Historic Hippodrome Retail
For Sale
Contact for pricing
Pending
724 Austin Ave Suite B, Waco, TX 76701
Retail space in downtown Waco, near Baylor University.
Property Size13,312 SF
Days on Market160
Property Features for 724 Austin Ave Suite B
General Information
Standard status
Pending
Size
13,312 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Net Operating Income
$386,604
Building Details
Year Built
2016
Stories
3
Units
5
Tenancy
Multi
Listing Agency:
STRIVE Commercial Real Estate Advisors
Listed By:
Jennifer Pierson · License #424317-B
Source:
Crexi
Added: Mar 24
Changed: Aug 17
Last Checked: Aug 28 at 8:23PM
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 STRIVE Commercial Real Estate Advisors
Investment Insights
Based on property information with market context.
This retail component of the historic Hippodrome offers 13,312 square feet of space. Anchored by Encore, a local restaurant, bar, and entertainment venue, the property also includes rooftop retail. The location benefits from built-in foot traffic driven by theater events, performances, film screenings, and private functions. Situated in the heart of downtown Waco's walkable district, the property provides easy access to restaurants, hotels, nightlife, and year-round tourism. Downtown Waco continues to experience strong visitation and redevelopment momentum, anchored by the historic Magnolia Market. The property benefits from long-term triple net (NNN) leases, allowing investors the ability to passively manage the asset in a tight retail market with below-market rents. The Historic Hippodrome is located less than 2 miles from Baylor University, which has over 15,000 students enrolled.
Key Highlights
- Anchored by Encore: A popular local restaurant, bar, and entertainment venue driving consistent foot traffic.
- Long Term Triple Net (NNN) Leases: Offers passive income management for investors.
- Experiential Retail Synergy with Historic Theater: Benefits from built‑in foot traffic from theater events and performances.
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
$155,123
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
2.81%
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%
$3,102,460
$3.1M
Cap Rate 7%
$2,216,043
$2.2M
Cap Rate 9%
$1,723,589
$1.7M
Market Conditions
NOI Build-Up for 13,312 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
$247.6K $18.60/SF
− Vacancy
−$26.0K −$1.95/SF
EGI
$221.6K $16.65/SF
− OpEx
−$66.5K −$4.99/SF
NOI
$155.1K $11.65/SF
Area
Waco, TX
Vacancy
10.50%
Lease Rate
$18.60 /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%
$3,102,460
Cap Rate 7%
$2,216,043
Cap Rate 9%
$1,723,589
Alternative Uses
Best Use
Retail
$2.22M
$1.94M – $2.59M
NOI $155,123 @ 7.0% cap · market cap 2.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.51M
$3.07M – $4.10M
NOI $245,846 @ 7.0% cap · market cap 4.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,042
Businesses Nearby
66k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 58%
Shops & Services 24%
Hotels & Casinos 15%
Home Improvements & Furnishings 3%
CAVA
Dining
16,291 visits/mo
0.5 miles
SONIC Drive In
Dining
14,663 visits/mo
0.5 miles
Wells Fargo
Shops & Services
9,047 visits/mo
0.3 miles
Hotel Indigo Waco - Baylor
Hotels & Casinos
6,248 visits/mo
0.4 miles
Jersey Mike's Subs
Dining
5,197 visits/mo
0.5 miles
Demographics for 76701, TX
1,674
Population
1,029
Households
1.6
Avg Household Size
29
Median Age
32%
College-Educated
92%
High-School Grad
1.1 sq mi
ZIP Area
1,522
Density / Sq Mi
$24,593
Median Household Income
$21,897
Median Earnings
$1,008
Median Rent
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail space in downtown Waco, near Baylor University.
Where is this retail space located?
The property is located at 724 Austin Ave Suite B Waco, TX.
What is the asking price?
The asking price for this property is $5,525,000.
What are key features of this property?
This property features: Anchored by Encore: A popular local restaurant, bar, and entertainment venue driving consistent foot traffic.; Long Term Triple Net (NNN) Leases: Offers passive income management for investors.; Experiential Retail Synergy with Historic Theater: Benefits from built‑in foot traffic from theater events and performances.
