Redevelopment Land with Major Road
For Sale
$1,750,000
870 N Mayhill Road, Denton, TX 76208
Redevelopment site along N Mayhill Rd offering strong frontage and visibility, with Future Land Use designated Moderate Residential.
Property Size4,800 SF
Lot Size3.50 Acres
Price / SF$388.89
Days on Market19
Property Features for 870 N Mayhill Road
General Information
Standard status
Active
Size
4,800 SF
Lot size
3.50 Acres
Property subtype
Commercial Lots & Land
Building Details
Building Size
4,800 SF
Year Built
2009
Stories
1
Units
4
Listing Agency:
The Michael Group Real Estate
(469) 363-0209
Listed By:
Charles Horton · License #0546099
(469) 363-0209
Source:
Fullhouserealtytx
Added: Jul 21
Changed: Aug 8
Last Checked: Jul 21 at 9:36AM
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 The Michael Group Real Estate
Investment Insights
Based on property information with market context.
Redevelopment land totaling approximately 3.5 acres is located along N Mayhill Rd, offering substantial frontage, visibility, and accessibility to support future development. The City of Denton Future Land Use Map designates the site as Moderate Residential, which may allow for future development concepts such as townhomes, duplexes, cottage developments, small-lot residential, or multifamily formats, subject to City approvals.
The property is positioned within Denton’s expanding growth corridor with surrounding residential and commercial growth referenced in the available remarks. Because future development would require approvals, the buyer is responsible for due diligence, including zoning verification, entitlements, development approvals, utility availability, density allowances, and any required zoning changes or site plan approvals with the City of Denton.
The property is positioned within Denton’s expanding growth corridor with surrounding residential and commercial growth referenced in the available remarks. Because future development would require approvals, the buyer is responsible for due diligence, including zoning verification, entitlements, development approvals, utility availability, density allowances, and any required zoning changes or site plan approvals with the City of Denton.
Key Highlights
- 3.5‑acre redevelopment site along heavily traveled N Mayhill Rd
- Strong frontage and accessibility along N Mayhill Rd
- City of Denton Future Land Use Map designates the site as Moderate Residential
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
$52,164
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
2.98%
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%
$1,043,280
$1.0M
Cap Rate 7%
$745,200
$745.2K
Cap Rate 9%
$579,600
$579.6K
Market Conditions
NOI Build-Up for 4,500 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
$81.0K $18.00/SF
− Vacancy
−$6.5K −$1.44/SF
EGI
$74.5K $16.56/SF
− OpEx
−$22.4K −$4.97/SF
NOI
$52.2K $11.59/SF
Area
Denton, TX
Vacancy
8.00%
Lease Rate
$18.00 /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%
$1,043,280
Cap Rate 7%
$745,200
Cap Rate 9%
$579,600
Alternative Uses
Best Use
Self Storage
$745.2K
$652.1K – $869.4K
NOI $52,164 @ 7.0% cap · market cap 2.98%
Second Best
Warehouse
$447.0K
$391.2K – $521.5K
NOI $31,292 @ 7.0% cap · market cap 1.79%
Theoretical Best
Office A
$1.41M
$1.23M – $1.64M
NOI $98,416 @ 7.0% cap · market cap 5.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
156
Businesses Nearby
Explore this area
Business Placement
Demographics for 76208, TX
27,084
Population
9,440
Households
2.9
Avg Household Size
35
Median Age
35%
College-Educated
90%
High-School Grad
27.4 sq mi
ZIP Area
988
Density / Sq Mi
$90,833
Median Household Income
$46,843
Median Earnings
$1,591
Median Rent
$358,000
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?
Residential land & home lot - Redevelopment site along N Mayhill Rd offering strong frontage and visibility, with Future Land Use designated Moderate Residential.
Where is this residential land & home lot located?
The property is located at 870 N Mayhill Road Denton, TX.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: 3.5‑acre redevelopment site along heavily traveled N Mayhill Rd; Strong frontage and accessibility along N Mayhill Rd; City of Denton Future Land Use Map designates the site as Moderate Residential
