Historic Two-Story Mixed-Use
For Sale
$850,000
206 Mckinney Street #204/206 204/206, Farmersville, TX 75442
Built in 1895, the property combines an operating coffee house with adaptable upper-level space in downtown Farmersville.
Property Size4,816 SF
Price / SF$176.50
Days on Market36
Property Features for 206 Mckinney Street #204/206 204/206
General Information
Standard status
Active
Size
4,816 SF
Additional Details
Road Access
Yes
Building Details
Year Built
1895
Buildings
1
Stories
2
Listing Agency:
Keller Williams Prosper Celina
(972) 382-8882
Listed By:
Jane Mercer · License #0796238
Source:
Suekrider
Added: Jul 25
Changed: Aug 29
Last Checked: Aug 29 at 10:51AM
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 Keller Williams Prosper Celina
Investment Insights
Based on property information with market context.
This 4,816-square-foot mixed-use building dates to 1895 and extends across two stories at 206 McKinney Street in Farmersville. The ground floor is occupied by Cup and Canter Coffee House. Above, the property includes a flexible living or commercial area with a kitchenette, two bedrooms, a large great room, two full bathrooms, substantial storage, and oversized windows facing the downtown streetscape.
The building is positioned in Historic Downtown Farmersville among locally owned shops and restaurants, with community events held throughout the year. Its configuration brings together an established coffee-house use and a separately described upper level that can support residential or commercial occupancy, subject to verification.
The building is positioned in Historic Downtown Farmersville among locally owned shops and restaurants, with community events held throughout the year. Its configuration brings together an established coffee-house use and a separately described upper level that can support residential or commercial occupancy, subject to verification.
Key Highlights
- 4,816‑square‑foot mixed‑use building at 206 McKinney Street
- Constructed in 1895 with two‑story configuration
- Ground floor occupied by Cup and Canter Coffee House
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
$66,461
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
7.82%
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%
$1,329,220
$1.3M
Cap Rate 7%
$949,443
$949.4K
Cap Rate 9%
$738,456
$738.5K
Market Conditions
NOI Build-Up for 4,816 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
$115.6K $24.00/SF
− Vacancy
−$9.2K −$1.92/SF
EGI
$106.3K $22.08/SF
− OpEx
−$39.9K −$8.28/SF
NOI
$66.5K $13.80/SF
Area
Collin County, TX
Vacancy
8.00%
Lease Rate
$24.00 /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%
$1,329,220
Cap Rate 7%
$949,443
Cap Rate 9%
$738,456
Alternative Uses
Best Use
Specialty Retail
$1.18M
$1.04M – $1.38M
NOI $82,940 @ 7.0% cap · market cap 9.76%
Second Best
Mixed Use
$949.4K
$830.8K – $1.11M
NOI $66,461 @ 7.0% cap · market cap 7.82%
Theoretical Best
Industrial
$4.79M
$4.19M – $5.58M
NOI $334,983 @ 7.0% cap · market cap 39.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
106
Businesses Nearby
5k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Family Dollar
Shops & Services
5,128 visits/mo
0.2 miles
Demographics for 75442, TX
11,241
Population
4,060
Households
2.8
Avg Household Size
39
Median Age
18%
College-Educated
85%
High-School Grad
107.6 sq mi
ZIP Area
104
Density / Sq Mi
$84,591
Median Household Income
$48,482
Median Earnings
$1,501
Median Rent
$330,000
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?
Mixed-use property - Built in 1895, the property combines an operating coffee house with adaptable upper-level space in downtown Farmersville.
Where is this mixed-use property located?
The property is located at 206 Mckinney Street #204/206 204/206 Farmersville, TX.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 4,816‑square‑foot mixed‑use building at 206 McKinney Street; Constructed in 1895 with two‑story configuration; Ground floor occupied by Cup and Canter Coffee House
