Historic Retail Building with Industrial
For Sale
$200,000
218 S Main Street, Kemp, TX 75143
Includes an industrial kitchen with equipment, a front lobby/waiting area, and two bathrooms.
Property Size2,500 SF
Days on Market27
Property Features for 218 S Main Street
General Information
Standard status
Active
Size
2,500 SF
Property subtype
Commercial
Zoning
Commercial Main
Building Details
Building Size
2,500 SF
Year Built
1900
Stories
3
Units
2
Listing Agency:
Keller Williams Prosper Celina
(469) 336-9487
Listed By:
Farrah Zargaran · License #0672874
(469) 336-9487
Source:
Cornerstonehomeandranch
Added: Jul 27
Changed: Aug 8
Last Checked: Aug 21 at 1:49PM
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 Keller Williams Prosper Celina
Investment Insights
Based on property information with market context.
Offered for sale at 218 S Main Street in Kemp, Texas, this well-maintained, recently renovated historic commercial building is configured with a front lobby or waiting room that can serve as a reception or office entry. The property also features an industrial kitchen with equipment intended to stay with the new owner, along with two bathrooms.
Access includes a front entry and a back door, and the site provides additional land space that could support an outdoor patio area with a view. The building is described as having been featured on the Discovery Channel, adding to its local recognition and visibility for established businesses.
The interior layout supports a range of uses, including retail and specialty services, business or medical office operations, and restaurant concepts, supported by the existing industrial kitchen equipment. The back-door/outdoor area and proximity to a park next door are additional considerations for businesses seeking a customer-facing setting.
Access includes a front entry and a back door, and the site provides additional land space that could support an outdoor patio area with a view. The building is described as having been featured on the Discovery Channel, adding to its local recognition and visibility for established businesses.
The interior layout supports a range of uses, including retail and specialty services, business or medical office operations, and restaurant concepts, supported by the existing industrial kitchen equipment. The back-door/outdoor area and proximity to a park next door are additional considerations for businesses seeking a customer-facing setting.
Key Highlights
- 1900‑built commercial property at 218 S Main St in Kemp, TX
- Industrial kitchen includes equipment that stays with the new owner
- Front lobby/waiting room provides space for a reception or office lobby
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
$16,088
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
8.04%
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%
$321,760
$321.8K
Cap Rate 7%
$229,829
$229.8K
Cap Rate 9%
$178,756
$178.8K
Market Conditions
NOI Build-Up for 2,500 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
$24.9K $9.96/SF
− Vacancy
−$1.9K −$0.77/SF
EGI
$23.0K $9.19/SF
− OpEx
−$6.9K −$2.76/SF
NOI
$16.1K $6.44/SF
Area
Kaufman County, TX
Vacancy
7.70%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
30.00%
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%
$321,760
Cap Rate 7%
$229,829
Cap Rate 9%
$178,756
Alternative Uses
Best Use
Specialty Retail
$638.5K
$558.7K – $744.9K
NOI $44,694 @ 7.0% cap · market cap 22.35%
Second Best
Office B
$614.7K
$537.8K – $717.1K
NOI $43,027 @ 7.0% cap · market cap 21.51%
Theoretical Best
Multifamily LT 5
$31.46M
$27.53M – $36.71M
NOI $2,202,454 @ 7.0% cap · market cap 1,101.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
119
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 75143, TX
15,349
Population
7,088
Households
2.2
Avg Household Size
45
Median Age
18%
College-Educated
86%
High-School Grad
181.9 sq mi
ZIP Area
84
Density / Sq Mi
$68,996
Median Household Income
$41,273
Median Earnings
$1,163
Median Rent
$173,200
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 - Includes an industrial kitchen with equipment, a front lobby/waiting area, and two bathrooms.
Where is this medical office space located?
The property is located at 218 S Main Street Kemp, TX.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: 1900‑built commercial property at 218 S Main St in Kemp, TX; Industrial kitchen includes equipment that stays with the new owner; Front lobby/waiting room provides space for a reception or office lobby
