1 story · 14,000–16,000 SF
Medical condominium campus
Four to six owner-user suites of 2,000–4,500 SF. Sell-out at a new-product premium to the Gallagher Drive comparable. Best fit for local specialists who want control and equity.
Development concept
The park is already drawn. Underwrite it honestly.
Team Legacy’s deck is a three-building professional park — half medical, half office, 50% max coverage. The rent model below still has to clear Sherman construction costs. Owner-user suites and credit pads remain the paths that close.
From the deck
Three buildings. Suites 301–303.
301 Double medical · 302 Single medical · 303 Single office
1 story · 8,000–12,000 SF
Credit build-to-suit
Single-tenant NNN for dialysis, dental DSO, occupational medicine, or imaging. 10–15 year term, then sell as a net-lease investment. Aligns with TI / GlobalWafers workforce demand.
2 story · 20,000–24,000 SF
Multi-tenant MOB
Two-story 20,000–24,000 SF spec medical. Highest density, but construction cost versus Sherman rents makes this the hardest speculative path without cheap land or a pre-lease.
Underwrite it live
Rent and cost model
Defaults are a 14,000 SF single-story medical building — the density that actually fits 1.56 acres with 5/1,000 parking. Drag to test a two-story spec MOB or a cheaper land basis.
Gross SF14,000 SF
Efficiency88%
NNN asking rent$24.00/SF
Vacancy8%
Unreimbursed / management3% of EGI
Exit cap7.25%
Hard cost$320/SF
Land basis$1,000,000
Soft costs18%
Stabilized NNN
$263,865
NOI · 12,320 SF NRA
Income value @ 7.25%$3.64M
All-in cost$6.47M
Spec development gap$-2.83M
Condo sell-out @ $360/SF NRA
Gross potential$295,680
Effective gross$272,026
Hard cost$4,480,000
Soft cost$986,400
Sell-out$4,435,200
Condo margin vs. cost-$2,031,200
In Sherman, the spec NNN building rarely pencils at today's construction costs. The condo / owner-user and credit BTS paths are the ones that close the gap — especially if land is well inside the $1.41M/acre ceiling set by 815 E Pecan Grove.
Recommended program
- Three single-story buildings as drawn — medical and office plates, 50% max coverage, porch entries, HVAC to the rear.
- Sell suites, don’t spec the whole park. 301 double medical, 302 single medical, 303 single office, with barn-door flex. Price off Gallagher Drive ($273/SF existing) plus a new-product premium.
- Medical spec from the deck: 3–4 exam rooms, two restrooms, vinyl plank, medical-grade power, nurse station.
- Office spec: 10-ft ceilings, 8-ft doors, 5K can lights, conference option. Not another dermatology clinic — 815 already has that. Lean on Pecan Point for geriatric referrals.
- Confirm Sherman parking before locking coverage. The deck flags medical vs office parking as an open item.
Broker talking points
- You are selling Town Center convenience, not a hospital campus.
- Heritage Hospital (2028) is a west-side event. This lot captures the east/retail pole that already has an ER.
- TI/GlobalWafers is an occupational-medicine story as much as a rooftops story.
- Honest on cost: spec NNN at $320+/SF hard will not hit a 7-handle cap here. Structure the deal as sell-out or credit.
- National MOB occupancy is 92.7%. Sherman’s problem is supply of the right product, not demand for care.
Ask the briefing
Market analyst
Grounded in this survey. One question at a time — it spends real model quota.
Bring a practice or a partner
The desk is taking owner-user and JV conversations now.