Mixed-Use Property with Climate-Controlled
New
For Sale
$7,500,000
7914 S State Highway 16, Fredericksburg, TX 78624
A mix of commercial facilities, residential improvements and acreage fronts State Hwy 16 near Fredericksburg.
Property Size14,737 SF
Lot Size54.00 Acres
Price / SF$508.92
Days on Market3
Property Features for 7914 S State Highway 16
General Information
Standard status
Active
Size
14,737 SF
Lot size
54.00 Acres
Property subtype
Multi-Family
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Build-Out
1,500 SF
Building Details
Year Built
2003
Listing Agency:
TX SOLD, LLC
Listed By:
Homecity Real Estate
(210) 496-4949
Source:
Homecity
Added: Oct 1
Last Checked: Oct 2 at 8:05PM
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 TX SOLD, LLC
Investment Insights
Based on property information with market context.
This 54-acre mixed-use property near Fredericksburg includes several commercial buildings and multiple residences. The main structure offers approximately 9,000 SF of climate-controlled space, including about 1,500 SF configured for living or office use. A separate climate-controlled metal building contains approximately 6,000 SF and a plumbed restroom, with an attached building of about 1,200 SF. Another metal building adds approximately 1,800 SF of shop or storage area.
Residential improvements include a custom home of approximately 2,700 SF, two tiny homes and a stone house dating to circa 1866. Three wells are on the property; two currently serve the residences and other improvements. The property fronts State Hwy 16 at 7914 S State Highway 16 in Fredericksburg, Texas.
Residential improvements include a custom home of approximately 2,700 SF, two tiny homes and a stone house dating to circa 1866. Three wells are on the property; two currently serve the residences and other improvements. The property fronts State Hwy 16 at 7914 S State Highway 16 in Fredericksburg, Texas.
Key Highlights
- 54 acres along State Hwy 16 in Fredericksburg
- Main building has approximately 9,000 SF, including approximately 1,500 SF of living or office space
- Climate‑controlled 6,000 SF metal building with restroom, plus an attached 1,200 SF structure
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
$218,763
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
2.92%
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%
$4,375,260
$4.4M
Cap Rate 7%
$3,125,186
$3.1M
Cap Rate 9%
$2,430,700
$2.4M
Market Conditions
NOI Build-Up for 14,737 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
$332.5K $22.56/SF
− Vacancy
−$19.9K −$1.35/SF
EGI
$312.5K $21.21/SF
− OpEx
−$93.8K −$6.36/SF
NOI
$218.8K $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%
$4,375,260
Cap Rate 7%
$3,125,186
Cap Rate 9%
$2,430,700
Alternative Uses
Best Use
Retail
$3.13M
$2.73M – $3.65M
NOI $218,763 @ 7.0% cap · market cap 2.92%
Second Best
Warehouse
$1.32M
$1.15M – $1.54M
NOI $92,152 @ 7.0% cap · market cap 1.23%
Theoretical Best
Hotel Hospitality
$11.16M
$9.77M – $13.02M
NOI $781,208 @ 7.0% cap · market cap 10.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
5
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 Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - A mix of commercial facilities, residential improvements and acreage fronts State Hwy 16 near Fredericksburg.
Where is this mixed-use property located?
The property is located at 7914 S State Highway 16 Fredericksburg, TX.
What is the asking price?
The asking price for this property is $7,500,000.
What are key features of this property?
This property features: 54 acres along State Hwy 16 in Fredericksburg; Main building has approximately 9,000 SF, including approximately 1,500 SF of living or office space; Climate‑controlled 6,000 SF metal building with restroom, plus an attached 1,200 SF structure
