Commercial Land with
New
For Sale
$3,500,000
28631 FM 2978, Magnolia, TX 77354
COMMERCIAL - Magnolia, TX
Property Size7,973 SF
Lot Size11.29 Acres
Price / SF$438.98
Days on Market2
Property Features for 28631 FM 2978
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
From Magnolia post office, head west towards Goodson Rd. In 100 ft turn right towards Rd. In 100 ft. turn right on Goodson Rd. In 0.1 miles turn left onto 6th St. In 0.1 miles turn right onto FM 1744/Magnolia Blvd. In 6.6 miles keep right to stay on TX. -249 S. In 1.5 miles turn left onto Hardin store Rd. In 4.4 miles turn right onto FM 2978. In 500 Ft. you arrive at 28631 FM 2978
Standard status
Active
APN
28631 FM 2978 900
Size
7,973 SF
Lot size
11.29 Acres
Building Details
Year built
1995
Listing Agency:
Keller Williams Realty Brazos Valley office
(979) 693-9100
Listed By:
Karryn Nichols · License #0711839
(979) 219-0541
Added: Aug 10
Last Checked: Aug 11 at 8:06PM
MLS# 26010046
Copyright © 2026 Bryan-College Station Regional MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This unrestricted commercial land tract includes four existing businesses and a home, along with two water wells and commercial septic infrastructure. The property size is listed as 7,973 square feet, and the improvements date to 1995.
The tract provides 414 feet of frontage along FM 2978 near Hardin Store Road in Magnolia, Texas. Its position near the intersection places the property within an area identified for new development. The source information indicates potential for a range of commercial uses, including shopping center, office, restaurant, and gas station applications.
The tract provides 414 feet of frontage along FM 2978 near Hardin Store Road in Magnolia, Texas. Its position near the intersection places the property within an area identified for new development. The source information indicates potential for a range of commercial uses, including shopping center, office, restaurant, and gas station applications.
Key Highlights
- 11.2895 AC tract with 414 ft of frontage on FM 2978
- Two water wells and commercial septic infrastructure
- Four businesses and a home are located on the property
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
$140,896
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
4.03%
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%
$2,817,920
$2.8M
Cap Rate 7%
$2,012,800
$2.0M
Cap Rate 9%
$1,565,511
$1.6M
Market Conditions
NOI Build-Up for 7,973 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
$199.0K $24.96/SF
− Vacancy
−$11.1K −$1.40/SF
EGI
$187.9K $23.56/SF
− OpEx
−$47.0K −$5.89/SF
NOI
$140.9K $17.67/SF
Area
Montgomery County, TX
Vacancy
5.60%
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%
$2,817,920
Cap Rate 7%
$2,012,800
Cap Rate 9%
$1,565,511
Alternative Uses
Best Use
Specialty Retail
$2.01M
$1.76M – $2.35M
NOI $140,896 @ 7.0% cap · market cap 4.03%
Second Best
Retail
$1.54M
$1.35M – $1.80M
NOI $108,111 @ 7.0% cap · market cap 3.09%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
143
Businesses Nearby
697
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Storage King USA
Shops & Services
697 visits/mo
0.2 miles
Demographics for 77354, TX
40,625
Population
15,747
Households
2.6
Avg Household Size
38
Median Age
42%
College-Educated
93%
High-School Grad
74.2 sq mi
ZIP Area
548
Density / Sq Mi
$112,093
Median Household Income
$58,832
Median Earnings
$1,850
Median Rent
$379,700
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?
Commercial land - Unrestricted commercial tract with existing businesses, a residence, water wells, and commercial septic infrastructure.
Where is this commercial land located?
The property is located at 28631 FM 2978 Magnolia, TX.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 11.2895 AC tract with 414 ft of frontage on FM 2978; Two water wells and commercial septic infrastructure; Four businesses and a home are located on the property
