Round Rock Office Campus
For Sale
Contact for pricing
1514 / 1516 / 1518 Palm Valley Blvd, Round Rock, TX 78664
29,461 SF office campus on 5.46 acres for sale.
Property Size29,461 SF
Lot Size5.46 Acres
Price / SF$268.15
Days on Market3355
Property Features for 1514 / 1516 / 1518 Palm Valley Blvd
General Information
Standard status
Active
Size
29,461 SF
Lot size
5.46 Acres
Property subtype
Special Purpose
Lease Type
NNN
Building Details
Buildings
6
Listing Agency:
Don Quick & Associates Inc
(512) 255-3000
Listed By:
Darren Quick · License #TX 443913
Source:
Crexi
Added: Jun 16, 2017
Changed: Aug 12
Last Checked: Aug 21 at 8:50AM
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 Don Quick & Associates Inc
Investment Insights
Based on property information with market context.
Merrell Campus is a 29,461 SF office campus comprising 6 buildings on 5.46 acres. Situated in Round Rock, the campus is set back from HWY 79 in a scenic open space, less than two miles from Downtown Round Rock and minutes from The Kalahari Resort and Convention Center and Dell Diamond. The property is 100% leased and cash-flowing, presenting a stable investment opportunity with potential upside. The largest tenant has over five years remaining on their lease term, and no other leases are set to expire until Q4 2025. There is an opportunity to bring the tenants up to a market rate as leases expire, since current rents are below market. The campus offers potential for future redevelopment, with options to add a +/- 4,900 SF building or remove an existing building and add a 10,000 SF building in its place. The TXDOT construction project to improve safety and traffic flow on HWY 79 between IH 35 and A.W. Grimes is set to begin in 2027. The NOI is $450,161.40. The seller will guaranty a 12-month lease back on the 3,300 SF at 1514 Palm Valley, with the buyer responsible for remodel TI/lease commission. There is the ability to build +/- 4,900 SF office on vacant pad.
Key Highlights
- 100% leased office campus providing stable cash flow with $450,161.40 NOI.
- Significant upside potential through future redevelopment: ability to add a +/- 4,900 SF building or a 10,000 SF building.
- Over five years remaining on the lease term for the largest tenant; no other leases expire until Q4 2025.
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
$468,651
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
5.93%
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%
$9,373,020
$9.4M
Cap Rate 7%
$6,695,014
$6.7M
Cap Rate 9%
$5,207,233
$5.2M
Market Conditions
NOI Build-Up for 29,461 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
$883.8K $30.00/SF
− Vacancy
−$259.0K −$8.79/SF
EGI
$624.9K $21.21/SF
− OpEx
−$156.2K −$5.30/SF
NOI
$468.7K $15.91/SF
Area
Round Rock, TX
Vacancy
29.30%
Lease Rate
$30.00 /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%
$9,373,020
Cap Rate 7%
$6,695,014
Cap Rate 9%
$5,207,233
Alternative Uses
Best Use
Office B
$6.70M
$5.86M – $7.81M
NOI $468,651 @ 7.0% cap · market cap 5.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.33M
$8.17M – $10.89M
NOI $653,327 @ 7.0% cap · market cap 8.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
624
Businesses Nearby
Explore this area
Business Placement
Demographics for 78664, TX
60,287
Population
24,259
Households
2.5
Avg Household Size
34
Median Age
35%
College-Educated
90%
High-School Grad
16.6 sq mi
ZIP Area
3,632
Density / Sq Mi
$85,919
Median Household Income
$45,700
Median Earnings
$1,645
Median Rent
$317,400
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 - 29,461 SF office campus on 5.46 acres for sale.
Where is this office building located?
The property is located at 1514 / 1516 / 1518 Palm Valley Blvd Round Rock, TX.
What is the asking price?
The asking price for this property is $7,900,000.
What are key features of this property?
This property features: 100% leased office campus providing stable cash flow with $450,161.40 NOI.; Significant upside potential through future redevelopment: ability to add a +/- 4,900 SF building or a 10,000 SF building.; Over five years remaining on the lease term for the largest tenant; no other leases expire until Q4 2025.
