Historic Two-Story Office
New
For Sale
$599,000
774 Butternut Street, Abilene, TX 79602
Professional office layout includes multiple work areas, three half bathrooms, and a kitchen with pantry.
Property Size4,192 SF
Price / SF$142.89
Days on Market3
Property Features for 774 Butternut Street
General Information
Standard status
Active
Size
4,192 SF
Property subtype
Business
Building Details
Year Built
1925
Listing Agency:
McCullar Properties Group LLC
(325) 665-4037
Listed By:
Rene Jensen · License #0635496
(214) 532-6823
Source:
Lonestarluxuryrealty
Added: Aug 30
Changed: Aug 31
Last Checked: Aug 31 at 3:12PM
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 McCullar Properties Group LLC
Investment Insights
Based on property information with market context.
Built in 1925, this two-story office building combines historic architectural details with a practical professional layout. The 4,192-square-foot property contains eight office spaces, three half bathrooms, and a kitchen with a butler’s pantry. Original hardwood floors, abundant windows, and a large front porch add distinctive character to the building.
The property is listed on the Abilene Register of Historic Homes and includes dedicated paved parking. The parking area is identified as a separate parcel and must be added to the contract separately. The configuration provides a mix of individual work areas and adaptable rooms for office operations, meetings, or conferences.
The property is listed on the Abilene Register of Historic Homes and includes dedicated paved parking. The parking area is identified as a separate parcel and must be added to the contract separately. The configuration provides a mix of individual work areas and adaptable rooms for office operations, meetings, or conferences.
Key Highlights
- 4,192‑square‑foot two‑story office building constructed in 1925
- Eight office spaces arranged across two floors
- Three half bathrooms plus kitchen with butler’s pantry
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
$46,500
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
7.76%
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%
$930,000
$930.0K
Cap Rate 7%
$664,286
$664.3K
Cap Rate 9%
$516,667
$516.7K
Market Conditions
NOI Build-Up for 4,192 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
$72.9K $17.40/SF
− Vacancy
−$10.9K −$2.61/SF
EGI
$62.0K $14.79/SF
− OpEx
−$15.5K −$3.70/SF
NOI
$46.5K $11.09/SF
Area
Abilene, TX
Vacancy
15.00%
Lease Rate
$17.40 /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%
$930,000
Cap Rate 7%
$664,286
Cap Rate 9%
$516,667
Alternative Uses
Best Use
Office B
$664.3K
$581.3K – $775.0K
NOI $46,500 @ 7.0% cap · market cap 7.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$935.9K
$819.0K – $1.09M
NOI $65,516 @ 7.0% cap · market cap 10.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
948
Businesses Nearby
Explore this area
Business Placement
Demographics for 79602, TX
25,389
Population
11,127
Households
2.3
Avg Household Size
36
Median Age
34%
College-Educated
91%
High-School Grad
121.7 sq mi
ZIP Area
209
Density / Sq Mi
$84,845
Median Household Income
$39,044
Median Earnings
$1,123
Median Rent
$233,000
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?
Office building - Professional office layout includes multiple work areas, three half bathrooms, and a kitchen with pantry.
Where is this office building located?
The property is located at 774 Butternut Street Abilene, TX.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: 4,192‑square‑foot two‑story office building constructed in 1925; Eight office spaces arranged across two floors; Three half bathrooms plus kitchen with butler’s pantry
