Leased Medical Office
For Sale
$449,000
103 McKinney Street, Farmersville, TX 75442
Leased medical facility offers a layout suited for patient care and professional offices, with new HVAC and hot water heater.
Property Size2,363 SF
Days on Market34
Property Features for 103 McKinney Street
General Information
Standard status
Active
Size
2,363 SF
Property subtype
Commercial
Zoning
Downtown Commercial
Building Details
Building Size
2,363 SF
Year Built
1900
Units
1
Listing Agency:
Coldwell Banker Apex, REALTORS
(903) 456-6801
Listed By:
Jamie NeSmith · License #759300
(903) 456-6801
Source:
Vickiesteam
Added: Jul 22
Changed: Aug 16
Last Checked: Aug 23 at 1:17PM
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 Coldwell Banker Apex, REALTORS
Investment Insights
Based on property information with market context.
103 McKinney Street is a leased commercial building operating as a medical facility. The property is configured to support medical or professional use, with a functional layout that can accommodate patient care spaces, offices, and specialized services.
Located in Historic Downtown Farmersville, Texas, the building is positioned for client, patient, and staff access and visibility. It is described as being minutes from local amenities and major thoroughfares.
Recent improvements include a new HVAC system and new hot water heater.
Located in Historic Downtown Farmersville, Texas, the building is positioned for client, patient, and staff access and visibility. It is described as being minutes from local amenities and major thoroughfares.
Recent improvements include a new HVAC system and new hot water heater.
Key Highlights
- Leased building operating as a medical facility with an established tenant in place
- 1900‑built property with a layout suited for patient care, offices, or specialized services
- New HVAC and new hot water heater
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
$32,858
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
7.32%
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%
$657,160
$657.2K
Cap Rate 7%
$469,400
$469.4K
Cap Rate 9%
$365,089
$365.1K
Market Conditions
NOI Build-Up for 2,363 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
$61.5K $26.04/SF
− Vacancy
−$6.8K −$2.86/SF
EGI
$54.8K $23.18/SF
− OpEx
−$21.9K −$9.27/SF
NOI
$32.9K $13.91/SF
Area
Collin County, TX
Vacancy
11.00%
Lease Rate
$26.04 /SF/Yr
Expense Ratio
40.00%
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%
$657,160
Cap Rate 7%
$469,400
Cap Rate 9%
$365,089
Alternative Uses
Best Use
Healthcare Medical
$469.4K
$410.7K – $547.6K
NOI $32,858 @ 7.0% cap · market cap 7.32%
Second Best
Office B
$428.1K
$374.6K – $499.5K
NOI $29,967 @ 7.0% cap · market cap 6.67%
Theoretical Best
Industrial
$2.35M
$2.05M – $2.74M
NOI $164,361 @ 7.0% cap · market cap 36.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
339
Businesses Nearby
Explore this area
Business Placement
Demographics for 75442, TX
11,241
Population
4,060
Households
2.8
Avg Household Size
39
Median Age
18%
College-Educated
85%
High-School Grad
107.6 sq mi
ZIP Area
104
Density / Sq Mi
$84,591
Median Household Income
$48,482
Median Earnings
$1,501
Median Rent
$330,000
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 center - Leased medical facility offers a layout suited for patient care and professional offices, with new HVAC and hot water heater.
Where is this medical center located?
The property is located at 103 McKinney Street Farmersville, TX.
What is the asking price?
The asking price for this property is $449,000.
What are key features of this property?
This property features: Leased building operating as a medical facility with an established tenant in place; 1900‑built property with a layout suited for patient care, offices, or specialized services; New HVAC and new hot water heater
