NNN Retail Value-Add
For Sale
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850 West Eldorado Parkway, Little Elm, TX 75068
NNN retail shopping center with multiple tenants and annual rent escalations, featuring meaningful vacancy for lease-up.
Property Size16,420 SF
Price / SF$282.52
Days on Market57
Property Features for 850 West Eldorado Parkway
General Information
Standard status
Active
Size
16,420 SF
Property subtype
Retail
Occupancy
64%
Lease Type
NNN
Investment Type
Value Add
Net Operating Income
$199,438
Additional Details
Traffic Count
42,247 vehicles/day
Building Details
Year Built
2015
Buildings
1
Units
8
Tenancy
Multi
Listing Agency:
DUWEST
Listed By:
Will Walters · License #TX 596941
(214) 675-3665
Source:
Crexi
Added: Jul 13
Changed: Sep 2
Last Checked: Sep 2 at 3:16AM
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 DUWEST
Investment Insights
Based on property information with market context.
This value-add NNN retail property includes six established NNN tenants spanning dining, service, and daily-needs retail. The center offers diversified in-place cash flow supported by contractual annual rent escalations, alongside approximately 35.3% vacancy that creates opportunity for additional leasing as suites become available.
The property is located along the Eldorado Parkway corridor, with reported traffic of 42,247 vehicles per day. It sits in Little Elm, a fast-growing community surrounded by residential development.
With in-place rents reported as below-market (averaging $24.19 PSF NNN), the offering also highlights potential mark-to-market adjustment as leases roll and vacant suites are re-leased.
The property is located along the Eldorado Parkway corridor, with reported traffic of 42,247 vehicles per day. It sits in Little Elm, a fast-growing community surrounded by residential development.
With in-place rents reported as below-market (averaging $24.19 PSF NNN), the offering also highlights potential mark-to-market adjustment as leases roll and vacant suites are re-leased.
Key Highlights
- 2015‑built NNN retail shopping center with six established tenants across dining, service, and daily‑needs retail.
- 35.3% vacancy provides lease‑up potential to increase NOI by 96% through improved occupancy.
- Contractual annual rent escalations are in place for multiple tenants.
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
$272,546
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
5.88%
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%
$5,450,920
$5.5M
Cap Rate 7%
$3,893,514
$3.9M
Cap Rate 9%
$3,028,289
$3.0M
Market Conditions
NOI Build-Up for 16,420 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
$409.8K $24.96/SF
− Vacancy
−$20.5K −$1.25/SF
EGI
$389.4K $23.71/SF
− OpEx
−$116.8K −$7.11/SF
NOI
$272.5K $16.60/SF
Area
Denton County, TX
Vacancy
5.00%
Lease Rate
$24.96 /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%
$5,450,920
Cap Rate 7%
$3,893,514
Cap Rate 9%
$3,028,289
Alternative Uses
Best Use
Retail
$3.89M
$3.41M – $4.54M
NOI $272,546 @ 7.0% cap · market cap 5.88%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$229.62M
$200.92M – $267.89M
NOI $16,073,698 @ 7.0% cap · market cap 346.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
42,247 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
211
Businesses Nearby
31k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 68%
Dining 32%
7-Eleven
Shops & Services
13,614 visits/mo
0.2 miles
Exxon
Shops & Services
7,250 visits/mo
0.2 miles
Wingstop
Dining
5,086 visits/mo
0.2 miles
Los Jalapenos
Dining
2,625 visits/mo
0.4 miles
Domino's Pizza
Dining
2,287 visits/mo
0.2 miles
Demographics for 75068, TX
66,248
Population
23,499
Households
2.8
Avg Household Size
34
Median Age
43%
College-Educated
92%
High-School Grad
27.9 sq mi
ZIP Area
2,374
Density / Sq Mi
$126,341
Median Household Income
$66,559
Median Earnings
$2,161
Median Rent
$386,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - NNN retail shopping center with multiple tenants and annual rent escalations, featuring meaningful vacancy for lease-up.
Where is this shopping center located?
The property is located at 850 West Eldorado Parkway Little Elm, TX.
What is the asking price?
The asking price for this property is $4,639,000.
What are key features of this property?
This property features: 2015‑built NNN retail shopping center with six established tenants across dining, service, and daily‑needs retail.; 35.3% vacancy provides lease‑up potential to increase NOI by 96% through improved occupancy.; Contractual annual rent escalations are in place for multiple tenants.
