mi
$67,987
Median Household Income
$37,047
Median Earnings
$1,347
Median Rent
$439,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Rolling Texas Hill Country land with a pond and expansive views near Fredericksburg.
Where is this commercial land located?
The property is located at 1213 Kott Rd Fredericksburg, TX.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 60 acres in the Texas Hill Country; One‑acre pond on the property; 12 miles from Fredericksburg
