Mixed-Use Property with Loft
For Sale
$250,000
512 Valley Street, San Marcos, TX 78666
Mixed Use Zoning allows a residential home, short-term rental use, commercial space with loft apartments, and restaurant use.
Property Size1,604 SF
Price / SF$155.86
Days on Market50
Property Features for 512 Valley Street
General Information
Standard status
Active
Size
1,604 SF
Property subtype
CommercialSale
Zoning
Mixed Use
Building Details
Buildings
1
Listing Agency:
Real Broker, LLC
(512) 557-5549
Listed By:
Natalie Butler-Megerson · License #0678374
(512) 557-5549
Source:
Cornerstone-properties
Added: Jul 13
Changed: Aug 30
Last Checked: Aug 30 at 5:39PM
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 Real Broker, LLC
Investment Insights
Based on property information with market context.
Located at 512 Valley Street in San Marcos, this mixed-use property is configured as a home and carries Mixed Use Zoning. The property is positioned near Texas State University and Downtown San Marcos.
Approved use examples include short-term rentals, restaurant operations, and a combination of commercial space on the lower level with loft apartments above. The existing residential format also allows the property to function as a home, subject to applicable approvals and requirements.
Approved use examples include short-term rentals, restaurant operations, and a combination of commercial space on the lower level with loft apartments above. The existing residential format also allows the property to function as a home, subject to applicable approvals and requirements.
Key Highlights
- Mixed Use Zoning
- Located near Texas State University
- Located near Downtown San Marcos
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
$21,654
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
8.66%
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%
$433,080
$433.1K
Cap Rate 7%
$309,343
$309.3K
Cap Rate 9%
$240,600
$240.6K
Market Conditions
NOI Build-Up for 1,604 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
$38.5K $24.00/SF
− Vacancy
−$3.8K −$2.40/SF
EGI
$34.6K $21.60/SF
− OpEx
−$13.0K −$8.10/SF
NOI
$21.7K $13.50/SF
Area
Hays County, TX
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$433,080
Cap Rate 7%
$309,343
Cap Rate 9%
$240,600
Alternative Uses
Best Use
Apartment 5plus
$351.3K
$307.4K – $409.8K
NOI $24,588 @ 7.0% cap · market cap 9.84%
Second Best
Mixed Use
$309.3K
$270.7K – $360.9K
NOI $21,654 @ 7.0% cap · market cap 8.66%
Theoretical Best
Office A
$670.5K
$586.7K – $782.3K
NOI $46,936 @ 7.0% cap · market cap 18.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,469
Businesses Nearby
Explore this area
Business Placement
Demographics for 78666, TX
86,584
Population
36,354
Households
2.4
Avg Household Size
27
Median Age
35%
College-Educated
89%
High-School Grad
192.4 sq mi
ZIP Area
450
Density / Sq Mi
$55,478
Median Household Income
$25,890
Median Earnings
$1,294
Median Rent
$271,900
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed Use Zoning allows a residential home, short-term rental use, commercial space with loft apartments, and restaurant use.
Where is this mixed-use property located?
The property is located at 512 Valley Street San Marcos, TX.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: Mixed Use Zoning; Located near Texas State University; Located near Downtown San Marcos
