Historic Downtown Sherman Mixed-Use
For Sale
Contact for pricing
205 E Houston St, Sherman, TX 75090
Mixed-use property in a growing downtown district.
Property Size4,950 SF
Price / SF$161.41
Days on Market159
Property Features for 205 E Houston St
General Information
Standard status
Active
Size
4,950 SF
Property subtype
Mixed Use, Office, Retail, Self Storage
Listing Agency:
Easy Life Realty
(903) 224-5171
Listed By:
Lisa Hitchcock · License #TX 0611932
Source:
Crexi
Added: Mar 10
Changed: Aug 14
Last Checked: Jul 21 at 3:50AM
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 Easy Life Realty
Investment Insights
Based on property information with market context.
Located one block from the iconic Sherman Square in Historic Downtown Sherman, this mixed-use property offers a blend of loft living and retail space. The upper-level loft features exposed brick walls and an open-concept layout, including two bedrooms and two full baths. A large private back patio provides space for entertaining, while an all-seasons room is suitable for a home office, yoga space, or studio. The street-level retail commercial space is situated in a pedestrian corridor surrounded by restaurants, boutiques, and coffee shops, near upcoming developments reshaping Downtown Sherman. The 4,950 square foot building is suitable for boutique retail, a coffee shop, gallery, salon, studio, design office, or long-term commercial tenant opportunities. This property is located in the county seat of booming Grayson County.
Key Highlights
- Prime location one block from Sherman Square in a rapidly developing pedestrian corridor.
- Mixed‑use property offering both residential loft living and income‑producing retail space.
- Authentic urban loft features:** exposed brick, open concept, two bedrooms, and two bathrooms.
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
1,235
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?
Mixed-use property - Mixed-use property in a growing downtown district.
Where is this mixed-use property located?
The property is located at 205 E Houston St 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: Prime location one block from Sherman Square in a rapidly developing pedestrian corridor.; Mixed‑use property offering both residential loft living and income‑producing retail space.; Authentic urban loft features:** exposed brick, open concept, two bedrooms, and two bathrooms.
