Goodman Distribution
New
For Sale
$9,423,000
402 W Elms Rd, Killeen, TX 76542
NNN lease structure includes corporate backing and scheduled rent escalations.
Property Size45,228 SF
Lot Size4.30 Acres
Price / SF$208.34
Days on Market3
Property Features for 402 W Elms Rd
General Information
Standard status
Active
Size
45,228 SF
Lot size
4.30 Acres
Property subtype
Industrial
Zoning
B-5 - Business District
Additional Details
Highway Access
Yes
Heavy Power
Yes
Building Details
Building Size
45,228 SF
Year Built
2025
Tenancy
Single
Listing Agency:
SRS Industrial - Newport Beach
(714) 404-8849
Listed By:
Matthew Mousavi · License #CA 01732226
(714) 404-8849
Source:
Srsre
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 9 at 4:27AM
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 SRS Industrial - Newport Beach
Investment Insights
Based on property information with market context.
This Goodman Distribution facility consists of a 45,228 SF distribution building completed in 2025 on 4.30 acres. The improvements combine warehouse space with dedicated office areas, heavy power, and ample parking. Ownership includes the land and building under a fee simple structure, while the NNN lease limits landlord obligations and places CAM, taxes, and insurance responsibilities with the tenant.
The property is positioned south of Interstate 14, which records 77,300 VPD and supports regional customer and distribution access. The surrounding trade area includes automotive, building supply, industrial service, and contractor-oriented businesses, along with national retailers such as Walmart, Lowe’s, H-E-B, Home Depot, Best Buy, Ross, TJ Maxx, Burlington, Academy Sports, PetSmart, Starbucks, McDonald’s, and Chick-fil-A.
The initial lease has over 9 years remaining and includes 2 (7-year) extension options. Annual 2% rental increases apply during the initial term, with fair market value increases during the option periods. The lease also carries a corporate guarantee from Daikin Company Technologies North America Inc.
The property is positioned south of Interstate 14, which records 77,300 VPD and supports regional customer and distribution access. The surrounding trade area includes automotive, building supply, industrial service, and contractor-oriented businesses, along with national retailers such as Walmart, Lowe’s, H-E-B, Home Depot, Best Buy, Ross, TJ Maxx, Burlington, Academy Sports, PetSmart, Starbucks, McDonald’s, and Chick-fil-A.
The initial lease has over 9 years remaining and includes 2 (7-year) extension options. Annual 2% rental increases apply during the initial term, with fair market value increases during the option periods. The lease also carries a corporate guarantee from Daikin Company Technologies North America Inc.
Key Highlights
- 45,228 SF distribution facility completed in 2025
- Situated on 4.30 acres at 402 W Elms Rd, Killeen, TX 76542
- NNN lease with tenant responsibility for CAM, taxes, and insurance
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
$597,878
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
6.34%
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%
$11,957,560
$12.0M
Cap Rate 7%
$8,541,114
$8.5M
Cap Rate 9%
$6,643,089
$6.6M
Market Conditions
NOI Build-Up for 45,228 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
$976.9K $21.60/SF
− Vacancy
−$179.8K −$3.97/SF
EGI
$797.2K $17.63/SF
− OpEx
−$199.3K −$4.41/SF
NOI
$597.9K $13.22/SF
Area
Killeen, TX
Vacancy
18.40%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
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%
$11,957,560
Cap Rate 7%
$8,541,114
Cap Rate 9%
$6,643,089
Alternative Uses
Best Use
Office B
$8.54M
$7.47M – $9.96M
NOI $597,878 @ 7.0% cap · market cap 6.34%
Second Best
Warehouse
$4.65M
$4.07M – $5.42M
NOI $325,235 @ 7.0% cap · market cap 3.45%
Theoretical Best
Office A
$10.86M
$9.51M – $12.67M
NOI $760,438 @ 7.0% cap · market cap 8.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Heavy power
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
528
Businesses Nearby
Explore this area
Business Placement
Demographics for 76542, TX
53,312
Population
21,027
Households
2.5
Avg Household Size
32
Median Age
29%
College-Educated
94%
High-School Grad
63.0 sq mi
ZIP Area
846
Density / Sq Mi
$72,891
Median Household Income
$42,506
Median Earnings
$1,237
Median Rent
$228,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution center - NNN lease structure includes corporate backing and scheduled rent escalations.
Where is this distribution center located?
The property is located at 402 W Elms Rd Killeen, TX.
What is the asking price?
The asking price for this property is $9,423,000.
What are key features of this property?
This property features: 45,228 SF distribution facility completed in 2025; Situated on 4.30 acres at 402 W Elms Rd, Killeen, TX 76542; NNN lease with tenant responsibility for CAM, taxes, and insurance
