Historic Two-Story Mixed-Use
New
For Sale
$850,000
206 McKinney Street #204/206, Farmersville, TX 75442
Commercial zoning pairs a coffee house with flexible upper-level living or commercial space.
Property Size4,816 SF
Price / SF$193.18
Days on Market2
Property Features for 206 McKinney Street #204/206
General Information
Standard status
Active
Size
4,816 SF
Property subtype
Commercial
Zoning
Commercial
Building Details
Building Size
4,816 SF
Year Built
1895
Buildings
1
Stories
2
Units
2
Listing Agency:
Keller Williams Prosper Celina
(442) 888-2746
Listed By:
Jane Mercer · License #0796238
(442) 888-2746
Source:
Cuddrealtyinc
Added: Aug 9
Changed: Aug 10
Last Checked: Aug 10 at 9:31AM
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 4,400-square-foot mixed-use building offers two levels of commercial and flexible space in a historic downtown setting. Constructed in 1895, the property includes the Cup and Canter Coffee House on the first floor. The upper level can serve as living or commercial space and includes a kitchenette, two bedrooms, a large great room, two full baths, storage, and oversized windows.
Located at 206 McKinney Street in Farmersville, the building is positioned among locally owned shops, restaurants, and community events in Historic Downtown Farmersville. Commercial zoning supports the property’s mixed-use configuration, combining an established coffee-house setting with a separately arranged upper floor.
Located at 206 McKinney Street in Farmersville, the building is positioned among locally owned shops, restaurants, and community events in Historic Downtown Farmersville. Commercial zoning supports the property’s mixed-use configuration, combining an established coffee-house setting with a separately arranged upper floor.
Key Highlights
- 4,400‑square‑foot two‑story mixed‑use building constructed in 1895
- First floor contains the Cup and Canter Coffee House
- Upper level includes a kitchenette, two bedrooms, great room, and two full baths
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
$75,775
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
8.91%
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%
$1,515,500
$1.5M
Cap Rate 7%
$1,082,500
$1.1M
Cap Rate 9%
$841,944
$841.9K
Market Conditions
NOI Build-Up for 4,400 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
$106.1K $24.12/SF
− Vacancy
−$5.1K −$1.16/SF
EGI
$101.0K $22.96/SF
− OpEx
−$25.3K −$5.74/SF
NOI
$75.8K $17.22/SF
Area
Collin County, TX
Vacancy
4.80%
Lease Rate
$24.12 /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%
$1,515,500
Cap Rate 7%
$1,082,500
Cap Rate 9%
$841,944
Alternative Uses
Best Use
Specialty Retail
$1.08M
$947.2K – $1.26M
NOI $75,775 @ 7.0% cap · market cap 8.91%
Second Best
Retail
$1.01M
$885.0K – $1.18M
NOI $70,798 @ 7.0% cap · market cap 8.33%
Theoretical Best
Industrial
$4.37M
$3.83M – $5.10M
NOI $306,048 @ 7.0% cap · market cap 36.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
378
Businesses Nearby
20k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Exxon
Shops & Services
14,449 visits/mo
0.4 miles
Dollar General
Shops & Services
5,709 visits/mo
0.0 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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial zoning pairs a coffee house with flexible upper-level living or commercial space.
Where is this mixed-use property located?
The property is located at 206 McKinney Street #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: 4,400‑square‑foot two‑story mixed‑use building constructed in 1895; First floor contains the Cup and Canter Coffee House; Upper level includes a kitchenette, two bedrooms, great room, and two full baths
