Medical Office Building Near
For Sale
$1,900,000
204 W Windcrest St, Fredericksburg, TX 78624
Strategically located medical office building across from Methodist Hospital Hill
Property Size7,144 SF
Lot Size0.88 Acres
Price / SF$265.96
Days on Market502
Property Features for 204 W Windcrest St
General Information
Standard status
Active
Size
7,144 SF
Lot size
0.88 Acres
Taxes and HOA fees
Annual Taxes
$13,247
Listing Agency:
Real Estate Advisory Team, LLC
(830) 456-4348
Listed By:
Clayton Sears · License #TREC#0740990
(830) 456-4348
Source:
Exprealty
Added: Apr 8, 2025
Changed: Aug 20
Last Checked: Aug 21 at 11:20AM
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 Real Estate Advisory Team, LLC
Investment Insights
Based on property information with market context.
This 7,144 square foot medical office building is located across the street from Methodist Hospital Hill Country. Situated on a 38,332 square foot C-1 zoned lot, the property is suited for medical or healthcare-related services. The first floor features 9 exam rooms, 3 private offices, a large reception and waiting area, 3 half bathrooms, a break room, file rooms, a nurses station, and storage. The second story includes a large office, storage, a full bathroom, a laundry room, and a kitchenette. The property includes a paved parking lot in the front for patients and covered parking in the back for employees.
Key Highlights
- Prime location directly across from Methodist Hospital Hill Country.
- Ideal for medical or healthcare‑related services with existing layout of 9 exam rooms, 3 offices, and nurses station.
- Large 7,144 SF building on a 38,332 SF C‑1 zoned lot suitable for various commercial uses.
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
$95,480
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
5.03%
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%
$1,909,600
$1.9M
Cap Rate 7%
$1,364,000
$1.4M
Cap Rate 9%
$1,060,889
$1.1M
Market Conditions
NOI Build-Up for 7,144 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
$169.7K $23.76/SF
− Vacancy
−$42.4K −$5.94/SF
EGI
$127.3K $17.82/SF
− OpEx
−$31.8K −$4.46/SF
NOI
$95.5K $13.37/SF
Area
Gillespie County, TX
Vacancy
25.00%
Lease Rate
$23.76 /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%
$1,909,600
Cap Rate 7%
$1,364,000
Cap Rate 9%
$1,060,889
Alternative Uses
Best Use
Office B
$1.36M
$1.19M – $1.59M
NOI $95,480 @ 7.0% cap · market cap 5.03%
Second Best
Healthcare Medical
$773.2K
$676.6K – $902.1K
NOI $54,126 @ 7.0% cap · market cap 2.85%
Theoretical Best
Hotel Hospitality
$5.41M
$4.73M – $6.31M
NOI $378,703 @ 7.0% cap · market cap 19.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
754
Businesses Nearby
Balanced
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
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Strategically located medical office building across from Methodist Hospital Hill
Where is this medical office space located?
The property is located at 204 W Windcrest St Fredericksburg, TX.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Prime location directly across from Methodist Hospital Hill Country.; Ideal for medical or healthcare‑related services with existing layout of 9 exam rooms, 3 offices, and nurses station.; Large 7,144 SF building on a 38,332 SF C‑1 zoned lot suitable for various commercial uses.
