Historic Inn and Event
For Sale
$749,000
4 Depot ST, Elgin, TX 78621
Built in 1897, this inn accommodates up to 16 guests overnight and hosts events for up to 50.
Property Size3,300 SF
Days on Market79
Property Features for 4 Depot ST
General Information
Standard status
Active
Size
3,300 SF
Property subtype
Business
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$12,340
Building Details
Building Size
3,300 SF
Year Built
1897
Listing Agency:
Jeremy Kunzinger, Broker
Listed By:
Jeremy Kunzinger
(512) 743-7885
Source:
Localcolorrealestateaustin
Added: Jun 18
Changed: Sep 4
Last Checked: Sep 4 at 11:32AM
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 Jeremy Kunzinger, Broker
Investment Insights
Based on property information with market context.
The McKinley Inn is a historic property built in 1897, offering lodging and event space in downtown Elgin, Texas. The inn can accommodate up to 16 overnight guests using beds and couches, and it is available for events up to 50 guests. Four private suites include curbless showers and TVs, and the property is described as blending original details such as hardwood floors, exposed brick, and vintage fixtures with modern updates including high-speed Wi‑Fi and central air conditioning.
The property is on Historic Main St in downtown Elgin and is walkable to bars, coffee shops, restaurants, antique shops, and galleries. The listing also notes a fully equipped kitchen, an outdoor cooking and dining area, and an outdoor setup including a smokeless fire pit.
Additional amenities referenced in the listing include a 3000 sf side yard for gatherings, a 120-inch laser TV with a top-of-the-line sound system, and a historic bar area. The property is offered for sale, and a residential loan product is described as available through Prosperity Bank.
The property is on Historic Main St in downtown Elgin and is walkable to bars, coffee shops, restaurants, antique shops, and galleries. The listing also notes a fully equipped kitchen, an outdoor cooking and dining area, and an outdoor setup including a smokeless fire pit.
Additional amenities referenced in the listing include a 3000 sf side yard for gatherings, a 120-inch laser TV with a top-of-the-line sound system, and a historic bar area. The property is offered for sale, and a residential loan product is described as available through Prosperity Bank.
Key Highlights
- Built in 1897, The McKinley Inn is located on Historic Main St in downtown Elgin, TX
- Accommodates up to 16 overnight guests on beds and couches
- Available for events and gatherings for up to 50 guests
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
$29,795
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
3.98%
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%
$595,900
$595.9K
Cap Rate 7%
$425,643
$425.6K
Cap Rate 9%
$331,056
$331.1K
Market Conditions
NOI Build-Up for 3,300 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
$71.3K $21.60/SF
− Vacancy
−$8.6K −$2.59/SF
EGI
$62.7K $19.01/SF
− OpEx
−$32.9K −$9.98/SF
NOI
$29.8K $9.03/SF
Area
Bastrop County, TX
Vacancy
12.00%
Lease Rate
$21.60 /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%
$595,900
Cap Rate 7%
$425,643
Cap Rate 9%
$331,056
Alternative Uses
Best Use
Hotel Hospitality
$425.6K
$372.4K – $496.6K
NOI $29,795 @ 7.0% cap · market cap 3.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.29M
$1.13M – $1.51M
NOI $90,521 @ 7.0% cap · market cap 12.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
498
Businesses Nearby
Explore this area
Business Placement
Demographics for 78621, TX
27,275
Population
10,671
Households
2.6
Avg Household Size
36
Median Age
24%
College-Educated
81%
High-School Grad
177.7 sq mi
ZIP Area
153
Density / Sq Mi
$88,246
Median Household Income
$48,955
Median Earnings
$1,317
Median Rent
$262,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Built in 1897, this inn accommodates up to 16 guests overnight and hosts events for up to 50.
Where is this hotel located?
The property is located at 4 Depot ST Elgin, TX.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: Built in 1897, The McKinley Inn is located on Historic Main St in downtown Elgin, TX; Accommodates up to 16 overnight guests on beds and couches; Available for events and gatherings for up to 50 guests
