Government Leased Investment
For Sale
Contact for pricing
1711 W HENDERSON ST, Cleburne, TX 76033
Two government-leased properties in Texas available for sale.
Property Size15,675 SF
Price / SF$186.53
Days on Market113
Property Features for 1711 W HENDERSON ST
General Information
Standard status
Active
Size
15,675 SF
Property subtype
Retail, Office
Occupancy
100%
Lease Type
Modified Gross
Investment Type
Institutional
Net Operating Income
$226,707
Building Details
Year Built
2006
Year Renovated
2020
Buildings
2
Tenancy
Single
Listing Agency:
Colonial Commercial Real Estate LLC
(817) 632-6200
Listed By:
Benjamin Berkowitz · License #TX 772676
Source:
Crexi
Added: May 12
Changed: Aug 14
Last Checked: Aug 29 at 1:53PM
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 Colonial Commercial Real Estate LLC
Investment Insights
Based on property information with market context.
Available for sale are two properties leased to the United States government, offering a creditworthy tenant. The tenant is considered mission-critical, having survived a lease termination initiative. Operating costs are adjusted annually for inflation based on the CPI-W. The tax structure features a 2021 base year, offering protection against tax growth. Historically, these properties have experienced a high renewal rate, exceeding corporate NNN averages. The properties provide geographic diversification with exposure in South Texas/Coastal Bend and the Dallas-Fort Worth MSA. Flexible for individual or portfolio sale, suitable for 1031 buyers, private capital, and institutional investors. One of the properties is located at 1711 W HENDERSON ST, CLEBURNE, TX and has a size of 15675 square feet.
Key Highlights
- AA+ Sovereign Credit – backed by the full faith and credit of the United States government.
- Mission‑Critical Tenant – SSA's continued tenancy after the 2025 DOGE lease termination initiative highlights its importance.
- High Historical Renewal Rate – Benefit from a 94–97% historical renewal rate, exceeding corporate NNN averages.
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
$262,196
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
8.97%
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%
$5,243,920
$5.2M
Cap Rate 7%
$3,745,657
$3.7M
Cap Rate 9%
$2,913,289
$2.9M
Market Conditions
NOI Build-Up for 15,675 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
$481.5K $30.72/SF
− Vacancy
−$131.9K −$8.42/SF
EGI
$349.6K $22.30/SF
− OpEx
−$87.4K −$5.58/SF
NOI
$262.2K $16.73/SF
Area
Johnson County, TX
Vacancy
27.40%
Lease Rate
$30.72 /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%
$5,243,920
Cap Rate 7%
$3,745,657
Cap Rate 9%
$2,913,289
Alternative Uses
Best Use
Office B
$3.75M
$3.28M – $4.37M
NOI $262,196 @ 7.0% cap · market cap 8.97%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$187.89M
$164.40M – $219.21M
NOI $13,152,352 @ 7.0% cap · market cap 449.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
525
Businesses Nearby
Explore this area
Business Placement
Demographics for 76033, TX
27,243
Population
10,962
Households
2.5
Avg Household Size
39
Median Age
21%
College-Educated
88%
High-School Grad
176.1 sq mi
ZIP Area
155
Density / Sq Mi
$69,870
Median Household Income
$40,168
Median Earnings
$1,287
Median Rent
$230,600
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?
Office building - Two government-leased properties in Texas available for sale.
Where is this office building located?
The property is located at 1711 W HENDERSON ST Cleburne, TX.
What is the asking price?
The asking price for this property is $2,923,931.
What are key features of this property?
This property features: AA+ Sovereign Credit – backed by the full faith and credit of the United States government.; Mission‑Critical Tenant – SSA's continued tenancy after the 2025 DOGE lease termination initiative highlights its importance.; High Historical Renewal Rate – Benefit from a 94–97% historical renewal rate, exceeding corporate NNN averages.
