Commercial Land with Existing
For Sale
$3,250,000
28631 Fm 2978, Magnolia, TX 77354
Unrestricted commercial tract with existing businesses, a residence, water wells, and commercial septic infrastructure.
Property Size7,973 SF
Price / SF$407.63
Days on Market45
Property Features for 28631 Fm 2978
General Information
Standard status
Active
Size
7,973 SF
Building Details
Year Built
1995
Listing Agency:
Keller Williams Realty Brazos Valley office
Listed By:
Karryn Nichols · License #0711839
(979) 219-0541
Source:
Doorstephomegroup
Added: Aug 12
Changed: Sep 10
Last Checked: Sep 24 at 1:32PM
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 Realty Brazos Valley office
Investment Insights
Based on property information with market context.
This 11.2895-acre commercial land tract includes four businesses and a home, creating an existing improved property rather than a vacant site. The parcel has two water wells and commercial septic infrastructure, supporting the current improvements and broader commercial planning. An unrestricted designation provides flexibility for evaluating future use options, including the commercial concepts identified in the property information.
Located at 28631 FM 2978 in Magnolia, the tract provides 414 feet of frontage on FM 2978 at Hardin Store Road. The property is near the Hardin Store Road intersection and is described as being close to new development. Existing improvements were built in 1995.
Located at 28631 FM 2978 in Magnolia, the tract provides 414 feet of frontage on FM 2978 at Hardin Store Road. The property is near the Hardin Store Road intersection and is described as being close to new development. Existing improvements were built in 1995.
Key Highlights
- 11.2895‑acre commercial land tract
- 414 feet of frontage on FM 2978 at Hardin Store Road
- Four businesses and a home are located on the property
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
$108,111
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
3.33%
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%
$2,162,220
$2.2M
Cap Rate 7%
$1,544,443
$1.5M
Cap Rate 9%
$1,201,233
$1.2M
Market Conditions
NOI Build-Up for 7,973 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
$163.6K $20.52/SF
− Vacancy
−$9.2K −$1.15/SF
EGI
$154.4K $19.37/SF
− OpEx
−$46.3K −$5.81/SF
NOI
$108.1K $13.56/SF
Area
Montgomery County, TX
Vacancy
5.60%
Lease Rate
$20.52 /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%
$2,162,220
Cap Rate 7%
$1,544,443
Cap Rate 9%
$1,201,233
Alternative Uses
Best Use
Retail
$1.54M
$1.35M – $1.80M
NOI $108,111 @ 7.0% cap · market cap 3.33%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.01M
$1.76M – $2.35M
NOI $140,896 @ 7.0% cap · market cap 4.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
143
Businesses Nearby
697
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Storage King USA
Shops & Services
697 visits/mo
0.2 miles
Demographics for 77354, TX
40,625
Population
15,747
Households
2.6
Avg Household Size
38
Median Age
42%
College-Educated
93%
High-School Grad
74.2 sq mi
ZIP Area
548
Density / Sq Mi
$112,093
Median Household Income
$58,832
Median Earnings
$1,850
Median Rent
$379,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Commercial land - Unrestricted commercial tract with existing businesses, a residence, water wells, and commercial septic infrastructure.
Where is this commercial land located?
The property is located at 28631 Fm 2978 Magnolia, TX.
What is the asking price?
The asking price for this property is $3,250,000.
What are key features of this property?
This property features: 11.2895‑acre commercial land tract; 414 feet of frontage on FM 2978 at Hardin Store Road; Four businesses and a home are located on the property
