High-Visibility Commercial Building For
For Sale
$999,000
220 S Palestine St, Athens, TX 75751
3,900 SF commercial building with high traffic and visibility.
Property Size3,900 SF
Lot Size0.71 Acres
Price / SF$256.15
Days on Market496
Property Features for 220 S Palestine St
General Information
Standard status
Active
Size
3,900 SF
Lot size
0.71 Acres
Taxes and HOA fees
Annual Taxes
$12,900
Listing Agency:
Steve Grant Realty, LLC
(903) 681-3530
Listed By:
Patricia Mcguffey
(903) 675-3503
Source:
Exprealty
Added: Apr 9, 2025
Changed: Aug 8
Last Checked: Aug 8 at 1:22PM
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 Steve Grant Realty, LLC
Investment Insights
Based on property information with market context.
This 3,900 SF commercial building offers high visibility and traffic, situated approximately 2.5 blocks from the courthouse square. The property, previously used by two restaurants, is zoned for retail use, making it suitable for various businesses. The north side provides 1,500 SF and is currently leased to Treehouse Cupcakes. The south side offers 2,400 SF of available space. The property includes concrete parking with drive-thru capability and sits on a 0.78-acre lot (30,840 SF) with 177 ft of frontage on S. Palestine. Traffic count is 10,552 daily. The location is across from a Schlotzsky's, a hardware store, and a furniture store. This property is suited for retail, dining, or service businesses.
Key Highlights
- High visibility location with strong daily traffic count (10,552 per TXDOT).
- Zoned for retail use, suitable for a wide range of businesses.
- 2,400 SF of available space, offering flexibility for various business needs.
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
$69,358
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
6.94%
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%
$1,387,160
$1.4M
Cap Rate 7%
$990,829
$990.8K
Cap Rate 9%
$770,644
$770.6K
Market Conditions
NOI Build-Up for 3,900 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
$97.3K $24.96/SF
− Vacancy
−$4.9K −$1.25/SF
EGI
$92.5K $23.71/SF
− OpEx
−$23.1K −$5.93/SF
NOI
$69.4K $17.78/SF
Area
Henderson County, TX
Vacancy
5.00%
Lease Rate
$24.96 /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%
$1,387,160
Cap Rate 7%
$990,829
Cap Rate 9%
$770,644
Alternative Uses
Best Use
Specialty Retail
$990.8K
$867.0K – $1.16M
NOI $69,358 @ 7.0% cap · market cap 6.94%
Second Best
Retail
$764.4K
$668.8K – $891.8K
NOI $53,506 @ 7.0% cap · market cap 5.36%
Theoretical Best
Office A
$1.37M
$1.20M – $1.60M
NOI $96,034 @ 7.0% cap · market cap 9.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
864
Businesses Nearby
75k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 51%
Dining 34%
Groceries 12%
Electronics 4%
Taco Bell
Dining
17,318 visits/mo
0.2 miles
Exxon
Shops & Services
12,106 visits/mo
0.2 miles
Piggly Wiggly
Groceries
8,693 visits/mo
0.4 miles
Family Dollar
Shops & Services
6,605 visits/mo
0.4 miles
Cinnabon
Dining
4,645 visits/mo
0.1 miles
Demographics for 75751, TX
17,100
Population
7,432
Households
2.3
Avg Household Size
39
Median Age
20%
College-Educated
85%
High-School Grad
180.4 sq mi
ZIP Area
95
Density / Sq Mi
$71,524
Median Household Income
$31,897
Median Earnings
$1,063
Median Rent
$205,200
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?
Retail property - 3,900 SF commercial building with high traffic and visibility.
Where is this retail property located?
The property is located at 220 S Palestine St Athens, TX.
What is the asking price?
The asking price for this property is $999,000.
What are key features of this property?
This property features: High visibility location with strong daily traffic count (10,552 per TXDOT).; Zoned for retail use, suitable for a wide range of businesses.; 2,400 SF of available space, offering flexibility for various business needs.
