Retail Storefront with Lease-Up
For Sale
Contact for pricing
3398 N 1st St, Abilene, TX 79603
Updated retail property on a major Abilene corridor, featuring current income and additional space for lease-up.
Property Size17,570 SF
Price / SF$115.30
Days on Market60
Property Features for 3398 N 1st St
General Information
Standard status
Active
Size
17,570 SF
Class
C
Property subtype
Retail
Occupancy
69%
Lease Type
NNN
Investment Type
Value Add
Net Operating Income
$151,943
Building Details
Year Built
1960
Year Renovated
2023
Units
6
Tenancy
Multi
Listing Agency:
SVN | Trinity Advisors
(817) 288-5524
Listed By:
Eliud Sangabriel, CCIM · License #TX 0589027
Source:
Crexi
Added: Jul 1
Changed: Aug 21
Last Checked: Aug 28 at 10:23PM
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 SVN | Trinity Advisors
Investment Insights
Based on property information with market context.
3398 N 1st St is a retail storefront property presented as a value-add acquisition with an existing income-producing component and approximately 3,588 SF of remaining lease-up opportunity. The exterior and site have been updated with a modernized Class A-style façade, upgraded parking areas, LED lighting enhancements, and additional exterior and site improvements intended to improve tenant experience and long-term positioning.
The property is located along a heavily traveled commercial corridor with direct access to Interstate 20 and major regional thoroughfares, supporting strong visibility to both local residents and interstate travelers. The surrounding area includes established retail activity and proximity to major employment and institutional drivers, including Hendrick Medical Center, Abilene High School, Texas Tech Health Sciences Center, Abilene Christian University, and Dyess AFB commuter traffic.
For tenants, the mix of existing income space plus remaining lease-up area can accommodate retail users seeking a corridor location with frequent drive-by traffic. For buyers and investors, the offering includes an incoming restaurant tenant that is currently completing interior improvements and is anticipated to open within the next five to six months. Ownership also notes projected stabilization assumptions, including an estimated approximately 9.8% pro forma cap rate upon lease-up of the remaining vacancy.
The property is located along a heavily traveled commercial corridor with direct access to Interstate 20 and major regional thoroughfares, supporting strong visibility to both local residents and interstate travelers. The surrounding area includes established retail activity and proximity to major employment and institutional drivers, including Hendrick Medical Center, Abilene High School, Texas Tech Health Sciences Center, Abilene Christian University, and Dyess AFB commuter traffic.
For tenants, the mix of existing income space plus remaining lease-up area can accommodate retail users seeking a corridor location with frequent drive-by traffic. For buyers and investors, the offering includes an incoming restaurant tenant that is currently completing interior improvements and is anticipated to open within the next five to six months. Ownership also notes projected stabilization assumptions, including an estimated approximately 9.8% pro forma cap rate upon lease-up of the remaining vacancy.
Key Highlights
- Updated retail investment at 3398 N 1st St in North Abilene, built in 1960.
- Includes existing income‑producing space plus approximately 3,588 SF of lease‑up opportunity.
- Pro forma cap rate projected at approximately 9.8% upon lease‑up of remaining vacancy (based on projected stabilization assumptions).
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
$149,359
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
7.37%
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%
$2,987,180
$3.0M
Cap Rate 7%
$2,133,700
$2.1M
Cap Rate 9%
$1,659,544
$1.7M
Market Conditions
NOI Build-Up for 17,570 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
$231.9K $13.20/SF
− Vacancy
−$18.6K −$1.06/SF
EGI
$213.4K $12.14/SF
− OpEx
−$64.0K −$3.64/SF
NOI
$149.4K $8.50/SF
Area
Abilene, TX
Vacancy
8.00%
Lease Rate
$13.20 /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%
$2,987,180
Cap Rate 7%
$2,133,700
Cap Rate 9%
$1,659,544
Alternative Uses
Best Use
Retail
$2.13M
$1.87M – $2.49M
NOI $149,359 @ 7.0% cap · market cap 7.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.92M
$3.43M – $4.58M
NOI $274,598 @ 7.0% cap · market cap 13.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
884
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79603, TX
23,746
Population
9,960
Households
2.4
Avg Household Size
35
Median Age
17%
College-Educated
83%
High-School Grad
59.2 sq mi
ZIP Area
401
Density / Sq Mi
$53,579
Median Household Income
$32,339
Median Earnings
$1,022
Median Rent
$114,000
Median Home Value
Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Shopping center - Updated retail property on a major Abilene corridor, featuring current income and additional space for lease-up.
Where is this shopping center located?
The property is located at 3398 N 1st St Abilene, TX.
What is the asking price?
The asking price for this property is $2,025,907.
What are key features of this property?
This property features: Updated retail investment at 3398 N 1st St in North Abilene, built in 1960.; Includes existing income‑producing space plus approximately 3,588 SF of lease‑up opportunity.; Pro forma cap rate projected at approximately 9.8% upon lease‑up of remaining vacancy (based on projected stabilization assumptions).
