605 N Gray Street
Hospitality | 90 Keys
Marketing description
The City of Killeen's Downtown Plan identifies 605 N Gray Street as "The most important redevelopment target" within the downtown core — a designation first established in 2007 and reaffirmed as recently in 2022. No other private parcel in the city carries this distinction across as many consecutive planning cycles.
The property sits directly adjacent to the under-development Bell County Annex (±$15M), a permanent government facility expected to generate consistent daily foot traffic from 80-100 employees along with a projected 600-700 daily visitors. The planned future City Hall site lies within a 3–5 minute walk, further concentrating municipal activity and long-term civic investment in the immediate corridor.
The subject property is supported by one of the most complete public funding environments available in Texas — TIRZ #2 designation, Qualified Census Tract status, and LIHTC eligibility, along with an anticipated Opportunity Zone 2.0 designation effective January 2027 — providing a sophisticated buyer or developer with multiple tools to structure and fund the majority of development costs outside of traditional equity.
With in-place income, below-replacement-cost basis, and multi-decade public sector alignment behind it, 605 N Gray Street represents a rare opportunity to control an anchor parcel within the City of Killeen's downtown revitalization plan — at a price that reflects today's market value, not that of tomorrow.
Investment highlights
· #1 Redevelopment Priority in Killeen — Named in multiple city planning cycles (2007, 2020, 2022) as the single most important downtown redevelopment target
· Performing Asset at an Exceptional Basis — $236,162 in 2025 NOI | 92.2% Occupied | 90 Units | ~$59/SF
· Catty-Corner to $13-$15M Bell County Annex Development Project — Under active construction; 80–100 employees + up to projected 600-700 daily visitors
· Planned Future City Hall Site 0.2 Miles Away — 3–5 minute walk; compounding governmental demand corridor already underway
· Located Within TIRZ #2 (Projected Future Value Of $915,832,562 From Current $172M Base) — Includes funding allocated toward downtown redevelopment initiatives
· 70% of Development Fundable Through LIHTC 9% + 130% QCT Basis Boost
· Opportunity Zone 2.0 — Acquire Before the anticipated January 2027 Designation
· Federal 20% + Texas 25% Historic Tax Credits Eligible — Up to 45 cents recovered per rehab dollar
· Priced at ~$59/SF — Significantly below replacement cost
· One of the Largest Redevelopment Parcels Within TIRZ #2 "Downtown Revitalization" Boundary — Allows flexibility for mixed-use, phased, or institutional-scale projects
· Located Within City's Designated Downtown Revitalization Area — Included in broader municipal growth and redevelopment strategy
· Control of a Strategic Downtown Asset — One of the few remaining large-scale redevelopment opportunities within Killeen’s defined downtown growth corridor.
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