Historic Gristmill in Growing
For Sale
$545,000
331 Old Mill Road, Rhome, TX 76078
Commercial opportunity in Rhome's exploding growth area near major developments.
Property Size4,015 SF
Price / SF$135.74
Days on Market158
Property Features for 331 Old Mill Road
General Information
Standard status
Active
Size
4,015 SF
Property subtype
CommercialSale
Listing Agency:
Keller Williams Heritage West
(817) 441-4000
Listed By:
Kate Hogan · License #0668947
Source:
Prodeorealty
Added: Mar 26
Changed: Aug 30
Last Checked: Aug 26 at 10:03AM
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 Keller Williams Heritage West
Investment Insights
Based on property information with market context.
This property features Texas's first Gristmill, dating back to the 1800s, and is approved for Commercial Light Industrial use. Half of the Gristmill was previously used as a contemporary residence. The industrial building offers ample space suitable for manufacturing, storage, or distribution. Potential uses include a mercantile with two main level bathrooms and a front reception area. One side could function as a coffee shop with live music, while the upstairs area could serve as flex space for events or offices. The entire property could be transformed into a venue, with the possibility of clearing the back area to create additional parking or a stage. The property is located approximately two miles from Rolling V Ranch, a 3600-acre master plan of 10,000 homes, near Highway 114 and Highway 287. It presents an incredible development opportunity in a prime location, with many commercial and industrial businesses moving to the area. The property is located 29 miles from DFW and 26 miles from Downtown Fort Worth.
Key Highlights
- Prime commercial location near Hwy 114 and Hwy 287 in an exploding growth area.
- Approved for Commercial Light Industrial use.
- Located approximately two miles from Rolling V Ranch, a 3600‑acre master‑planned community with 10,000 homes.
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
$40,652
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
7.46%
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%
$813,040
$813.0K
Cap Rate 7%
$580,743
$580.7K
Cap Rate 9%
$451,689
$451.7K
Market Conditions
NOI Build-Up for 4,015 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
$72.3K $18.00/SF
− Vacancy
−$7.2K −$1.80/SF
EGI
$65.0K $16.20/SF
− OpEx
−$24.4K −$6.07/SF
NOI
$40.7K $10.13/SF
Area
Wise County, TX
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$813,040
Cap Rate 7%
$580,743
Cap Rate 9%
$451,689
Alternative Uses
Best Use
Mixed Use
$580.7K
$508.2K – $677.5K
NOI $40,652 @ 7.0% cap · market cap 7.46%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$3.02M
$2.65M – $3.53M
NOI $211,691 @ 7.0% cap · market cap 38.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
163
Businesses Nearby
Explore this area
Business Placement
Demographics for 76078, TX
9,979
Population
3,540
Households
2.8
Avg Household Size
37
Median Age
21%
College-Educated
87%
High-School Grad
64.2 sq mi
ZIP Area
155
Density / Sq Mi
$94,379
Median Household Income
$42,853
Median Earnings
$1,574
Median Rent
$278,800
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial opportunity in Rhome's exploding growth area near major developments.
Where is this mixed-use property located?
The property is located at 331 Old Mill Road Rhome, TX.
What is the asking price?
The asking price for this property is $545,000.
What are key features of this property?
This property features: Prime commercial location near Hwy 114 and Hwy 287 in an exploding growth area.; Approved for Commercial Light Industrial use.; Located approximately two miles from Rolling V Ranch, a 3600‑acre master‑planned community with 10,000 homes.
