Single-Story Storefront
For Sale
$575,000
221-223 N Locust St, Denton, TX 76201
Single-story downtown storefront with two active local business leases.
Property Size2,900 SF
Price / SF$198.28
Days on Market15
Property Features for 221-223 N Locust St
General Information
Standard status
Active
Size
2,900 SF
Building Details
Year Built
1965
Listing Agency:
INC Realty, LLC
Listed By:
Melissa Cooper · License #0743420
(972) 351-1095
Source:
Aboveandbeyondrealty
Added: Sep 2
Changed: Sep 15
Last Checked: Sep 15 at 9:28PM
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 INC Realty, LLC
Investment Insights
Based on property information with market context.
This single-story storefront property contains approximately 2,900 square feet and was built in 1965. The building occupies a visible corner at N. Locust Street and W. McKinney Street, with storefront-facing frontage, on-street parking, and additional parking behind the building. Two local businesses currently occupy the space, producing 100% occupancy under leases that extend through approximately mid-2027.
The property is located one block from the Historic Denton Square in Downtown Denton. Its DC-G (Downtown Code – General) zoning supports a range of downtown-compatible commercial uses, including office, retail, studio, creative, and professional services, subject to City of Denton approval. The surrounding area includes restaurants, shops, entertainment venues, professional offices, and established downtown businesses, with nearby university populations and pedestrian activity.
The property is located one block from the Historic Denton Square in Downtown Denton. Its DC-G (Downtown Code – General) zoning supports a range of downtown-compatible commercial uses, including office, retail, studio, creative, and professional services, subject to City of Denton approval. The surrounding area includes restaurants, shops, entertainment venues, professional offices, and established downtown businesses, with nearby university populations and pedestrian activity.
Key Highlights
- Approximately 2,900 square feet on a corner at N. Locust Street and W. McKinney Street
- 100% occupied by two local business tenants
- Leases extend through approximately mid‑2027
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
$42,484
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
7.39%
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%
$849,680
$849.7K
Cap Rate 7%
$606,914
$606.9K
Cap Rate 9%
$472,044
$472.0K
Market Conditions
NOI Build-Up for 2,900 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
$63.7K $21.96/SF
− Vacancy
−$3.0K −$1.03/SF
EGI
$60.7K $20.93/SF
− OpEx
−$18.2K −$6.28/SF
NOI
$42.5K $14.65/SF
Area
Denton, TX
Vacancy
4.70%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
30.00%
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%
$849,680
Cap Rate 7%
$606,914
Cap Rate 9%
$472,044
Alternative Uses
Best Use
Retail
$606.9K
$531.1K – $708.1K
NOI $42,484 @ 7.0% cap · market cap 7.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$906.1K
$792.8K – $1.06M
NOI $63,424 @ 7.0% cap · market cap 11.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,235
Businesses Nearby
46k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 73%
Shops & Services 27%
Mellow Mushroom
Dining
11,092 visits/mo
0.2 miles
Rusty Taco
Dining
8,924 visits/mo
0.2 miles
Wells Fargo
Shops & Services
8,868 visits/mo
0.2 miles
Golden Chick
Dining
6,072 visits/mo
0.3 miles
Fuzzy's Taco Shop
Dining
4,312 visits/mo
0.3 miles
Demographics for 76201, TX
27,610
Population
13,087
Households
2.1
Avg Household Size
26
Median Age
46%
College-Educated
95%
High-School Grad
5.5 sq mi
ZIP Area
5,020
Density / Sq Mi
$37,863
Median Household Income
$18,308
Median Earnings
$1,128
Median Rent
$250,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Storefront property - Single-story downtown storefront with two active local business leases.
Where is this storefront property located?
The property is located at 221-223 N Locust St Denton, TX.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: Approximately 2,900 square feet on a corner at N. Locust Street and W. McKinney Street; 100% occupied by two local business tenants; Leases extend through approximately mid‑2027
