Insulated Industrial
New
For Sale
$599,900
18243 N Highway 6, Valley Mills, TX 76689
A 2012 industrial building with full spray foam insulation and Highway 6 frontage near Downtown Valley Mills.
Property Size5,000 SF
Price / SF$119.98
Days on Market7
Property Features for 18243 N Highway 6
General Information
Standard status
Active
Size
5,000 SF
Building Details
Year Built
2012
Listing Agency:
Kelly, Realtors
(254) 741-1500
Listed By:
Nathan Embry · License #668380
Source:
Heritance
Added: Aug 23
Changed: Aug 28
Last Checked: Aug 29 at 12:15PM
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 Kelly, Realtors
Investment Insights
Based on property information with market context.
This industrial property consists of a building constructed in 2012 with 100% spray foam insulation. The building fronts Highway 6, providing a defined position along the highway corridor.
The property is located near Downtown Valley Mills at 18243 N Highway 6 in Valley Mills, Texas.
The property is located near Downtown Valley Mills at 18243 N Highway 6 in Valley Mills, Texas.
Key Highlights
- 100% spray foam insulation
- Constructed in 2012
- Highway 6 frontage
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
$44,195
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
7.37%
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%
$883,900
$883.9K
Cap Rate 7%
$631,357
$631.4K
Cap Rate 9%
$491,056
$491.1K
Market Conditions
NOI Build-Up for 5,000 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
$69.0K $13.80/SF
− Vacancy
−$5.9K −$1.17/SF
EGI
$63.1K $12.63/SF
− OpEx
−$18.9K −$3.79/SF
NOI
$44.2K $8.84/SF
Area
Bosque County, TX
Vacancy
8.50%
Lease Rate
$13.80 /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%
$883,900
Cap Rate 7%
$631,357
Cap Rate 9%
$491,056
Alternative Uses
Best Use
Industrial
$631.4K
$552.4K – $736.6K
NOI $44,195 @ 7.0% cap · market cap 7.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.32M
$1.15M – $1.54M
NOI $92,340 @ 7.0% cap · market cap 15.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4
Businesses Nearby
Explore this area
Business Placement
Demographics for 76689, TX
3,991
Population
1,782
Households
2.2
Avg Household Size
42
Median Age
20%
College-Educated
91%
High-School Grad
223.9 sq mi
ZIP Area
18
Density / Sq Mi
$76,250
Median Household Income
$46,881
Median Earnings
$1,135
Median Rent
$228,800
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - A 2012 industrial building with full spray foam insulation and Highway 6 frontage near Downtown Valley Mills.
Where is this industrial property located?
The property is located at 18243 N Highway 6 Valley Mills, TX.
What is the asking price?
The asking price for this property is $599,900.
What are key features of this property?
This property features: 100% spray foam insulation; Constructed in 2012; Highway 6 frontage
