Mixed-Use Property on Highway
For Sale
Contact for pricing
702 S Washington St, Fredericksburg, TX 78624
C-2-zoned site with existing buildings and partially approved strip-center plans conveying with the sale.
Property Size11,700 SF
Price / SF$243.59
Days on Market160
Property Features for 702 S Washington St
General Information
Standard status
Active
Size
11,700 SF
Property subtype
Mixed Use
Zoning
C-2
Investment Type
Redevelopment
Building Details
Year Built
1970
Buildings
3
Stories
1
Units
3
Listing Agency:
Reata Ranch Realty, LLC
(325) 347-4702
Listed By:
Michele "Mitch" Smith · License #Tx9002241
Source:
Crexi
Added: Mar 26
Changed: Aug 30
Last Checked: Aug 31 at 11:45PM
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 Reata Ranch Realty, LLC
Investment Insights
Based on property information with market context.
This mixed-use property at 702 S Washington St includes existing buildings constructed in 1970 and encompasses 11,700 square feet. The buildings are being sold as is, with no representation regarding their current condition. Partially approved strip-center plans convey with the property. Zoning is C-2, and buyers should verify permitted uses and development requirements.
The site fronts South Washington Street, identified as US Highway 87, and is minutes from Main Street and Fredericksburg’s central business district. The surrounding area includes residential neighborhoods, lodging, and local businesses, while nearby U.S. Highway 290 provides regional connectivity between Austin, San Antonio, and the Texas Hill Country. Reported traffic volumes range from 7,000 to 10,000 vehicles per day along the highway corridor, with an additional nearby collector route carrying approximately 2,000 to 7,000 vehicles per day.
The site fronts South Washington Street, identified as US Highway 87, and is minutes from Main Street and Fredericksburg’s central business district. The surrounding area includes residential neighborhoods, lodging, and local businesses, while nearby U.S. Highway 290 provides regional connectivity between Austin, San Antonio, and the Texas Hill Country. Reported traffic volumes range from 7,000 to 10,000 vehicles per day along the highway corridor, with an additional nearby collector route carrying approximately 2,000 to 7,000 vehicles per day.
Key Highlights
- 11,700‑square‑foot mixed‑use property at 702 S Washington St
- C‑2 zoning; buyers to verify permitted uses and development requirements
- Existing buildings constructed in 1970 and conveyed as is
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
$173,680
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
6.09%
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%
$3,473,600
$3.5M
Cap Rate 7%
$2,481,143
$2.5M
Cap Rate 9%
$1,929,778
$1.9M
Market Conditions
NOI Build-Up for 11,700 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
$264.0K $22.56/SF
− Vacancy
−$15.8K −$1.35/SF
EGI
$248.1K $21.21/SF
− OpEx
−$74.4K −$6.36/SF
NOI
$173.7K $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%
$3,473,600
Cap Rate 7%
$2,481,143
Cap Rate 9%
$1,929,778
Alternative Uses
Best Use
Retail
$2.48M
$2.17M – $2.89M
NOI $173,680 @ 7.0% cap · market cap 6.09%
Second Best
Mixed Use
$768.5K
$672.4K – $896.6K
NOI $53,795 @ 7.0% cap · market cap 1.89%
Theoretical Best
Hotel Hospitality
$8.86M
$7.75M – $10.34M
NOI $620,217 @ 7.0% cap · market cap 21.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
782
Businesses Nearby
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 Retail 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?
Mixed-use property - C-2-zoned site with existing buildings and partially approved strip-center plans conveying with the sale.
Where is this mixed-use property located?
The property is located at 702 S Washington St Fredericksburg, TX.
What is the asking price?
The asking price for this property is $2,850,000.
What are key features of this property?
This property features: 11,700‑square‑foot mixed‑use property at 702 S Washington St; C‑2 zoning; buyers to verify permitted uses and development requirements; Existing buildings constructed in 1970 and conveyed as is
