Insulated Shop and Equestrian
For Sale
$789,500
516 Stark Lane, Sherman, TX 75090
A 9,500-square-foot insulated shop with office, kitchen, and three insulated horse stalls, plus a fully fenced 5.51-acre lot.
Property Size9,500 SF
Lot Size5.51 Acres
Price / SF$83.11
Days on Market49
Property Features for 516 Stark Lane
General Information
Standard status
Active
Size
9,500 SF
Lot size
5.51 Acres
Property subtype
Industrial
Site & Location
Fenced Yard
Yes
Outdoor Storage
Yes
Building Details
Year Built
1980
Listing Agency:
Lonestar Luxury Realty
Listed By:
Rene Jensen · License #0647481
(214) 532-6823
Source:
Lonestarluxuryrealty
Added: Jul 24
Changed: Sep 10
Last Checked: Sep 10 at 6:03AM
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 Lonestar Luxury Realty
Investment Insights
Based on property information with market context.
This property features a 9,500-square-foot insulated shop designed for versatility. The facility includes an office, spacious restroom, and a full kitchen. The back portion of the shop is set up for equestrian use with three insulated 12' x 12' horse stalls and a dedicated water line. Beyond the stalls, there is a covered open-air breezeway that can serve as additional space for equipment storage, trailers, or boats.
The home on the property was constructed with careful attention to detail and includes spacious living areas with custom cabinetry throughout. Expansive windows bring in views of the surrounding countryside, and mature trees help create a private setting. The acreage totals 5.51 acres and is fully perimeter fenced and cross-fenced with slick wire. A pond at the back of the property adds a quiet, scenic element to the setting.
With its integrated shop improvements, equestrian stall setup, and on-site residence, the property offers a live-work style configuration on a fenced, acreage lot at 516 Stark Lane, Sherman, TX 75090.
The home on the property was constructed with careful attention to detail and includes spacious living areas with custom cabinetry throughout. Expansive windows bring in views of the surrounding countryside, and mature trees help create a private setting. The acreage totals 5.51 acres and is fully perimeter fenced and cross-fenced with slick wire. A pond at the back of the property adds a quiet, scenic element to the setting.
With its integrated shop improvements, equestrian stall setup, and on-site residence, the property offers a live-work style configuration on a fenced, acreage lot at 516 Stark Lane, Sherman, TX 75090.
Key Highlights
- 9,500‑SF insulated shop built in 1980 with office, spacious restroom, and full kitchen
- Shop includes three insulated 12' x 12' horse stalls with a dedicated water line
- Back portion offers a covered open‑air breezeway for additional equipment, trailer, or boat storage
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
Industrial
$707.0K
$618.6K – $824.8K
NOI $49,489 @ 7.0% cap · market cap 6.27%
Second Best
—
—
no second resolved use
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
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Open Analytics
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
15
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
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Market
Vacancy Rate% for Industrial in South region
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Frequently Asked Questions
What type of property is this?
Manufacturing property - A 9,500-square-foot insulated shop with office, kitchen, and three insulated horse stalls, plus a fully fenced 5.51-acre lot.
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‑SF insulated shop built in 1980 with office, spacious restroom, and full kitchen; Shop includes three insulated 12' x 12' horse stalls with a dedicated water line; Back portion offers a covered open‑air breezeway for additional equipment, trailer, or boat storage
