Vineyard and Winery
For Sale
$3,500,000
1213 Kott Road Unit 1, Fredericksburg, TX 78624
Texas Hill Country property with a pond and an approximately 4,500 SF barn suited for a tasting room concept.
Property Size4,550 SF
Price / SF$769.23
Days on Market47
Property Features for 1213 Kott Road Unit 1
General Information
Standard status
Active
Size
4,550 SF
Property subtype
Commercial
Building Details
Year Built
1990
Listing Agency:
Phyllis Browning Company (2108247878)
Listed By:
Brian Stamness · License #0700794
(210) 232-7381
Source:
Phyllisbrowning
Added: Jul 21
Changed: Aug 21
Last Checked: Sep 5 at 8:48AM
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 (2108247878)
Investment Insights
Based on property information with market context.
La Marguerite is a versatile Texas Hill Country property offered for sale as a redevelopment canvas. The site features approximately 60+/- acres of rolling landscape and an existing one-acre pond. A 4,500 SF barn built using the framing of a 200+ year old Amish barn is on site and can be positioned as a tasting room for a winery concept.
The property is located about 12 miles from Fredericksburg off Highway 16 south, providing a rural hospitality and destination setting.
While the offering highlights wine and tasting room possibilities, the improvements and landscape are also presented as a fit for a boutique hotel or bed-and-breakfast redevelopment plan.
The property is located about 12 miles from Fredericksburg off Highway 16 south, providing a rural hospitality and destination setting.
While the offering highlights wine and tasting room possibilities, the improvements and landscape are also presented as a fit for a boutique hotel or bed-and-breakfast redevelopment plan.
Key Highlights
- Texas Hill Country property with a pond and approximately 60 +/- acres
- About 4,500 SF barn built in 1990, suited for a tasting room concept
- Barn built using the framing of a 200+ year old Amish barn
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
Current Use
Location Intelligence
Trade Area within ½ mile
5
Businesses Nearby
Well-served
Demand for This Use
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?
Bed & breakfast - Texas Hill Country property with a pond and an approximately 4,500 SF barn suited for a tasting room concept.
Where is this bed & breakfast located?
The property is located at 1213 Kott Road Unit 1 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: Texas Hill Country property with a pond and approximately 60 +/- acres; About 4,500 SF barn built in 1990, suited for a tasting room concept; Barn built using the framing of a 200+ year old Amish barn
