Princeton Commercial Property on
For Sale
$550,000
213 Mckinney Ave, Princeton, TX 75407
Versatile 1,800 SF commercial space in prime downtown location.
Property Size1,800 SF
Lot Size0.50 Acres
Price / SF$305.56
Days on Market134
Property Features for 213 Mckinney Ave
General Information
Standard status
Active
Size
1,800 SF
Lot size
0.50 Acres
Taxes and HOA fees
Annual Taxes
$4,138
Listing Agency:
Coldwell Banker Apex, REALTORS
(972) 727-3377
Listed By:
Angela Harwell · License #681213
(972) 727-3377
Source:
Exprealty
Added: Apr 12
Changed: Aug 23
Last Checked: Aug 23 at 3:24AM
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 Coldwell Banker Apex, REALTORS
Investment Insights
Based on property information with market context.
This commercial property, situated on nearly half an acre, offers approximately 1,800 square feet of functional space. The interior has been completely rebuilt, including the foundation, framing, walls, electrical, plumbing, and bathrooms. The property features multiple entry points and on-site parking. Located on a prime downtown corner at McKinney Avenue and N Third St, it provides strong visibility and accessibility. The property is outfitted for spa or salon use, featuring a kitchen, two restrooms, a tankless gas water heater, washer and dryer connections, shampoo bowl hookups, a partial shower, a waiting area, and ample storage. It has been fully transitioned to commercial use with permits in place. This property is suitable for retail, office, short-term rental, or redevelopment opportunities. It is ideal for an owner-operator or tenant.
Key Highlights
- Prime downtown corner location at McKinney Avenue & N Third St. offering strong visibility and accessibility
- Completely rebuilt interior offering a 'like‑new' asset
- Fully transitioned to commercial use with permits in place
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
$22,827
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
4.15%
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%
$456,540
$456.5K
Cap Rate 7%
$326,100
$326.1K
Cap Rate 9%
$253,633
$253.6K
Market Conditions
NOI Build-Up for 1,800 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
$39.5K $21.96/SF
− Vacancy
−$9.1K −$5.05/SF
EGI
$30.4K $16.91/SF
− OpEx
−$7.6K −$4.23/SF
NOI
$22.8K $12.68/SF
Area
Collin County, TX
Vacancy
23.00%
Lease Rate
$21.96 /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%
$456,540
Cap Rate 7%
$326,100
Cap Rate 9%
$253,633
Alternative Uses
Best Use
Office B
$326.1K
$285.3K – $380.5K
NOI $22,827 @ 7.0% cap · market cap 4.15%
Second Best
—
—
no second resolved use
Theoretical Best
Industrial
$1.79M
$1.57M – $2.09M
NOI $125,201 @ 7.0% cap · market cap 22.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
451
Businesses Nearby
Explore this area
Business Placement
Demographics for 75407, TX
25,738
Population
10,095
Households
2.5
Avg Household Size
32
Median Age
25%
College-Educated
89%
High-School Grad
49.9 sq mi
ZIP Area
516
Density / Sq Mi
$92,076
Median Household Income
$48,912
Median Earnings
$1,867
Median Rent
$307,500
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?
Office units - Versatile 1,800 SF commercial space in prime downtown location.
Where is this office units located?
The property is located at 213 Mckinney Ave Princeton, TX.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Prime downtown corner location at McKinney Avenue & N Third St. offering strong visibility and accessibility; Completely rebuilt interior offering a 'like‑new' asset; Fully transitioned to commercial use with permits in place
