Silos Adjacent Development
For Sale
$935,000
401 S 8th St, Waco, TX 76706
Development property next to Magnolia Silos with historic charm.
Property Size3,500 SF
Price / SF$267.14
Days on Market274
Property Features for 401 S 8th St
General Information
Standard status
Active
Size
3,500 SF
Property subtype
Retail
Building Details
Building Size
3,500 SF
Year Built
1944
Listing Agency:
Reid Peevey Commercial Real Estate
(254) 722-9587
Listed By:
Josh Barrett · License #TX #736690
Source:
Reidpeevey
Added: Nov 21, 2025
Changed: Aug 20
Last Checked: Aug 22 at 4:54AM
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 Reid Peevey Commercial Real Estate
Investment Insights
Based on property information with market context.
This property, situated in the growing Silo District downtown, presents a rare opportunity for ownership adjacent to the Magnolia Silos. The property spans 0.68 acres and includes dedicated parking at the side and rear. An existing enclosed structure provides approximately 3,500 square feet of space. The historic railway building offers character and flexibility for renovation or redevelopment. The property is strategically located directly across from the Silos and includes land for on-site parking. It benefits from TIF Zone status and flexible C4 Zoning.
Key Highlights
- Prime location directly across from the Magnolia Silos
- .68 acres of land with dedicated on‑site parking
- Located in a dynamic and growing downtown Silo District
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
$40,785
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
4.36%
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%
$815,700
$815.7K
Cap Rate 7%
$582,643
$582.6K
Cap Rate 9%
$453,167
$453.2K
Market Conditions
NOI Build-Up for 3,500 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
$65.1K $18.60/SF
− Vacancy
−$6.8K −$1.95/SF
EGI
$58.3K $16.65/SF
− OpEx
−$17.5K −$4.99/SF
NOI
$40.8K $11.65/SF
Area
Waco, TX
Vacancy
10.50%
Lease Rate
$18.60 /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%
$815,700
Cap Rate 7%
$582,643
Cap Rate 9%
$453,167
Alternative Uses
Best Use
Retail
$582.6K
$509.8K – $679.8K
NOI $40,785 @ 7.0% cap · market cap 4.36%
Second Best
Industrial
$441.9K
$386.7K – $515.6K
NOI $30,936 @ 7.0% cap · market cap 3.31%
Theoretical Best
Office A
$923.4K
$808.0K – $1.08M
NOI $64,638 @ 7.0% cap · market cap 6.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,950
Businesses Nearby
413k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 79%
Shops & Services 16%
Hotels & Casinos 4%
Chick-fil-A
Dining
55,091 visits/mo
0.4 miles
In-N-Out Burger
Dining
50,697 visits/mo
0.3 miles
Raising Cane's Chicken Fingers
Dining
44,368 visits/mo
0.4 miles
Whataburger
Dining
35,517 visits/mo
0.3 miles
Panera Bread
Dining
18,048 visits/mo
0.3 miles
Demographics for 76706, TX
39,303
Population
16,600
Households
2.4
Avg Household Size
27
Median Age
23%
College-Educated
85%
High-School Grad
72.3 sq mi
ZIP Area
544
Density / Sq Mi
$42,277
Median Household Income
$23,954
Median Earnings
$1,063
Median Rent
$180,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Development property next to Magnolia Silos with historic charm.
Where is this storefront property located?
The property is located at 401 S 8th St Waco, TX.
What is the asking price?
The asking price for this property is $935,000.
What are key features of this property?
This property features: Prime location directly across from the Magnolia Silos; .68 acres of land with dedicated on‑site parking; Located in a dynamic and growing downtown Silo District
