San Marcos Mixed-Use Investment
For Sale
$790,000
521 & 525 W Hutchison St, San Marcos, TX 78666
Two adjoining properties near Texas State University and Historic Downtown.
Property Size5,295 SF
Lot Size0.41 Acres
Days on Market172
Property Features for 521 & 525 W Hutchison St
General Information
Standard status
Active
Size
5,295 SF
Lot size
0.41 Acres
Property subtype
Commercial
Building Details
Building Size
5,295 SF
Year Built
2010
Stories
1
Listing Agency:
McNabb & Company Real Estate Services
(254) 931-0102
Listed By:
Michael Nolen · License #0621420
(254) 931-0102
Source:
Elliman
Added: Mar 11
Changed: Aug 22
Last Checked: Aug 29 at 10:43AM
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 McNabb & Company Real Estate Services
Investment Insights
Based on property information with market context.
This offering features two adjoining properties situated in the heart of San Marcos, within walking distance of Texas State University and the Historic Downtown Square. The package includes a commercial building at 521 W Hutchison St and a multifamily property at 525 W Hutchison St, offering a combination of rental income and long-term potential. The commercial building, zoned Mixed Use, provides adaptable office or retail space with street visibility, convenient parking, and flexible layouts. It is suited for professional services, creative businesses, or boutique retail users. The multifamily property includes two rental units. Unit A features 3 bedrooms and 2 bathrooms and has been historically leased for $2,100 per month. Unit B features 5 bedrooms and 3 bathrooms, equipped with two refrigerators and two washer/dryer sets, and has been historically leased for $2,900 per month. Both units have demonstrated strong occupancy, appealing to students and young professionals seeking proximity to campus and downtown amenities. The properties at 521–525 W Hutchison St represent an investment with diverse income streams, walkable convenience, and redevelopment potential under the city’s downtown zoning. This offering is suitable for investors seeking dependable returns or owner-users looking for a mixed-use asset.
Key Highlights
- Prime location: Walking distance to Texas State University and the Historic Downtown Square.
- Two adjoining properties: Commercial building (521 W Hutchison St) and multifamily property (525 W Hutchison St).
- Steady rental income: Multifamily property with two historically well‑leased units.
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
$71,483
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
9.05%
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%
$1,429,660
$1.4M
Cap Rate 7%
$1,021,186
$1.0M
Cap Rate 9%
$794,256
$794.3K
Market Conditions
NOI Build-Up for 5,295 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
$127.1K $24.00/SF
− Vacancy
−$12.7K −$2.40/SF
EGI
$114.4K $21.60/SF
− OpEx
−$42.9K −$8.10/SF
NOI
$71.5K $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%
$1,429,660
Cap Rate 7%
$1,021,186
Cap Rate 9%
$794,256
Alternative Uses
Best Use
Multifamily LT 5
$1.27M
$1.11M – $1.48M
NOI $88,790 @ 7.0% cap · market cap 11.24%
Second Best
Apartment 5plus
$1.16M
$1.01M – $1.35M
NOI $81,168 @ 7.0% cap · market cap 10.27%
Theoretical Best
Office A
$2.21M
$1.94M – $2.58M
NOI $154,941 @ 7.0% cap · market cap 19.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,654
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 - Two adjoining properties near Texas State University and Historic Downtown.
Where is this mixed-use property located?
The property is located at 521 & 525 W Hutchison St San Marcos, TX.
What is the asking price?
The asking price for this property is $790,000.
What are key features of this property?
This property features: Prime location: Walking distance to Texas State University and the Historic Downtown Square.; Two adjoining properties: Commercial building (521 W Hutchison St) and multifamily property (525 W Hutchison St).; Steady rental income: Multifamily property with two historically well‑leased units.
