Updated Office Building with Covered
New
For Sale
$199,900
504 E Avenue C, Valley Mills, TX 76689
Multi-use office property with flexible interior space, private rooms, storage, and Commercial and Residential zoning.
Property Size1,456 SF
Days on Market7
Property Features for 504 E Avenue C
General Information
Standard status
Active
Size
1,456 SF
Property subtype
Commercial
Zoning
Commerical and Residential
Site & Location
Highway Access
Yes
Road Access
Yes
Utilities to Site
Yes
Amenities
Covered front porch
Tankless hot water heater
Central heat and air
Window unit
Storage building
Covered parking
Seamless gutters
Building Details
Building Size
1,456 SF
Year Built
1950
Buildings
2
Stories
1
Units
1
Listing Agency:
Rockin' KH Properties, LLC
(254) 717-7590
Listed By:
Kristy Hollingsworth · License #619656
(254) 717-7590
Source:
Cornerstonehomeandranch
Added: Aug 23
Changed: Aug 28
Last Checked: Aug 29 at 10:19AM
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 Rockin' KH Properties, LLC
Investment Insights
Based on property information with market context.
Built in 1950, this office building combines a private front office with a larger central room that can accommodate desks, partitions, or flexible workspace. A separate rear room includes a sink, counter area, storage shelving, and a half bathroom. Interior improvements include rustic finishes, barnwood walls, concrete floors, and a metal roof. Building systems include central heat and air, a window unit, a tankless hot water heater, natural gas lines, and city utilities.
The property is located at 504 E Avenue C in Valley Mills, with parking along Hwy 6 and two additional carports at the rear. A covered front porch with sidewalk access, rear covered parking, and a separate storage building add functional utility. Commercial and Residential zoning supports the property's multi-use office configuration.
The property is located at 504 E Avenue C in Valley Mills, with parking along Hwy 6 and two additional carports at the rear. A covered front porch with sidewalk access, rear covered parking, and a separate storage building add functional utility. Commercial and Residential zoning supports the property's multi-use office configuration.
Key Highlights
- Office building constructed in 1950
- Flexible main workspace plus private front and rear rooms
- Commercial and Residential zoning
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
$14,656
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
7.33%
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%
$293,120
$293.1K
Cap Rate 7%
$209,371
$209.4K
Cap Rate 9%
$162,844
$162.8K
Market Conditions
NOI Build-Up for 1,456 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
$25.3K $17.40/SF
− Vacancy
−$2.8K −$1.91/SF
EGI
$22.5K $15.49/SF
− OpEx
−$7.9K −$5.42/SF
NOI
$14.7K $10.07/SF
Area
Bosque County, TX
Vacancy
11.00%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
35.00%
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%
$293,120
Cap Rate 7%
$209,371
Cap Rate 9%
$162,844
Alternative Uses
Best Use
Office B
$289.2K
$253.0K – $337.4K
NOI $20,242 @ 7.0% cap · market cap 10.13%
Second Best
Flex RnD
$209.4K
$183.2K – $244.3K
NOI $14,656 @ 7.0% cap · market cap 7.33%
Theoretical Best
Office A
$384.1K
$336.1K – $448.2K
NOI $26,889 @ 7.0% cap · market cap 13.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
106
Businesses Nearby
Explore this area
Business Placement
Demographics for 76689, TX
3,991
Population
1,782
Households
2.2
Avg Household Size
42
Median Age
20%
College-Educated
91%
High-School Grad
223.9 sq mi
ZIP Area
18
Density / Sq Mi
$76,250
Median Household Income
$46,881
Median Earnings
$1,135
Median Rent
$228,800
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?
Office building - Multi-use office property with flexible interior space, private rooms, storage, and Commercial and Residential zoning.
Where is this office building located?
The property is located at 504 E Avenue C Valley Mills, TX.
What is the asking price?
The asking price for this property is $199,900.
What are key features of this property?
This property features: Office building constructed in 1950; Flexible main workspace plus private front and rear rooms; Commercial and Residential zoning
