Versatile Commercial/Flex Space in
For Sale
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537 S Kealy Ave, Lewisville, TX 75057
5,500 SF corner commercial/flex space near Main Street.
Property Size5,500 SF
Price / SF$213.64
Days on Market711
Property Features for 537 S Kealy Ave
General Information
Standard status
Active
Size
5,500 SF
Property subtype
Industrial, Mixed Use, Office, Retail
Zoning
LI
Listing Agency:
The Ambrose Group
Listed By:
Brandon Brooks · License #TX- 0639787
Source:
Crexi
Added: Aug 29, 2024
Changed: Aug 8
Last Checked: May 12 at 10:08PM
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 Ambrose Group
Investment Insights
Based on property information with market context.
This 5,500 SF corner commercial/flex space is located just blocks from Main Street in Old Town Lewisville. Situated in an Opportunity Zone, the property benefits from excellent visibility and strong traffic counts. The flexible layout includes approximately 2,900 SF of finished office/showroom space and a large garage area with a front-facing overhead door. Secure gated parking is available for 10–12 vehicles, plus additional fenced yard storage. Build-to-suit options are available, including additional office space, HVAC installation, and custom finishes. The property offers existing short-term income with the option for a sale-leaseback. It is ideally suited for contractors, service-based businesses, or local operators seeking ownership in a growing, low-competition area. Attractive financing is available for qualified buyers, subject to credit approval, with a 20-year amortization and a 5-year balloon. Private financing is available without traditional bank approval, and a flexible transition period is offered. The prominent corner location provides easy access and strong roadway exposure, with potential long-term tax benefits due to its location within an Opportunity Zone.
Key Highlights
- 5,500 SF corner commercial/flex space in Old Town Lewisville, ideal for contractors, service providers, or owner‑users.
- Located in an Opportunity Zone offering potential long‑term tax benefits.
- Attractive private financing available with a 20‑year amortization and 5‑year balloon; no traditional bank approval required.
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
$101,822
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
8.67%
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%
$2,036,440
$2.0M
Cap Rate 7%
$1,454,600
$1.5M
Cap Rate 9%
$1,131,356
$1.1M
Market Conditions
NOI Build-Up for 5,500 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
$181.5K $33.00/SF
− Vacancy
−$45.7K −$8.32/SF
EGI
$135.8K $24.68/SF
− OpEx
−$33.9K −$6.17/SF
NOI
$101.8K $18.51/SF
Area
Lewisville, TX
Vacancy
25.20%
Lease Rate
$33.00 /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%
$2,036,440
Cap Rate 7%
$1,454,600
Cap Rate 9%
$1,131,356
Alternative Uses
Best Use
Office B
$1.45M
$1.27M – $1.70M
NOI $101,822 @ 7.0% cap · market cap 8.67%
Second Best
Mixed Use
$1.30M
$1.13M – $1.51M
NOI $90,750 @ 7.0% cap · market cap 7.72%
Theoretical Best
Office A
$1.83M
$1.60M – $2.14M
NOI $128,357 @ 7.0% cap · market cap 10.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,300
Businesses Nearby
Explore this area
Business Placement
Demographics for 75057, TX
16,001
Population
7,171
Households
2.2
Avg Household Size
31
Median Age
29%
College-Educated
83%
High-School Grad
13.3 sq mi
ZIP Area
1,203
Density / Sq Mi
$76,128
Median Household Income
$43,253
Median Earnings
$1,589
Median Rent
$208,500
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?
Mixed-use property - 5,500 SF corner commercial/flex space near Main Street.
Where is this mixed-use property located?
The property is located at 537 S Kealy Ave Lewisville, TX.
What is the asking price?
The asking price for this property is $1,175,000.
What are key features of this property?
This property features: 5,500 SF corner commercial/flex space in Old Town Lewisville, ideal for contractors, service providers, or owner‑users.; Located in an Opportunity Zone offering potential long‑term tax benefits.; Attractive private financing available with a 20‑year amortization and 5‑year balloon; no traditional bank approval required.
