Controlled-Environment Industrial
For Sale
$4,200,000
308 S Chandler Ave, Denison, TX 75020
Purpose-built HEPA-filtered production with dock access, heavy power, and on-site apartments for controlled-environment operators.
Property Size33,800 SF
Lot Size0.66 Acres
Price / SF$124.26
Days on Market58
Property Features for 308 S Chandler Ave
General Information
Standard status
Active
Size
33,800 SF
Lot size
0.66 Acres
Zoning
LI
Warehouse & Industrial
Dock-High Doors
2
Heavy Power
Yes
Additional Details
Business Included
Yes
Multifamily Units
2
Listing Agency:
St. Croix Capital Realty Advisors
(512) 844-4653
Listed By:
Gayle Berkbigler, CCIM · License #451428
(512) 844-4653
Source:
Expcommercial
Added: Jun 19
Changed: Aug 14
Last Checked: Aug 14 at 3:27AM
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 St. Croix Capital Realty Advisors
Investment Insights
Based on property information with market context.
This purpose-built controlled-environment production facility is engineered for indoor agriculture and includes HEPA-filtered, air-conditioned lab and processing areas supporting production and processing workflows. The building also offers fully HVAC’d 3,500 SF dry storage and insulated panel ceiling and walls designed to maintain peak summer temperatures up to 79°F. Steel I-beam reinforced ceilings and a dual boiler room with both gas and electric service support the site’s environmental infrastructure. Cooling is provided by 110 tons of refrigeration and cooling capacity throughout, along with a 3,600 SF concrete flat roof engineered to support greenhouse or additional structure.
The property includes two dock-high doors, two metal overhead doors, and five metal exterior doors for logistics flexibility. Electrical infrastructure is substantial, with five power transformers and service capability across single phase 120-240V, three-phase 120-208V, and three-phase 480V systems. The undeveloped 10,000+ SF second floor adds expansion opportunity for additional production, vertical farming, or an office conversion. A locked-in Texas energy contract at $0.069/kWh through April 2030 is included.
In addition to the production facility, there are two on-site apartments (2,600 SF each) on the second floor, for a total of four bedrooms and three bathrooms, with reconfigurable space that can support 3-4 units. The 800 SF main floor space includes plumbing and a high ceiling and is described as having studio conversion potential. The business is listed as available, and a lease can be in place if purchased as an investor.
The property includes two dock-high doors, two metal overhead doors, and five metal exterior doors for logistics flexibility. Electrical infrastructure is substantial, with five power transformers and service capability across single phase 120-240V, three-phase 120-208V, and three-phase 480V systems. The undeveloped 10,000+ SF second floor adds expansion opportunity for additional production, vertical farming, or an office conversion. A locked-in Texas energy contract at $0.069/kWh through April 2030 is included.
In addition to the production facility, there are two on-site apartments (2,600 SF each) on the second floor, for a total of four bedrooms and three bathrooms, with reconfigurable space that can support 3-4 units. The 800 SF main floor space includes plumbing and a high ceiling and is described as having studio conversion potential. The business is listed as available, and a lease can be in place if purchased as an investor.
Key Highlights
- 33,800 SF HEPA‑filtered, air‑conditioned production facility with HVAC throughout and air‑conditioned lab/processing areas
- Heavy power with 5 power transformers offering single‑phase 120‑240V, 3‑phase 120‑208V, and 3‑phase 480V service
- Climate‑control infrastructure includes 110 tons of refrigeration/cooling capacity, dual boiler room (gas and electric), and insulated panel walls/ceiling
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
$259,100
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
6.17%
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%
$5,182,000
$5.2M
Cap Rate 7%
$3,701,429
$3.7M
Cap Rate 9%
$2,878,889
$2.9M
Market Conditions
NOI Build-Up for 33,800 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
$417.8K $12.36/SF
− Vacancy
−$47.6K −$1.41/SF
EGI
$370.1K $10.95/SF
− OpEx
−$111.0K −$3.29/SF
NOI
$259.1K $7.67/SF
Area
Grayson County, TX
Vacancy
11.40%
Lease Rate
$12.36 /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%
$5,182,000
Cap Rate 7%
$3,701,429
Cap Rate 9%
$2,878,889
Alternative Uses
Best Use
Multifamily LT 5
$3.70M
$3.24M – $4.32M
NOI $259,100 @ 7.0% cap · market cap 6.17%
Second Best
Apartment 5plus
$3.28M
$2.87M – $3.83M
NOI $229,683 @ 7.0% cap · market cap 5.47%
Theoretical Best
Hotel Hospitality
$17.34M
$15.17M – $20.23M
NOI $1,213,758 @ 7.0% cap · market cap 28.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Dock-high doors
2
Residential units
Turnkey business
Opportunity
Yes
Heavy power
Location Intelligence
Trade Area within ½ mile
398
Businesses Nearby
Explore this area
Business Placement
Demographics for 75020, TX
23,782
Population
10,802
Households
2.2
Avg Household Size
42
Median Age
19%
College-Educated
90%
High-School Grad
61.0 sq mi
ZIP Area
390
Density / Sq Mi
$66,308
Median Household Income
$38,656
Median Earnings
$1,136
Median Rent
$187,200
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Purpose-built HEPA-filtered production with dock access, heavy power, and on-site apartments for controlled-environment operators.
Where is this manufacturing property located?
The property is located at 308 S Chandler Ave Denison, TX.
What is the asking price?
The asking price for this property is $4,200,000.
What are key features of this property?
This property features: 33,800 SF HEPA‑filtered, air‑conditioned production facility with HVAC throughout and air‑conditioned lab/processing areas; Heavy power with 5 power transformers offering single‑phase 120‑240V, 3‑phase 120‑208V, and 3‑phase 480V service; Climate‑control infrastructure includes 110 tons of refrigeration/cooling capacity, dual boiler room (gas and electric), and insulated panel walls/ceiling
