Building Details

Year Built 1960

Buildings 1

Listing Agency: San Antonio Elite Realty Show Phone

Listed By: Jeff Smith · License #0430382 Show Phone

Source: Pioneerrealtypartners

Added: Sep 8 Changed: Sep 12 Last Checked: Sep 12 at 7:30AM

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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 San Antonio Elite Realty

Investment Insights

Based on property information with market context.

This mixed-use property offers nearly 2,700 SF with commercial and residential zoning. The layout includes two bathrooms, a spacious living area with a fireplace, a large kitchen equipped with appliances, and three bedrooms that can also function as offices. The existing configuration supports both residential occupancy and business use, with potential for an office or indoor showroom arrangement.

Positioned on US Highway 87, the property benefits from daily vehicle exposure and an existing sign structure with changeable panels. Paved parking is available across the front, with additional room behind the building for a driveway and expanded parking. Built in 1960, the property is also located near major roads providing access toward military bases and downtown.

Key Highlights

• Nearly 2,700 SF mixed‑use property
• Commercial and residential zoning
• Two bathrooms, large living area, fireplace, and kitchen with appliances

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

$26,730

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

5.94%

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%

$534,600 $534.6K

Cap Rate 7%

$381,857 $381.9K

Cap Rate 9%

$297,000 $297.0K

Market Conditions

NOI Build-Up for 2,700 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

$48.6K $18.00/SF

− Vacancy

−$5.8K −$2.16/SF

EGI

$42.8K $15.84/SF

− OpEx

−$16.0K −$5.94/SF

NOI

$26.7K $9.90/SF

Area

Bexar County, TX

Vacancy

12.00%

Lease Rate

$18.00 /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%

$534,600

Cap Rate 7%

$381,857

Cap Rate 9%

$297,000

Alternative Uses

Best Use

Office B

$621.4K

$543.7K – $725.0K (±1% cap)

NOI $43,497 @ 7.0% cap · market cap 9.67%

Second Best

Mixed Use

$381.9K

$334.1K – $445.5K (±1% cap)

NOI $26,730 @ 7.0% cap · market cap 5.94%

Theoretical Best

Office A

$730.8K

$639.4K – $852.6K (±1% cap)

NOI $51,154 @ 7.0% cap · market cap 11.37%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Live-work space

Suggested Use

Top Pick Building Supply Big Box & Wholesale Store Storage Facility Auto Parts Store Spa & Massage Center Nail Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

113

Businesses Nearby

Explore this area Business Placement

Demographics for 78263, TX

4,995

Population

1,630

Households

3.1

Avg Household Size

47

Median Age

29%

College-Educated

87%

High-School Grad

38.2 sq mi

ZIP Area

131

Density / Sq Mi

$81,793

Median Household Income

$44,676

Median Earnings

$1,142

Median Rent

$312,600

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Mixed-use property - Commercial and residential zoning supports a live-work setup with office, residential, or showroom possibilities.

Where is this mixed-use property located?

The property is located at 7285 Us Highway 87 E China Grove, TX.

What is the asking price?

The asking price for this property is $450,000.

What are key features of this property?

This property features: Nearly 2,700 SF mixed‑use property; Commercial and residential zoning; Two bathrooms, large living area, fireplace, and kitchen with appliances