Wedding Venue with Guest
For Sale
$2,598,000
394 Ranch Rd 1376, Fredericksburg, TX 78624
Commercial Sale, Fredericksburg, TX
Property Size4,155 SF
Lot Size13.86 Acres
Price / SF$625.27
Days on Market208
Property Features for 394 Ranch Rd 1376
General Information
Property type
Commercial Sale
Property subtype
Other
Elementary school district
Fredericksburg
Middle school district
Fredericksburg
High school district
Fredericksburg
Standard status
Active
Lot size
13.86 Acres
Taxes and HOA fees
Tax Annual Amount
19715
Amenities
exposed beams
his & her bathrooms
floor-to-ceiling stone fireplace
catering prep area
large sliding doors
courtyard
Listing Agency:
Reata Ranch Realty, LLC
(830) 992-3045
Listed By:
Michele Smith · License #TX9002241
(325) 347-4702
Added: Feb 8
Changed: Sep 3
Last Checked: Sep 4 at 1:06AM
MLS# 101674
Copyright © 2026 Central Hill Country Board of Realtors. 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 wedding venue spans 13.86 acres and includes 4,155+/- sq ft of improvements. Two guest residences provide two bedroom suites each, while the event pavilion accommodates approximately 60 guests. Pavilion features include exposed beams, separate men’s and women’s bathrooms, a floor-to-ceiling stone fireplace, catering preparation space, and large sliding doors connecting to a courtyard. Locally sourced limestone, cedar, and reclaimed shiplap appear throughout the improvements. The property is being sold fully furnished with event inventory.
Located between Fredericksburg and Luckenbach in the Hill Country Wine Corridor, the property is near Hwy 290, wineries, and Hill Country attractions. Infrastructure includes a 60 gpm well and oversized septic systems. TxDOT has verbally provided the seller with pre-approval related to distance requirements for a potential commercial entrance, subject to the stated condition that a future owner pursue one.
Located between Fredericksburg and Luckenbach in the Hill Country Wine Corridor, the property is near Hwy 290, wineries, and Hill Country attractions. Infrastructure includes a 60 gpm well and oversized septic systems. TxDOT has verbally provided the seller with pre-approval related to distance requirements for a potential commercial entrance, subject to the stated condition that a future owner pursue one.
Key Highlights
- 13.86‑acre wedding venue property with 4,155+/- sq ft of improvements
- Two guest residences, each with 2 bedroom suites
- Pavilion accommodates approximately 60 guests and includes catering prep space
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
$220,257
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
8.48%
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%
$4,405,140
$4.4M
Cap Rate 7%
$3,146,529
$3.1M
Cap Rate 9%
$2,447,300
$2.4M
Market Conditions
NOI Build-Up for 4,155 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
$498.6K $120.00/SF
− Vacancy
−$34.9K −$8.40/SF
EGI
$463.7K $111.60/SF
− OpEx
−$243.4K −$58.59/SF
NOI
$220.3K $53.01/SF
Area
Gillespie County, TX
Vacancy
7.00%
Lease Rate
$120.00 /SF/Yr
Expense Ratio
52.50%
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%
$4,405,140
Cap Rate 7%
$3,146,529
Cap Rate 9%
$2,447,300
Alternative Uses
Best Use
Hotel Hospitality
$3.15M
$2.75M – $3.67M
NOI $220,257 @ 7.0% cap · market cap 8.48%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
27
Businesses Nearby
Explore this area
Business Placement
Demographics for 78624, TX
23,080
Population
12,421
Households
1.9
Avg Household Size
52
Median Age
37%
College-Educated
89%
High-School Grad
742.3 sq mi
ZIP Area
31
Density / Sq Mi
$67,987
Median Household Income
$37,047
Median Earnings
$1,347
Median Rent
$439,600
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Wedding venue - Furnished event property with guest accommodations, a pavilion, and distinctive limestone and cedar finishes.
Where is this wedding venue located?
The property is located at 394 Ranch Rd 1376 Fredericksburg, TX.
What is the asking price?
The asking price for this property is $2,598,000.
What are key features of this property?
This property features: 13.86‑acre wedding venue property with 4,155+/- sq ft of improvements; Two guest residences, each with 2 bedroom suites; Pavilion accommodates approximately 60 guests and includes catering prep space
