Air-Conditioned Mixed-Use
For Sale
Contact for pricing
255 STATE HWY 173 N, Hondo, TX 78861
Flexible commercial building with event, kitchen, classroom, restroom, storage, and extensive paved parking improvements.
Property Size6,250 SF
Lot Size2.29 Acres
Price / SF$136
Days on Market13
Property Features for 255 STATE HWY 173 N
General Information
Standard status
Active
Size
6,250 SF
Lot size
2.29 Acres
Property subtype
Industrial, Mixed Use, Special Purpose
Amenities
fully air-conditioned
open event hall
commercial kitchen
dedicated classroom
multi-stall restrooms
large storage areas
Building Details
Year Built
2007
Units
1
Listing Agency:
01 Land Company
Listed By:
Jody Jacobs · License #641933
Source:
Crexi
Added: Aug 17
Changed: Aug 29
Last Checked: Aug 29 at 10:57AM
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 01 Land Company
Investment Insights
Based on property information with market context.
Built in 2007, this 6,250-square-foot mixed-use property occupies 2.29 acres and is fully air-conditioned. The building includes an approximately 4,000-square-foot open event hall, a commercial kitchen, a dedicated classroom, multi-stall restrooms, and substantial storage areas. More than 38,000 square feet of paved parking supports the improvements and event-oriented layout.
The property is located at 255 State Highway 173 N, just outside Hondo city limits. Its combination of gathering space, food-service infrastructure, instructional space, restrooms, storage, and extensive paved parking creates a versatile commercial configuration.
The property is located at 255 State Highway 173 N, just outside Hondo city limits. Its combination of gathering space, food-service infrastructure, instructional space, restrooms, storage, and extensive paved parking creates a versatile commercial configuration.
Key Highlights
- 6,250 SF fully air‑conditioned commercial building on 2.29 acres
- ~4,000 SF open event hall
- Commercial kitchen and dedicated classroom
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
$37,406
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
4.40%
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%
$748,120
$748.1K
Cap Rate 7%
$534,371
$534.4K
Cap Rate 9%
$415,622
$415.6K
Market Conditions
NOI Build-Up for 6,250 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
$56.3K $9.00/SF
− Vacancy
−$2.8K −$0.45/SF
EGI
$53.4K $8.55/SF
− OpEx
−$16.0K −$2.56/SF
NOI
$37.4K $5.98/SF
Area
Medina County, TX
Vacancy
5.00%
Lease Rate
$9.00 /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%
$748,120
Cap Rate 7%
$534,371
Cap Rate 9%
$415,622
Alternative Uses
Best Use
Specialty Retail
$1.28M
$1.12M – $1.49M
NOI $89,640 @ 7.0% cap · market cap 10.55%
Second Best
Mixed Use
$1.18M
$1.03M – $1.38M
NOI $82,500 @ 7.0% cap · market cap 9.71%
Theoretical Best
Office A
$1.59M
$1.39M – $1.86M
NOI $111,599 @ 7.0% cap · market cap 13.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
87
Businesses Nearby
34k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 68%
Dining 32%
Exxon
Shops & Services
23,344 visits/mo
0.3 miles
Taco Bell
Dining
6,089 visits/mo
0.5 miles
Burger King
Dining
4,866 visits/mo
0.3 miles
Demographics for 78861, TX
13,298
Population
5,163
Households
2.6
Avg Household Size
39
Median Age
17%
College-Educated
82%
High-School Grad
490.7 sq mi
ZIP Area
27
Density / Sq Mi
$64,491
Median Household Income
$39,711
Median Earnings
$1,131
Median Rent
$210,100
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?
Mixed-use property - Flexible commercial building with event, kitchen, classroom, restroom, storage, and extensive paved parking improvements.
Where is this mixed-use property located?
The property is located at 255 STATE HWY 173 N Hondo, 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: 6,250 SF fully air‑conditioned commercial building on 2.29 acres; ~4,000 SF open event hall; Commercial kitchen and dedicated classroom
