Hill Country Resort
New
For Sale
$5,400,000
12665 Silver Creek Rd, Dripping Springs, TX 78620
Boutique lodging compound with varied accommodations, retreat facilities, and wooded acreage outside city limits and ETJ.
Property Size11,070 SF
Lot Size32.50 Acres
Days on Market2
Property Features for 12665 Silver Creek Rd
General Information
Standard status
Active
Size
11,070 SF
Lot size
32.50 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$35,416
Building Details
Building Size
11,070 SF
Year Built
2017
Listed By:
Vince Gonzalez
(512) 293-9133
Source:
Elliman
Added: Sep 4
Last Checked: Sep 4 at 2:22PM
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 Vince Gonzalez
Investment Insights
Based on property information with market context.
This resort property spans approximately 32.5 acres in the Texas Hill Country and includes a varied lodging program with loft cabins, yurts, a barndominium, and full-size homes. The property has operated since 2016 as a destination rental and retreat compound, accommodating vacation stays, group gatherings, leadership retreats, family events, couples’ getaways, and whole-property rentals. Improvements include gathering areas suited for events and outdoor amenities within a private, heavily wooded setting.
Approximately 15 acres remain undeveloped, and the property has a wildlife exemption in place. It is located outside city limits and the ETJ, with access to Dripping Springs, Bee Cave, and the Austin Metro area. Nearby wineries, breweries, wedding venues, and regional leisure destinations contribute to the surrounding hospitality context.
End-to-end operational management is in place, supporting continued use as a lodging, retreat, and outdoor hospitality asset. The property also offers multiple existing programming channels, including nightly rentals, group stays, leadership retreats, family reunions, and private ranch-style experiences.
Approximately 15 acres remain undeveloped, and the property has a wildlife exemption in place. It is located outside city limits and the ETJ, with access to Dripping Springs, Bee Cave, and the Austin Metro area. Nearby wineries, breweries, wedding venues, and regional leisure destinations contribute to the surrounding hospitality context.
End-to-end operational management is in place, supporting continued use as a lodging, retreat, and outdoor hospitality asset. The property also offers multiple existing programming channels, including nightly rentals, group stays, leadership retreats, family reunions, and private ranch-style experiences.
Key Highlights
- Approximately 32.5 acres in the Texas Hill Country
- Lodging mix includes loft cabins, yurts, a barndominium, and full‑size homes
- Approximately 15 acres of undeveloped land
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
$169,694
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
3.14%
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%
$3,393,880
$3.4M
Cap Rate 7%
$2,424,200
$2.4M
Cap Rate 9%
$1,885,489
$1.9M
Market Conditions
NOI Build-Up for 11,070 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
$325.5K $29.40/SF
− Vacancy
−$16.9K −$1.53/SF
EGI
$308.5K $27.87/SF
− OpEx
−$138.8K −$12.54/SF
NOI
$169.7K $15.33/SF
Area
Hays County, TX
Vacancy
5.20%
Lease Rate
$29.40 /SF/Yr
Expense Ratio
45.00%
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%
$3,393,880
Cap Rate 7%
$2,424,200
Cap Rate 9%
$1,885,489
Alternative Uses
Best Use
Apartment 5plus
$2.42M
$2.12M – $2.83M
NOI $169,694 @ 7.0% cap · market cap 3.14%
Second Best
Hotel Hospitality
$1.43M
$1.25M – $1.67M
NOI $99,949 @ 7.0% cap · market cap 1.85%
Theoretical Best
Office A
$4.63M
$4.05M – $5.40M
NOI $323,928 @ 7.0% cap · market cap 6.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
86
Businesses Nearby
Explore this area
Business Placement
Demographics for 78620, TX
20,493
Population
7,929
Households
2.6
Avg Household Size
43
Median Age
62%
College-Educated
97%
High-School Grad
175.6 sq mi
ZIP Area
117
Density / Sq Mi
$146,551
Median Household Income
$58,583
Median Earnings
$1,674
Median Rent
$624,800
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Resort - Boutique lodging compound with varied accommodations, retreat facilities, and wooded acreage outside city limits and ETJ.
Where is this resort located?
The property is located at 12665 Silver Creek Rd Dripping Springs, TX.
What is the asking price?
The asking price for this property is $5,400,000.
What are key features of this property?
This property features: Approximately 32.5 acres in the Texas Hill Country; Lodging mix includes loft cabins, yurts, a barndominium, and full‑size homes; Approximately 15 acres of undeveloped land
