Commercial Redevelopment Pad
New
For Sale
$2,500,000
4400 W Waco Dr, Waco, TX 76710
The parcel sits along an established commercial corridor and is being offered for ground-up redevelopment.
Property Size14,163 SF
Days on Market7
Property Features for 4400 W Waco Dr
General Information
Standard status
Active
Size
14,163 SF
Property subtype
Office
Building Details
Building Size
14,163 SF
Listing Agency:
Cromwell Commercial Group
(254) 313-0000
Listed By:
Will Phipps · License #0744913
(254) 313-0000
Source:
Cbcworldwide
Added: Aug 1
Changed: Aug 2
Last Checked: Aug 7 at 12:42AM
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 Cromwell Commercial Group
Investment Insights
Based on property information with market context.
This 1.89-acre commercial land parcel is positioned for redevelopment along Waco’s established commercial corridor. The site previously contained Connally/Compton Funeral Directors, and the existing structure is expected to be demolished rather than retained as part of a new project.
The property is being marketed for a ground-up pad development, with convenience store, quick-service restaurant, and similar commercial uses identified in the available information. Its configuration as a redevelopment site allows the future project to be planned around the intended use rather than the existing building.
The property is being marketed for a ground-up pad development, with convenience store, quick-service restaurant, and similar commercial uses identified in the available information. Its configuration as a redevelopment site allows the future project to be planned around the intended use rather than the existing building.
Key Highlights
- 1.89‑acre commercial redevelopment parcel
- Located on an established Waco commercial corridor
- Existing building is expected to be demolished
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
$196,905
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
7.88%
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%
$3,938,100
$3.9M
Cap Rate 7%
$2,812,929
$2.8M
Cap Rate 9%
$2,187,833
$2.2M
Market Conditions
NOI Build-Up for 14,163 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
$314.4K $22.20/SF
− Vacancy
−$51.9K −$3.66/SF
EGI
$262.5K $18.54/SF
− OpEx
−$65.6K −$4.63/SF
NOI
$196.9K $13.90/SF
Area
Waco, TX
Vacancy
16.50%
Lease Rate
$22.20 /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%
$3,938,100
Cap Rate 7%
$2,812,929
Cap Rate 9%
$2,187,833
Alternative Uses
Best Use
Office B
$2.81M
$2.46M – $3.28M
NOI $196,905 @ 7.0% cap · market cap 7.88%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.74M
$3.27M – $4.36M
NOI $261,562 @ 7.0% cap · market cap 10.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
985
Businesses Nearby
Explore this area
Business Placement
Demographics for 76710, TX
24,874
Population
12,391
Households
2
Avg Household Size
38
Median Age
32%
College-Educated
92%
High-School Grad
9.3 sq mi
ZIP Area
2,675
Density / Sq Mi
$53,304
Median Household Income
$36,425
Median Earnings
$1,098
Median Rent
$229,000
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?
Commercial land - The parcel sits along an established commercial corridor and is being offered for ground-up redevelopment.
Where is this commercial land located?
The property is located at 4400 W Waco Dr Waco, TX.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 1.89‑acre commercial redevelopment parcel; Located on an established Waco commercial corridor; Existing building is expected to be demolished
