Building Details

Year Built 2023

Buildings 1

Tenancy Multi

Listing Agency: Summit Real Estate

Listed By: Hudson Lambert · License #TX 724882

Source: Crexi

Added: Jul 8 Changed: Aug 16 Last Checked: Aug 28 at 10:19PM

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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.

Starbucks Shops, also known as Prestonwood Polo Crossing, is a Class A retail shopping center built in 2023 at 2960 FM 720 in Oak Point, Texas. The 10,877 SF center includes a five-tenant lineup anchored by a drive-thru end cap, and it is operated under long-term NNN leases with 100% occupancy.

The property benefits from prime frontage on FM 720 with multiple ingress and egress points, and it is described as visible to over 34,000 vehicles per day. The center is positioned adjacent to a future national grocery chain and near 7-Eleven and McDonald’s.

For buyers, the offering includes interest-only assumable financing at 6.012%, subject to approval. The seller also states that 100% of the GLA includes a 10% rental increase within a 3-year hold.

Key Highlights

• Class A 2023 retail shopping center at 2960 FM 720 in Oak Point, TX
• 10,877 SF shopping center with a five‑tenant lineup and drive‑thru end cap
• 100% occupied with long‑term NNN leases

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

$180,541

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

2.82%

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%

$3,610,820 $3.6M

Cap Rate 7%

$2,579,157 $2.6M

Cap Rate 9%

$2,006,011 $2.0M

Market Conditions

NOI Build-Up for 10,877 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

$271.5K $24.96/SF

− Vacancy

−$13.6K −$1.25/SF

EGI

$257.9K $23.71/SF

− OpEx

−$77.4K −$7.11/SF

NOI

$180.5K $16.60/SF

Area

Denton County, TX

Vacancy

5.00%

Lease Rate

$24.96 /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%

$3,610,820

Cap Rate 7%

$2,579,157

Cap Rate 9%

$2,006,011

Alternative Uses

Best Use

Retail

$2.58M

$2.26M – $3.01M (±1% cap)

NOI $180,541 @ 7.0% cap · market cap 2.82%

Second Best

—

—

no second resolved use

Theoretical Best

Multifamily LT 5

$152.11M

$133.10M – $177.46M (±1% cap)

NOI $10,647,601 @ 7.0% cap · market cap 166.37%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Shopping centers

Suggested Use

Top Pick Real Estate Agency Dental Office Auto Parts Store Big Box & Wholesale Store Restaurant Pharmacy

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

34,000 VPD

Traffic count

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

49

Businesses Nearby

22k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Dining 100%

McDonald's Dining

15,039 visits/mo 0.5 miles

Starbucks Dining

7,410 visits/mo 0.5 miles

Demographics for 75068, TX

66,248

Population

23,499

Households

2.8

Avg Household Size

34

Median Age

43%

College-Educated

92%

High-School Grad

27.9 sq mi

ZIP Area

2,374

Density / Sq Mi

$126,341

Median Household Income

$66,559

Median Earnings

$2,161

Median Rent

$386,300

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

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Frequently Asked Questions

What type of property is this?

Shopping center - Class A 2023 retail center with a drive-thru end cap and long-term NNN leases, 100% occupied.

Where is this shopping center located?

The property is located at 2960 FM 720 Oak Point, TX.

What is the asking price?

The asking price for this property is $6,400,000.

What are key features of this property?

This property features: Class A 2023 retail shopping center at 2960 FM 720 in Oak Point, TX; 10,877 SF shopping center with a five‑tenant lineup and drive‑thru end cap; 100% occupied with long‑term NNN leases