Building Details

Building Size 36,574 SF

Year Built 1999

Year Renovated 2025

Listing Agency: Tabani Realty s***@tabanirealty.com Show Phone

Listed By: Salman (Sam) Tabani · License #TX #0546558 Show Phone

Source: Tabanirealty

Added: Mar 5 Changed: Aug 8 Last Checked: Aug 8 at 2:15PM

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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 Tabani Realty

Investment Insights

Based on property information with market context.

The Sleep Inn in Cedar Hill, Texas, presents an investment opportunity in the growing suburban market of Southwest Dallas. Located off Highway 67, the property benefits from visibility and access to major transportation routes. The hotel features 68 well-appointed Designed to Dream® rooms. The location is near the Cedar Hill Shopping District, Joe Pool Lake, Cedar Hill State Park, Epic Waters Indoor Waterpark, American Airlines Center, Duncanville Fieldhouse, and AT&T Stadium. Dallas Love Field and Dallas/Fort Worth International Airport are also within driving distance. The area experiences consistent demand from business travelers, families, and tourists visiting nearby attractions. The hotel features modern amenities, efficient operations, and a reputation for quality service, positioning it well to capitalize on the region's upward trajectory. With a robust local economy and increasing tourism, this Sleep Inn presents a compelling opportunity for owner/operators seeking a turnkey asset in a high-demand market with strong upside potential.

Key Highlights

• Proven business model as a Sleep Inn with 68 Designed to Dream® rooms, ensuring guest comfort and satisfaction.
• Strategic location in a growing market off Highway 67 with high visibility and easy access to major transportation routes.
• Proximity to key attractions like Joe Pool Lake, Cedar Hill State Park, and AT&T Stadium, driving tourism and occupancy.

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

$330,219

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

5.08%

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%

$6,604,380 $6.6M

Cap Rate 7%

$4,717,414 $4.7M

Cap Rate 9%

$3,669,100 $3.7M

Market Conditions

NOI Build-Up for 36,574 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

$790.0K $21.60/SF

− Vacancy

−$94.8K −$2.59/SF

EGI

$695.2K $19.01/SF

− OpEx

−$365.0K −$9.98/SF

NOI

$330.2K $9.03/SF

Area

Bastrop County, TX

Vacancy

12.00%

Lease Rate

$21.60 /SF/Yr

Expense Ratio

52.50%

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%

$6,604,380

Cap Rate 7%

$4,717,414

Cap Rate 9%

$3,669,100

Alternative Uses

Best Use

Hotel Hospitality

$4.72M

$4.13M – $5.50M (±1% cap)

NOI $330,219 @ 7.0% cap · market cap 5.08%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$14.33M

$12.54M – $16.72M (±1% cap)

NOI $1,003,249 @ 7.0% cap · market cap 15.43%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Hotels

Suggested Use

Top Pick Storage Facility Building Supply (Bike/Boat/Book/etc) Store Big Box & Wholesale Store Furniture & Home Goods Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

190

Businesses Nearby

Explore this area Business Placement

Demographics for 75104, TX

49,749

Population

17,365

Households

2.9

Avg Household Size

37

Median Age

31%

College-Educated

91%

High-School Grad

36.9 sq mi

ZIP Area

1,348

Density / Sq Mi

$91,147

Median Household Income

$46,579

Median Earnings

$1,886

Median Rent

$274,900

Median Home Value

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Hotel - 68-room hotel near Dallas attractions and major highways.

Where is this hotel located?

The property is located at 1439 North Highway 67 Cedar Hill, TX.

What is the asking price?

The asking price for this property is $6,500,000.

What are key features of this property?

This property features: Proven business model as a Sleep Inn with **68 Designed to Dream® rooms, ensuring guest comfort and satisfaction.**; Strategic location in a growing market off Highway 67 with **high visibility and easy access to major transportation routes.**; Proximity to key attractions like Joe Pool Lake, Cedar Hill State Park, and AT&T Stadium, **driving tourism and occupancy.**