Driftwood Dance Hall with
For Sale
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23490 Ranch Rd 12, Driftwood, TX 78619
Dance hall with five cabins on 4.18 acres.
Property Size7,100 SF
Lot Size4.18 Acres
Price / SF$280.99
Days on Market931
Property Features for 23490 Ranch Rd 12
General Information
Standard status
Active
Size
7,100 SF
Lot size
4.18 Acres
Property subtype
Retail
Investment Type
Owner/User
Building Details
Buildings
6
Listing Agency:
Deal Vision
(512) 762-7569
Listed By:
Nick Nelson · License #603416
Source:
Crexi
Added: Feb 3, 2024
Changed: Aug 8
Last Checked: Aug 20 at 11:45AM
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 Deal Vision
Investment Insights
Based on property information with market context.
The Mercer Dance Hall property is located in Driftwood, Texas, and occupies 4.18 acres. The site features a 5,000-square-foot dance hall and five Airbnb cabins, each measuring 420 square feet. The dance hall is constructed on a 5,000-square-foot, 8-inch concrete slab, supported by 40 piers extending 20 feet deep. The property is serviced by a well and septic system. The five rental cabins are situated at the rear of the lot. There is no zoning.
Key Highlights
- Established income potential with 5 fully operational Airbnb cabins.
- Large 5,000 SF dancehall suitable for events and gatherings.
- Significant land parcel of 4.18 acres offering space and privacy.
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
$125,019
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
6.27%
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%
$2,500,380
$2.5M
Cap Rate 7%
$1,785,986
$1.8M
Cap Rate 9%
$1,389,100
$1.4M
Market Conditions
NOI Build-Up for 7,100 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
$184.9K $26.04/SF
− Vacancy
−$6.3K −$0.89/SF
EGI
$178.6K $25.15/SF
− OpEx
−$53.6K −$7.55/SF
NOI
$125.0K $17.61/SF
Area
Hays County, TX
Vacancy
3.40%
Lease Rate
$26.04 /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%
$2,500,380
Cap Rate 7%
$1,785,986
Cap Rate 9%
$1,389,100
Alternative Uses
Best Use
Retail
$1.79M
$1.56M – $2.08M
NOI $125,019 @ 7.0% cap · market cap 6.27%
Second Best
Hotel Hospitality
$915.8K
$801.3K – $1.07M
NOI $64,104 @ 7.0% cap · market cap 3.21%
Theoretical Best
Office A
$2.97M
$2.60M – $3.46M
NOI $207,758 @ 7.0% cap · market cap 10.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
15
Businesses Nearby
Explore this area
Business Placement
Demographics for 78619, TX
5,819
Population
2,484
Households
2.3
Avg Household Size
44
Median Age
55%
College-Educated
99%
High-School Grad
39.9 sq mi
ZIP Area
146
Density / Sq Mi
$171,667
Median Household Income
$69,688
Median Earnings
$1,245
Median Rent
$709,400
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?
Retail space - Dance hall with five cabins on 4.18 acres.
Where is this retail space located?
The property is located at 23490 Ranch Rd 12 Driftwood, TX.
What is the asking price?
The asking price for this property is $1,995,000.
What are key features of this property?
This property features: Established income potential with 5 fully operational Airbnb cabins.; Large 5,000 SF dancehall suitable for events and gatherings.; Significant land parcel of 4.18 acres offering space and privacy.
