Mixed-Use Property with Detached
New
For Sale
$665,000
601 Houston School Road, Red Oak, TX 75154
Corner-lot property with commercial and residential zoning, multiple structures, and access from the Loop 9 frontage road.
Property Size1,785 SF
Days on Market3
Property Features for 601 Houston School Road
General Information
Standard status
Active
Size
1,785 SF
Property subtype
Business
Site & Location
Highway Access
Yes
Road Access
Yes
Outdoor Storage
Yes
Additional Details
Opportunity Zone
Yes
Warehouse Space
3,076 SF
Taxes and HOA fees
Annual Taxes
$3,161
Building Details
Building Size
1,785 SF
Year Built
1989
Listing Agency:
Relo Radar
(817) 774-9077
Listed By:
Josh Mills · License #0523527
Source:
Nilesrealtygroup
Added: Aug 30
Changed: Aug 31
Last Checked: Aug 31 at 9:34PM
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 Relo Radar
Investment Insights
Based on property information with market context.
This mixed-use property includes a 1,785-square-foot residential home built in 1989, a detached 20-by-21 structure with a kitchenette, and a metal garage-shop with a second floor. The additional structures provide office, studio, inventory storage, and covered storage or parking areas. A 12-by-50 covered section sits behind a metal fence.
The property occupies a corner lot with access from the Loop 9 frontage road and is zoned for both commercial and residential purposes. It is located within a designated Opportunity Zone and directly across from a new 172-acre data center. The property is currently used as a residence and includes improvements that can support conversion to office or other commercial uses.
The property occupies a corner lot with access from the Loop 9 frontage road and is zoned for both commercial and residential purposes. It is located within a designated Opportunity Zone and directly across from a new 172-acre data center. The property is currently used as a residence and includes improvements that can support conversion to office or other commercial uses.
Key Highlights
- 1,785‑square‑foot residential home built in 1989
- 20x21 detached structure with kitchenette
- Metal garage‑shop includes a second floor for inventory 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
$29,858
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
4.49%
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%
$597,160
$597.2K
Cap Rate 7%
$426,543
$426.5K
Cap Rate 9%
$331,756
$331.8K
Market Conditions
NOI Build-Up for 1,785 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
$54.8K $30.72/SF
− Vacancy
−$15.0K −$8.42/SF
EGI
$39.8K $22.30/SF
− OpEx
−$10.0K −$5.58/SF
NOI
$29.9K $16.73/SF
Area
Ellis County, TX
Vacancy
27.40%
Lease Rate
$30.72 /SF/Yr
Expense Ratio
25.00%
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%
$597,160
Cap Rate 7%
$426,543
Cap Rate 9%
$331,756
Alternative Uses
Best Use
Office B
$426.5K
$373.2K – $497.6K
NOI $29,858 @ 7.0% cap · market cap 4.49%
Second Best
Mixed Use
$292.6K
$256.0K – $341.4K
NOI $20,483 @ 7.0% cap · market cap 3.08%
Theoretical Best
Multifamily LT 5
$19.48M
$17.04M – $22.72M
NOI $1,363,410 @ 7.0% cap · market cap 205.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
14
Businesses Nearby
Explore this area
Business Placement
Demographics for 75154, TX
45,894
Population
17,170
Households
2.7
Avg Household Size
36
Median Age
31%
College-Educated
88%
High-School Grad
47.8 sq mi
ZIP Area
960
Density / Sq Mi
$96,150
Median Household Income
$48,112
Median Earnings
$1,446
Median Rent
$296,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Corner-lot property with commercial and residential zoning, multiple structures, and access from the Loop 9 frontage road.
Where is this mixed-use property located?
The property is located at 601 Houston School Road Red Oak, TX.
What is the asking price?
The asking price for this property is $665,000.
What are key features of this property?
This property features: 1,785‑square‑foot residential home built in 1989; 20x21 detached structure with kitchenette; Metal garage‑shop includes a second floor for inventory storage
