Commercial Land with Existing
New
For Sale
$1,000,000
4611-A FM 1387, Midlothian, TX 76065
Development site with an existing residential structure and on-site utilities.
Property Size2,316 SF
Days on Market2
Property Features for 4611-A FM 1387
General Information
Standard status
Active
Size
2,316 SF
Property subtype
Retail
Taxes and HOA fees
Annual Taxes
$7,866
Building Details
Building Size
2,316 SF
Year Built
1974
Listing Agency:
All City Real Estate, Ltd Co
Listed By:
Donna David
(866) 277-6005
Source:
Baerealty
Added: Sep 22
Changed: Sep 23
Last Checked: Sep 22 at 4:58PM
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 All City Real Estate, Ltd Co
Investment Insights
Based on property information with market context.
This 4.04-acre commercial land tract includes a 2,316-square-foot residential structure built in 1974. The existing improvement remains on the property while the site is positioned for commercial and mixed-use development. On-site utilities are available, and the parcel has frontage along FM 1387.
The property is situated near schools, established retail, Starbucks, Tom Thumb, and Walnut Grove Academy. Surrounding residential construction and commercial activity provide an established development context along the corridor, with access to major thoroughfares.
The property is situated near schools, established retail, Starbucks, Tom Thumb, and Walnut Grove Academy. Surrounding residential construction and commercial activity provide an established development context along the corridor, with access to major thoroughfares.
Key Highlights
- 4.04‑acre commercial land tract
- Includes a 2,316‑square‑foot residential structure built in 1974
- Frontage along FM 1387
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
$38,442
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
3.84%
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%
$768,840
$768.8K
Cap Rate 7%
$549,171
$549.2K
Cap Rate 9%
$427,133
$427.1K
Market Conditions
NOI Build-Up for 2,316 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
$57.8K $24.96/SF
− Vacancy
−$2.9K −$1.25/SF
EGI
$54.9K $23.71/SF
− OpEx
−$16.5K −$7.11/SF
NOI
$38.4K $16.60/SF
Area
Ellis County, TX
Vacancy
5.00%
Lease Rate
$24.96 /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%
$768,840
Cap Rate 7%
$549,171
Cap Rate 9%
$427,133
Alternative Uses
Best Use
Retail
$549.2K
$480.5K – $640.7K
NOI $38,442 @ 7.0% cap · market cap 3.84%
Second Best
Mixed Use
$379.7K
$332.2K – $442.9K
NOI $26,576 @ 7.0% cap · market cap 2.66%
Theoretical Best
Multifamily LT 5
$25.27M
$22.11M – $29.48M
NOI $1,768,996 @ 7.0% cap · market cap 176.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
44
Businesses Nearby
Explore this area
Business Placement
Demographics for 76065, TX
42,827
Population
15,081
Households
2.8
Avg Household Size
37
Median Age
36%
College-Educated
92%
High-School Grad
100.9 sq mi
ZIP Area
424
Density / Sq Mi
$123,664
Median Household Income
$61,420
Median Earnings
$1,873
Median Rent
$378,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - Development site with an existing residential structure and on-site utilities.
Where is this commercial land located?
The property is located at 4611-A FM 1387 Midlothian, TX.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: 4.04‑acre commercial land tract; Includes a 2,316‑square‑foot residential structure built in 1974; Frontage along FM 1387
