Fredericksburg Commercial Property with Highway
For Sale
$3,000,000
520 Granite Ave, Fredericksburg, TX 78624
Prime commercial property with redevelopment potential in a high-traffic location.
Property Size8,200 SF
Lot Size1.25 Acres
Price / SF$365.85
Days on Market468
Property Features for 520 Granite Ave
General Information
Standard status
Active
Size
8,200 SF
Lot size
1.25 Acres
Listing Agency:
CC Herber Co., Real Estate
(830) 889-5410
Listed By:
Treff W. Herber · License #TREC#0484119
(830) 889-5410
Source:
Exprealty
Added: May 1, 2025
Changed: Aug 8
Last Checked: Jul 16 at 11:32AM
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 CC Herber Co., Real Estate
Investment Insights
Based on property information with market context.
This 1.25-acre commercial property in Fredericksburg offers an investment opportunity with exposure on Highway 87. Located 0.4 miles from Main Street, the site benefits from high traffic counts and visibility. The existing improvements include over 8,200 square feet of retail and showroom space, along with 1,800 square feet of warehouse and storage area. With street frontage on three sides and over half an acre of vacant land, the property presents redevelopment or expansion possibilities. Potential uses include restaurant, retail, winery, drive-through, office, or hospitality. This site offers a high-exposure location in a growing tourism and investment market.
Key Highlights
- Prime 1.25‑acre commercial property with Highway 87 exposure and high traffic counts.
- Excellent visibility and location just 0.4 miles from Main Street.
- Features 8,200+ sq. ft. of retail/showroom space and 1,800+ sq. ft. of warehouse/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
$121,725
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
4.06%
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%
$2,434,500
$2.4M
Cap Rate 7%
$1,738,929
$1.7M
Cap Rate 9%
$1,352,500
$1.4M
Market Conditions
NOI Build-Up for 8,200 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
$185.0K $22.56/SF
− Vacancy
−$11.1K −$1.35/SF
EGI
$173.9K $21.21/SF
− OpEx
−$52.2K −$6.36/SF
NOI
$121.7K $14.84/SF
Area
Gillespie County, TX
Vacancy
6.00%
Lease Rate
$22.56 /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%
$2,434,500
Cap Rate 7%
$1,738,929
Cap Rate 9%
$1,352,500
Alternative Uses
Best Use
Retail
$1.74M
$1.52M – $2.03M
NOI $121,725 @ 7.0% cap · market cap 4.06%
Second Best
Warehouse
$732.5K
$641.0K – $854.6K
NOI $51,276 @ 7.0% cap · market cap 1.71%
Theoretical Best
Hotel Hospitality
$6.21M
$5.43M – $7.24M
NOI $434,682 @ 7.0% cap · market cap 14.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,303
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78624, TX
23,080
Population
12,421
Households
1.9
Avg Household Size
52
Median Age
37%
College-Educated
89%
High-School Grad
742.3 sq mi
ZIP Area
31
Density / Sq Mi
$67,987
Median Household Income
$37,047
Median Earnings
$1,347
Median Rent
$439,600
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Showroom - Prime commercial property with redevelopment potential in a high-traffic location.
Where is this showroom located?
The property is located at 520 Granite Ave Fredericksburg, TX.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Prime 1.25‑acre commercial property with Highway 87 exposure and high traffic counts.; Excellent visibility and location just 0.4 miles from Main Street.; Features 8,200+ sq. ft. of retail/showroom space and 1,800+ sq. ft. of warehouse/storage.
