NNN Retail Property with Highway
For Sale
Contact for pricing
2801 McKinney St, Melissa, TX 75454
Newly developed retail construction with a long-term lease and direct positioning along State Highway 5.
Property Size15,468 SF
Price / SF$355.57
Days on Market85
Property Features for 2801 McKinney St
General Information
Standard status
Active
Size
15,468 SF
Class
A
Property subtype
Retail
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$371,232
Site & Location
Traffic Count
40,000 vehicles/day
Road Access
Yes
Additional Details
Cap Rate
6.75%
Building Details
Year Built
2025
Tenancy
Single
Listing Agency:
Summit Real Estate
(469) 844-8884
Listed By:
Adam Gottschalk · License #TX 636961
Source:
Crexi
Added: Jun 8
Changed: Aug 31
Last Checked: Aug 31 at 3:03AM
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 Summit Real Estate
Investment Insights
Based on property information with market context.
This 15,468-square-foot retail property was completed in 2025 and features newly developed Class A construction. A 10-year lease is in place through October 2035, with 10% contractual rent increases every five years and two five-year renewal options. The lease is structured as NN, limiting landlord responsibilities.
The property is located at 2801 McKinney St in Melissa, directly off McKinney Street and along State Highway 5. Traffic counts exceed 40,000 vehicles per day, and the site sits within an established retail corridor near H-E-B, Kroger, Buc-ee’s, Walmart, Chick-fil-A, and Texas Roadhouse. Average household income within a three-mile radius exceeds $140,000, while Melissa’s population has grown approximately 14% annually since 2020.
The property is located at 2801 McKinney St in Melissa, directly off McKinney Street and along State Highway 5. Traffic counts exceed 40,000 vehicles per day, and the site sits within an established retail corridor near H-E-B, Kroger, Buc-ee’s, Walmart, Chick-fil-A, and Texas Roadhouse. Average household income within a three-mile radius exceeds $140,000, while Melissa’s population has grown approximately 14% annually since 2020.
Key Highlights
- 15,468‑square‑foot retail property completed in 2025
- 10‑year lease in place through October 2035
- 10% rent increases every five years
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
$248,887
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
4.53%
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%
$4,977,740
$5.0M
Cap Rate 7%
$3,555,529
$3.6M
Cap Rate 9%
$2,765,411
$2.8M
Market Conditions
NOI Build-Up for 15,468 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
$373.1K $24.12/SF
− Vacancy
−$17.5K −$1.13/SF
EGI
$355.6K $22.99/SF
− OpEx
−$106.7K −$6.90/SF
NOI
$248.9K $16.09/SF
Area
Collin County, TX
Vacancy
4.70%
Lease Rate
$24.12 /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%
$4,977,740
Cap Rate 7%
$3,555,529
Cap Rate 9%
$2,765,411
Alternative Uses
Best Use
Retail
$3.56M
$3.11M – $4.15M
NOI $248,887 @ 7.0% cap · market cap 4.53%
Second Best
—
—
no second resolved use
Theoretical Best
Industrial
$15.37M
$13.45M – $17.93M
NOI $1,075,897 @ 7.0% cap · market cap 19.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
40,000 VPD
Traffic count
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
321
Businesses Nearby
7k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 80%
Dining 20%
Dollar General
Shops & Services
5,644 visits/mo
0.5 miles
Scooter's Coffee
Dining
1,379 visits/mo
0.4 miles
Demographics for 75454, TX
16,252
Population
6,289
Households
2.6
Avg Household Size
33
Median Age
51%
College-Educated
95%
High-School Grad
21.4 sq mi
ZIP Area
759
Density / Sq Mi
$135,556
Median Household Income
$64,368
Median Earnings
$2,262
Median Rent
$421,700
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?
NNN property - Newly developed retail construction with a long-term lease and direct positioning along State Highway 5.
Where is this nnn property located?
The property is located at 2801 McKinney St Melissa, TX.
What is the asking price?
The asking price for this property is $5,500,000.
What are key features of this property?
This property features: 15,468‑square‑foot retail property completed in 2025; 10‑year lease in place through October 2035; 10% rent increases every five years
