Commercial Property Near Fort
For Sale
$440,000
3802 Watercrest Rd, Killeen, TX 76549
Office building with additional lot near Fort Hood and hospital.
Property Size2,360 SF
Lot Size1.51 Acres
Days on Market167
Property Features for 3802 Watercrest Rd
General Information
Standard status
Active
Size
2,360 SF
Lot size
1.51 Acres
Property subtype
Commercial
Building Details
Building Size
2,360 SF
Year Built
1960
Stories
1
Listing Agency:
Lone Star Realty & Property Ma
(254) 290-0718
Listed By:
Karen Doerbaum · License #0386068
(254) 290-0718
Source:
Elliman
Added: Mar 10
Changed: Aug 21
Last Checked: Aug 23 at 9:32AM
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 Lone Star Realty & Property Ma
Investment Insights
Based on property information with market context.
This commercial property features an office building and an adjoining 0.94-acre lot. The office building is well-maintained, featuring a metal roof and newer floors installed in most of the building. The layout includes 6 rooms plus a reception area, a full kitchen, and 3 bathrooms. The property is located in a high-traffic area, offering excellent exposure in a busy commercial corridor. Its proximity to Fort Hood and a major hospital creates strong demand from military and healthcare professionals. The property offers immediate rental income and long-term development potential. The additional lot is ideal for expansion or a custom build-to-suit. This property is suitable for investors seeking passive income or business owners looking to build an office while offsetting costs with rental revenue.
Key Highlights
- High‑visibility location in a high‑traffic commercial corridor near Fort Hood and a major hospital
- Office building with established tenants provides immediate rental income
- Adjoining 0.94‑acre lot offers expansion or development potential
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
$31,197
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
7.09%
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%
$623,940
$623.9K
Cap Rate 7%
$445,671
$445.7K
Cap Rate 9%
$346,633
$346.6K
Market Conditions
NOI Build-Up for 2,360 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
$51.0K $21.60/SF
− Vacancy
−$9.4K −$3.97/SF
EGI
$41.6K $17.63/SF
− OpEx
−$10.4K −$4.41/SF
NOI
$31.2K $13.22/SF
Area
Killeen, TX
Vacancy
18.40%
Lease Rate
$21.60 /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%
$623,940
Cap Rate 7%
$445,671
Cap Rate 9%
$346,633
Alternative Uses
Best Use
Office B
$445.7K
$390.0K – $520.0K
NOI $31,197 @ 7.0% cap · market cap 7.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$566.9K
$496.0K – $661.3K
NOI $39,680 @ 7.0% cap · market cap 9.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
93
Businesses Nearby
Explore this area
Business Placement
Demographics for 76549, TX
56,199
Population
21,794
Households
2.6
Avg Household Size
29
Median Age
23%
College-Educated
95%
High-School Grad
94.1 sq mi
ZIP Area
597
Density / Sq Mi
$62,536
Median Household Income
$36,340
Median Earnings
$1,363
Median Rent
$202,100
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Office building with additional lot near Fort Hood and hospital.
Where is this office building located?
The property is located at 3802 Watercrest Rd Killeen, TX.
What is the asking price?
The asking price for this property is $440,000.
What are key features of this property?
This property features: High‑visibility location in a high‑traffic commercial corridor near Fort Hood and a major hospital; Office building with established tenants provides immediate rental income; Adjoining 0.94‑acre lot offers expansion or development potential
