Lancaster Industrial Park Value-Add
For Sale
$13,500,000
1500-1504 S I-35E & 3105 Lomita Dr, Lancaster, TX 75146
Multi-tenant industrial park with value-add potential in Lancaster, Texas.
Property Size114,440 SF
Price / SF$117.97
Days on Market108
Property Features for 1500-1504 S I-35E & 3105 Lomita Dr
General Information
Standard status
Active
Size
114,440 SF
Property subtype
Industrial - Flex - Industrial
Building Details
Building Size
114,440 SF
Listing Agency:
SLJ Company
(214) 520-8818
Listed By:
Ty Underwood · License #419172
Source:
Commercialcafe
Added: May 14
Changed: Aug 17
Last Checked: Aug 29 at 6:36AM
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 SLJ Company
Investment Insights
Based on property information with market context.
Still Meadow Industrial Park is a multi-tenant industrial asset located in Lancaster, Texas. The property offers frontage along I-35E, which sees over 98,500 vehicles per day. Constructed between 1973 and 2013, the property consists of approximately 114,440 square feet. It features a functional small-bay layout with an average suite size of approximately 4,976 square feet, 36 grade-level and 3 dock-high doors, and clear heights of 14 to 18 feet. The property has a concrete parking lot. The finish-out is 10% office and 90% warehouse, supporting a range of service-oriented and light industrial tenants. The surrounding small-bay industrial submarket is constrained, with a 1.6% flex vacancy and no new supply expected through 2030. The property is located within a growing demographic corridor, with average household incomes exceeding $98,000 and median home values above $281,000 within a three-mile radius. The property is strategically located along I-35E in the Lancaster submarket of southern Dallas County, offering access to Lomita Drive.
Key Highlights
- Significant value‑add opportunity: Increase rents by approximately 45% to match market rates.
- Attractive seller financing: Favorable terms including 80% LTV, 5.0% interest, a 10‑year term, and 3 years of interest‑only payments.
- Below replacement cost basis: Offered at $117.97/SF.
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
$593,235
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
4.39%
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%
$11,864,700
$11.9M
Cap Rate 7%
$8,474,786
$8.5M
Cap Rate 9%
$6,591,500
$6.6M
Market Conditions
NOI Build-Up for 114,440 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
$929.3K $8.12/SF
− Vacancy
−$81.8K −$0.71/SF
EGI
$847.5K $7.41/SF
− OpEx
−$254.2K −$2.22/SF
NOI
$593.2K $5.18/SF
Area
Dallas County, TX
Vacancy
8.80%
Lease Rate
$8.12 /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%
$11,864,700
Cap Rate 7%
$8,474,786
Cap Rate 9%
$6,591,500
Alternative Uses
Best Use
Industrial
$8.47M
$7.42M – $9.89M
NOI $593,235 @ 7.0% cap · market cap 4.39%
Second Best
Flex RnD
$7.91M
$6.92M – $9.23M
NOI $553,575 @ 7.0% cap · market cap 4.10%
Theoretical Best
Multifamily LT 5
$1,371.75M
$1,200.28M – $1,600.38M
NOI $96,022,656 @ 7.0% cap · market cap 711.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
188
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 75146, TX
23,837
Population
9,575
Households
2.5
Avg Household Size
35
Median Age
27%
College-Educated
87%
High-School Grad
34.7 sq mi
ZIP Area
687
Density / Sq Mi
$70,143
Median Household Income
$42,889
Median Earnings
$1,560
Median Rent
$249,000
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- So Savvy Corporate Catering Dallas Fort Worth — 2625 Bear Creek Rd, Lancaster, TX 75146
- DESOTO/CEDARHILL MOBILE MECHANICS — 1311 E Parkerville Rd, DeSoto, TX 75115
Frequently Asked Questions
What type of property is this?
Flex space - Multi-tenant industrial park with value-add potential in Lancaster, Texas.
Where is this flex space located?
The property is located at 1500-1504 S I-35E & 3105 Lomita Dr Lancaster, TX.
What is the asking price?
The asking price for this property is $13,500,000.
What are key features of this property?
This property features: Significant value‑add opportunity: Increase rents by approximately 45% to match market rates.; Attractive seller financing: Favorable terms including 80% LTV, 5.0% interest, a 10‑year term, and 3 years of interest‑only payments.; Below replacement cost basis: Offered at $117.97/SF.
