Live-Work Loft with Ground-Floor
For Sale
$799,000
205 & 207 E Houston Street, Sherman, TX 75090
COMMERCIAL - Sherman, TX
Property Size4,950 SF
Lot Size0.07 Acres
Price / SF$161.41
Days on Market105
Property Features for 205 & 207 E Houston Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial & residential
Parking features
Alley
Subdivision
Otp Sherman
Directions
From Hwy 75, take Lamar and Houston Street exit, Lamar is one way street going East, Houston is one way going West.
Standard status
Active
APN
161900
Size
4,950 SF
Lot size
0.07 Acres
Taxes and HOA fees
Tax Description
OTP SHERMAN, BLOCK 12, LOT PT 5 & 7, 31.1X100
Tax Annual Amount
12815
Legal Description
OTP SHERMAN, BLOCK 12, LOT PT 5 & 7, 31.1X100
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Amenities
Exposed brick walls
Open concept layout
Two generous bedrooms
Two full baths
Large private back patio
All-seasons room
Building Details
Year built
1900
Floors in Building
2
Number of units
2
Flooring type
Concrete, Carpet, Laminate, Tile
Building materials
Brick
Roof type
Flat
Listing Agency:
Easy Life Realty
(903) 224-5171
Listed By:
Lisa Hitchcock · License #0611932
(903) 224-5171
Added: May 20
Changed: Aug 4
Last Checked: Sep 1 at 6:06PM
MLS# 21125507
Copyright © 2026 North Texas Real Estate Information Systems, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Live-work loft property with brick construction, flat roof, and central heating and central air. The upper level features an open-concept layout with two bedrooms, two full baths, and a large private back patio. An all-seasons room offers flexible space that can function as an at-home office, studio area, or additional living space. Flooring includes carpet, tile, laminate, and concrete.
The street-level portion is set up as retail commercial space with public utilities including public water and public sewer. Parking is supported by alley access. The property is located at 205 & 207 E Houston Street in Historic Downtown Sherman, one block off Sherman Square in Grayson County.
Built in 1900, this arrangement can support a live-here, work-below setup with direct access between the loft and the commercial storefront below.
The street-level portion is set up as retail commercial space with public utilities including public water and public sewer. Parking is supported by alley access. The property is located at 205 & 207 E Houston Street in Historic Downtown Sherman, one block off Sherman Square in Grayson County.
Built in 1900, this arrangement can support a live-here, work-below setup with direct access between the loft and the commercial storefront below.
Key Highlights
- 0.071‑acre live‑work property
- 2, bedrooms, 2 full baths in the upper loft
- Large private back patio off the loft
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
$49,005
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
6.13%
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%
$980,100
$980.1K
Cap Rate 7%
$700,071
$700.1K
Cap Rate 9%
$544,500
$544.5K
Market Conditions
NOI Build-Up for 4,950 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
$89.1K $18.00/SF
− Vacancy
−$10.7K −$2.16/SF
EGI
$78.4K $15.84/SF
− OpEx
−$29.4K −$5.94/SF
NOI
$49.0K $9.90/SF
Area
Grayson County, TX
Vacancy
12.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$980,100
Cap Rate 7%
$700,071
Cap Rate 9%
$544,500
Alternative Uses
Best Use
Office B
$1.18M
$1.03M – $1.38M
NOI $82,799 @ 7.0% cap · market cap 10.36%
Second Best
Retail
$1.17M
$1.03M – $1.37M
NOI $82,162 @ 7.0% cap · market cap 10.28%
Theoretical Best
Hotel Hospitality
$2.54M
$2.22M – $2.96M
NOI $177,755 @ 7.0% cap · market cap 22.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,226
Businesses Nearby
Explore this area
Business Placement
Demographics for 75090, TX
25,002
Population
9,602
Households
2.6
Avg Household Size
35
Median Age
15%
College-Educated
84%
High-School Grad
78.5 sq mi
ZIP Area
318
Density / Sq Mi
$58,586
Median Household Income
$36,230
Median Earnings
$1,111
Median Rent
$163,500
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?
Live-work space - Historic downtown Sherman live-work property with two-bedroom loft above street-level retail, plus a private back patio.
Where is this live-work space located?
The property is located at 205 & 207 E Houston Street Sherman, TX.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: 0.071‑acre live‑work property; 2, bedrooms, 2 full baths in the upper loft; Large private back patio off the loft
