Freestanding Grocery
For Sale
$19,387,500
1940 N Hwy 77, Waxahachie, TX 75165
Newly developed Tom Thumb location with long-term lease coverage and scheduled rent increases.
Property Size58,750 SF
Days on Market193
Property Features for 1940 N Hwy 77
General Information
Standard status
Active
Size
58,750 SF
Property subtype
Free Standing Building
Additional Details
Traffic Count
29,000 vehicles/day
Building Details
Building Size
58,750 SF
Year Built
2024
Tenancy
Single
Listing Agency:
Trinity Real Estate Investment Services
(817) 768-6364
Listed By:
Brad Motley · License #586199
(817) 768-6364
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 29
Last Checked: Aug 29 at 1:02PM
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 Trinity Real Estate Investment Services
Investment Insights
Based on property information with market context.
This freestanding Tom Thumb grocery store at 1940 N Hwy 77 in Waxahachie was developed in 2024. The lease provides more than 19 years of remaining primary term, with limited landlord responsibilities, a guarantee from Albertsons, and 5% rent increases every 5 years during the primary term and renewal options.
The property sits across from Waxahachie Marketplace, a fully occupied power center with Academy, TJ Maxx, Five Below, and Raising Cane’s. The site benefits from exposure to 29,000+ vehicles per day along N Grove Blvd and US Hwy 77. The surrounding trade area includes 58,000+ residents within 5 miles and an average household income exceeding $109K. Downtown Dallas is 24 miles north.
The property sits across from Waxahachie Marketplace, a fully occupied power center with Academy, TJ Maxx, Five Below, and Raising Cane’s. The site benefits from exposure to 29,000+ vehicles per day along N Grove Blvd and US Hwy 77. The surrounding trade area includes 58,000+ residents within 5 miles and an average household income exceeding $109K. Downtown Dallas is 24 miles north.
Key Highlights
- New 2024 Tom Thumb grocery store development
- 19+ years remaining with minimal landlord responsibilities
- Albertsons guarantee
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
$1,050,309
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
5.42%
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%
$21,006,180
$21.0M
Cap Rate 7%
$15,004,414
$15.0M
Cap Rate 9%
$11,670,100
$11.7M
Market Conditions
NOI Build-Up for 58,750 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
$1.47M $24.96/SF
− Vacancy
−$66.0K −$1.12/SF
EGI
$1.40M $23.84/SF
− OpEx
−$350.1K −$5.96/SF
NOI
$1.05M $17.88/SF
Area
Ellis County, TX
Vacancy
4.50%
Lease Rate
$24.96 /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%
$21,006,180
Cap Rate 7%
$15,004,414
Cap Rate 9%
$11,670,100
Alternative Uses
Best Use
Specialty Retail
$15.00M
$13.13M – $17.51M
NOI $1,050,309 @ 7.0% cap · market cap 5.42%
Second Best
Retail
$13.93M
$12.19M – $16.25M
NOI $975,156 @ 7.0% cap · market cap 5.03%
Theoretical Best
Multifamily LT 5
$641.06M
$560.93M – $747.90M
NOI $44,874,152 @ 7.0% cap · market cap 231.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
29,000 VPD
Traffic count
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
15
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 75165, TX
49,805
Population
18,940
Households
2.6
Avg Household Size
36
Median Age
28%
College-Educated
90%
High-School Grad
118.0 sq mi
ZIP Area
422
Density / Sq Mi
$84,780
Median Household Income
$45,677
Median Earnings
$1,473
Median Rent
$308,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Newly developed Tom Thumb location with long-term lease coverage and scheduled rent increases.
Where is this grocery and convenience store located?
The property is located at 1940 N Hwy 77 Waxahachie, TX.
What is the asking price?
The asking price for this property is $19,387,500.
What are key features of this property?
This property features: New 2024 Tom Thumb grocery store development; 19+ years remaining with minimal landlord responsibilities; Albertsons guarantee
