Insulated Manufacturing
For Sale
$789,500
516 Stark Lane, Sherman, TX 75090
COMMERCIAL - Sherman, TX
Property Size9,500 SF
Lot Size5.51 Acres
Price / SF$83.11
Days on Market46
Property Features for 516 Stark Lane
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
commercial
Parking features
Driveway
Subdivision
Helvey Add
Lot features
Acreage, Pond On Lot
Directions
US-75 South, Exit 54 towards FM-902. Turn left onto FM-902, turn left onto Shepherd Rd, turn right onto Stark Ln, home on the right about .5 miles
Standard status
Active
APN
128952
Size
9,500 SF
Lot size
5.51 Acres
Taxes and HOA fees
Tax Description
HELVEY ADDN, LOT 1
Tax Annual Amount
8981
Legal Description
HELVEY ADDN, LOT 1
Utilities
Sewer type
Septic Tank
Water source
Public
Amenities
office
restroom
full kitchen
covered breezeway
Building Details
Year built
1980
Floors in Building
1
Number of units
1
Flooring type
Concrete
Building materials
MetalSiding
Roof type
Metal
Listing Agency:
Wanja Powers
(214) 284-5845
Listed By:
Wanja Powers
(214) 284-5845
Added: Jul 17
Changed: Aug 12
Last Checked: Aug 31 at 9:06AM
MLS# 21330644
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.
Investment Insights
Based on property information with market context.
This manufacturing property combines a 9,500-square-foot insulated shop with supporting office, restroom, and kitchen areas. The building has concrete flooring, a metal roof, metal siding, driveway parking, public water, and septic service. It was built in 1980 and most recently operated as a cabinet manufacturing business.
Set on 5.51 acres, the property also includes three insulated 12' x 12' horse stalls with a dedicated water line. A covered breezeway extends beyond the stalls for equipment, trailer, or boat storage. The acreage is perimeter fenced and cross-fenced with slick wire, and a pond is located at the rear. A residence on the property features custom cabinetry, spacious living areas, expansive windows, and views of the surrounding countryside.
Set on 5.51 acres, the property also includes three insulated 12' x 12' horse stalls with a dedicated water line. A covered breezeway extends beyond the stalls for equipment, trailer, or boat storage. The acreage is perimeter fenced and cross-fenced with slick wire, and a pond is located at the rear. A residence on the property features custom cabinetry, spacious living areas, expansive windows, and views of the surrounding countryside.
Key Highlights
- 9,500‑square‑foot insulated manufacturing shop on 5.51 acres
- Office, spacious restroom, and full kitchen within the facility
- Three insulated 12' x 12' horse stalls with dedicated water line
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
$49,489
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
6.27%
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%
$989,780
$989.8K
Cap Rate 7%
$706,986
$707.0K
Cap Rate 9%
$549,878
$549.9K
Market Conditions
NOI Build-Up for 9,500 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
$77.5K $8.16/SF
− Vacancy
−$6.8K −$0.72/SF
EGI
$70.7K $7.44/SF
− OpEx
−$21.2K −$2.23/SF
NOI
$49.5K $5.21/SF
Area
Grayson County, TX
Vacancy
8.80%
Lease Rate
$8.16 /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%
$989,780
Cap Rate 7%
$706,986
Cap Rate 9%
$549,878
Alternative Uses
Best Use
Office B
$2.27M
$1.99M – $2.65M
NOI $158,907 @ 7.0% cap · market cap 20.13%
Second Best
Mixed Use
$1.34M
$1.18M – $1.57M
NOI $94,050 @ 7.0% cap · market cap 11.91%
Theoretical Best
Hotel Hospitality
$4.87M
$4.26M – $5.69M
NOI $341,145 @ 7.0% cap · market cap 43.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
11
Businesses Nearby
Explore this area
Business Placement
Demographics for 75090, TX
25,002
Population
9,602
Households
2.6
Avg Household Size
35
Median Age
15%
College-Educated
84%
High-School Grad
78.5 sq mi
ZIP Area
318
Density / Sq Mi
$58,586
Median Household Income
$36,230
Median Earnings
$1,111
Median Rent
$163,500
Median Home Value
Market
Vacancy Rate% for Office 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?
Manufacturing property - Metal-sided facility includes office, restroom, kitchen, and equestrian accommodations.
Where is this manufacturing property located?
The property is located at 516 Stark Lane Sherman, TX.
What is the asking price?
The asking price for this property is $789,500.
What are key features of this property?
This property features: 9,500‑square‑foot insulated manufacturing shop on 5.51 acres; Office, spacious restroom, and full kitchen within the facility; Three insulated 12' x 12' horse stalls with dedicated water line
