Auto/Retail
Property Type
21,000 sq ft
Area Size
1992
Year Built
Pep Boys
Former Business
69
Parking Spaces
1031 Exchange Ready
Parcel ID
R86869
Price
$3,000,000
Frontage Street Name
Dallas Dr
Frontage Length
188 feet
Lot Size
1.73 acres
Zoning
Commercial
Description
This 21,000 SF freestanding retail building on a 1.73-acre parcel anchors a high-velocity corridor in Denton’s explosive north Texas submarket, just minutes from I-35 and the booming campuses of the University of North Texas (UNT) and Texas Woman’s University (TWU). Priced at $3,000,000, it offers unparalleled visibility with 188 feet of direct frontage on South I-35 Service Road, 69 dedicated parking spaces, and flexible commercial zoning for seamless NNN lease-ups or owner-user pivots—from auto service relos to QSR, medical outparcel, or experiential retail. Built in 1992 with durable slab-on-grade construction and bayed interiors primed for quick re-fits, this asset taps into Denton’s 3.5% annual population surge to 169,843 residents in 2025, fueled by 61,000+ college students and a DFW metro influx that’s doubled county pop since 2000. With regional retail vacancy at a tight 4.8% and UNT enrollment topping 46,300, expect 6-8% cap rate stabilization on lease-up, backed by surging traffic (over 50,000 VPD combined on adjacent Hwy 77 and Loop 288) and robust consumer spend in a market where DFW retail absorption hit positive territory Q2 2025.
Investment Highlights
- College-Driven Resilience: UNT’s fall 2025 enrollment nears 47,000, propping retail demand in a market where student spend exceeds $1B annually—keeping vacancy dips minimal even amid economic wobbles.
- Traffic Dominance: Over 50,000 combined VPD on I-35/Hwy 77 corridors, plus Loop 288 proximity; this frontage commands 15-20% NOI premiums from visibility alone in a high-commute DFW feeder.
- Explosive Growth Engine: Denton’s pop climbs 3.5% yearly to 170K+ in 2025, with county at 1.07M—outpacing national averages and fueling 2-3% rent escalations in stable submarkets.
- Consumer Velocity: DFW metro retail sales volume surges amid 5%+ HH income growth; local demo skews young (median age 28), renters (60%+), and affluent, driving F&B/auto/entertainment categories.
- Value-Add Exit Ramp: Comps trade at $140-160/SF for similar auto footprints; project 12-15% equity build in 3 years via re-tenanting, with DFW retail cap rates compressing to 6%.
- Low-Risk Anchor: No flood/seismic exposure, NNN structure ready, and I-35 expansion boosting access—ideal for HNW diversification in Texas’ top growth MSA.
Features
High Visibility
Redevelopment Potential
NNN Opportunity
Demographics
- The property is positioned along Dallas Drive, a key commercial corridor in Denton with 188 feet of direct frontage on South I-35, offering exceptional visibility and access within the bustling DFW metroplex. This strategic location near Highway 77 and Loop 288 ensures strong exposure to regional commuters and steady consumer flow from surrounding businesses like auto services and retail outlets.
- Within a 1-mile trade area, the population base of nearly 12,400 residents is supported by over 5,600 households, anchored by established neighborhoods and community-serving retail in proximity to Denton’s vibrant university district.
- Expanding to a 3-mile radius, the trade area reaches more than 101,000 residents across nearly 39,600 households, providing a diverse consumer base and stable demand for service, retail, and medical users.
- At the 5-mile level, the population swells to more than 178,000 residents, reflecting Denton’s role as a key residential and employment hub within the Dallas-Fort Worth metroplex. Median household incomes in this area exceed $66,000, reinforcing purchasing power and tenant viability.
- Denton itself continues to grow as one of the most dynamic cities in Texas, benefiting from proximity to Dallas and Fort Worth, a strong university presence with over 60,000 students across the University of North Texas and Texas Woman’s University, and its identity as a cultural, educational, and sporting destination, with ongoing I-35 redevelopment projected to boost growth well into the future.