Operating Restaurant
For Sale
$449,000
1002 N Tower Road, Alamo, TX 78516
Commercial Sale, Alamo, TX
Property Size2,766 SF
Lot Size1.10 Acres
Price / SF$162.33
Days on Market98
Property Features for 1002 N Tower Road
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
10
Appliances
Electric Water Heater
Subdivision
Alamo Land & Sugar Co
Directions
Located on the corner of Tower Rd and 495 in Alamo
Standard status
Active
APN
A180000041000600
Size
2,766 SF
Lot size
1.10 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
3840
Utilities
Heating system
Central
Cooling system
Central Air
Building Details
Year built
1963
Floors in Building
2
Building materials
Wood Siding
Roof type
Shingle
Listing Agency:
Veale Properties
(956) 897-0070
Listed By:
Trisha Scott
(956) 329-9090
Added: Jun 3
Changed: Sep 5
Last Checked: Sep 8 at 3:06PM
MLS# 506235
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This operating restaurant property includes 2,766 square feet of improvements on approximately 1.10 acres. Constructed in 1963, the building has wood siding, a shingle roof, central heating, central air, and an electric water heater. The existing restaurant can support continued use while the substantial site area allows consideration of additional improvements or redevelopment, subject to applicable approvals.
Located at 1002 N Tower Road in Alamo, Texas, the property offers convenient access and is positioned in an area described as high traffic. Surrounding context includes residential neighborhoods, businesses, schools, and major thoroughfares. The site’s combination of an established restaurant building and sizable commercial parcel provides flexibility for an owner-operator, investor, or developer.
Located at 1002 N Tower Road in Alamo, Texas, the property offers convenient access and is positioned in an area described as high traffic. Surrounding context includes residential neighborhoods, businesses, schools, and major thoroughfares. The site’s combination of an established restaurant building and sizable commercial parcel provides flexibility for an owner-operator, investor, or developer.
Key Highlights
- Approximately 1.10‑acre commercial restaurant site
- Operating restaurant with 2,766 square feet of improvements
- Located at 1002 N Tower Road, Alamo, TX 78516
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
$40,142
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
8.94%
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%
$802,840
$802.8K
Cap Rate 7%
$573,457
$573.5K
Cap Rate 9%
$446,022
$446.0K
Market Conditions
NOI Build-Up for 2,766 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
$56.8K $20.52/SF
− Vacancy
−$3.2K −$1.17/SF
EGI
$53.5K $19.35/SF
− OpEx
−$13.4K −$4.84/SF
NOI
$40.1K $14.51/SF
Area
Hidalgo County, TX
Vacancy
5.70%
Lease Rate
$20.52 /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%
$802,840
Cap Rate 7%
$573,457
Cap Rate 9%
$446,022
Alternative Uses
Best Use
Specialty Retail
$573.5K
$501.8K – $669.0K
NOI $40,142 @ 7.0% cap · market cap 8.94%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$2.08M
$1.82M – $2.43M
NOI $145,837 @ 7.0% cap · market cap 32.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
97
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78516, TX
34,506
Population
12,469
Households
2.8
Avg Household Size
32
Median Age
12%
College-Educated
59%
High-School Grad
37.8 sq mi
ZIP Area
913
Density / Sq Mi
$51,547
Median Household Income
$26,908
Median Earnings
$743
Median Rent
$102,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Existing restaurant improvements offer a functional base for continued operation or future commercial redevelopment.
Where is this conventional restaurant located?
The property is located at 1002 N Tower Road Alamo, TX.
What is the asking price?
The asking price for this property is $449,000.
What are key features of this property?
This property features: Approximately 1.10‑acre commercial restaurant site; Operating restaurant with 2,766 square feet of improvements; Located at 1002 N Tower Road, Alamo, TX 78516
