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    Business Neighborhood Zoned Development Land Title is generated by Realmo AI

    505 S Chestnut Street, McKinney, TX 75069

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    Claim this Listing
    Pending
    $400,000

    SINGLE_FAMILY - McKinney, TX

    Type:Retail
    Property size:
    1,552 SF
    Lot size:
    0.27 Acres
    Added:
    Mar 24, 2026
    Days on Market:
    73
    Last Refresh:
    Jun 4 at 12:06 am

    Property Features for 505 S Chestnut Street

    General Information

    Property type
    Residential
    Property subtype
    Retail
    Parking features
    Driveway
    Standard status
    Pending
    APN
    R094101800201
    Lot size
    0.27 Acres

    Taxes and HOA fees

    Tax Description
    SHORTS ADDITION (CMC), BLK 18, LOT 2
    Tax Annual Amount
    4234

    Utilities

    Sewer type
    Public Sewer
    Heating system
    Natural Gas
    Cooling system
    Window Unit(s)
    Water source
    Public

    Building Details

    Year built
    1915
    Floors in Building
    1
    Number of units
    1
    Flooring type
    Wood
    Building materials
    Frame, WoodSiding
    Roof type
    Composition

    We can help!

    Listing Contact
    Wesley Haile

    Listing agent Wesley Haile License #0712321

    Listing office Russell Realty McKinney, TX

    Listing date Mar 24, 2026

    MLS# 21203913

    Copyright © 2026 North Texas Real Estate Information Systems, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    HighLights

    • Lot size 11,717 SF zoned BN (Business Neighborhood) on the HWY 5 corridor in McKinney
    • Includes an existing 1,552 SF home on the lot (buyer can rent it out until development to commercial)
    • Home built in 1915 with frame construction and wood siding
    • Utilities include public water and public sewer; natural gas heating; window unit cooling
    • Composition roof and wood flooring; driveway parking
    • Area development noted: Starbucks under construction across the street; City Hall just north; mixed‑use development nearby; strip retail under construction to the south

    Overview

    This parcel is zoned BN (Business Neighborhood) and includes an existing 1,552 square foot home on a 11,717 square foot lot. The property offers an investor-ready setup today, with the option to keep the home as a rental while planning for eventual commercial redevelopment. For buyers looking for a staged approach, the current residence provides near-term income potential tied to longer-term upside.

    The site is located in a prime area along the redevelopment of the HWY 5 corridor in McKinney. Starbucks is being built across the street, and the new City Hall of McKinney is located just north of the property along with a mixed-use development. Just south, a strip retail center is under construction, reinforcing the momentum in the immediate surrounding area.

    Ideal for investors and developers who want to control a BN-zoned piece of the HWY 5 growth corridor, this offering supports a practical “rent now, redevelop later” strategy. It may also appeal to buyers seeking to hold a commercially oriented tract while the surrounding retail and civic projects come online.

    Local Financial Insights For Apartment 5plus

    Simulate Cap Rate and NOI

    NOI Build-Up
    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.

    Component $ $/SF
    Gross rent $54.9k $35.40
    − Vacancy −$5.9k −$3.79
    EGI $49.1k $31.61
    − OpEx −$22.1k −$14.23
    NOI $27.0k $17.39
    1,552 SF · lease $35.40/SF/yr · vacancy 10.70% · expense 45.00%

    Alternative Uses

    Best Use
    Apartment 5plus
    $385.5K
    $337.3K – $449.7K (±1% cap)
    NOI $26,984 @ 7.0% cap · market cap 6.75%
    Second Best
    —
    —
    no second resolved use
    Theoretical Best
    Office A
    $436.3K
    $381.8K – $509.1K (±1% cap)
    NOI $30,543 @ 7.0% cap · market cap 7.64%
    Zoning and permitted uses should be independently verified with local authorities.
    Property Profile Location Intelligence

    Current Use by Public Records

    Single family properties

    Suggested Use

    Real Estate Agency Law Firm Restaurant Spa & Massage Center Dental Office Hair Salon Nail Salon Building Supply Gym & Fitness Center Pharmacy

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    McKinney
    County
    Collin
    State
    Texas
    Longitude
    -96.613319
    Latitude
    33.19243

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    FAQs

    What type of property is this?
    Single family property - Zoned BN land with an existing home, offering rental income potential while future commercial development takes shape.
    Where is this single family property located?
    The property is located at 505 S Chestnut Street McKinney, TX.
    What is the asking price?
    The asking price for this property is $400,000.
    What are key features of this property?
    This property features: Lot size 11,717 SF zoned BN (Business Neighborhood) on the HWY 5 corridor in McKinney; Includes an existing 1,552 SF home on the lot (buyer can rent it out until development to commercial); Home built in 1915 with frame construction and wood siding
    (469) 223-5972
    We can help!
    Listing Contact
    Wesley Haile
    Real Estate License ID: 0712321
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
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