Leased Restaurant with
For Sale
$975,000
1037 W Duranta Avenue, Alamo, TX 78516
Commercial Sale, Alamo, TX
Property Size4,622 SF
Lot Size0.52 Acres
Price / SF$210.95
Days on Market87
Property Features for 1037 W Duranta Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CO
Parking
30
Appliances
Electric Water Heater
Subdivision
Alamo Original Townsite
Lot features
Downtown
Directions
right off Alamo Rd and just one block from the expressway. Across the Street from Walgreens.
Standard status
Active
APN
A210000003000200
Size
4,622 SF
Lot size
0.52 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
11446
Utilities
Heating system
Central
Cooling system
Central Air
Building Details
Year built
2005
Floors in Building
1
Building materials
Stucco
Roof type
Metal
Listing Agency:
RE/MAX Platinum · RE/MAX International
(956) 668-8555
Listed By:
Marco Britschka
(956) 313-8511
Added: Jun 24
Changed: Sep 5
Last Checked: Sep 18 at 6:06AM
MLS# 493244
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 commercial property combines a fully leased restaurant with drive-through capability and a retail store. Three food trucks are included in the sale, with two currently leased. The improvements were built in 2005 and feature stucco construction, a metal roof, central heating, central air, and an electric water heater. The property is zoned CO.
Located at 1037 W Duranta Avenue in Alamo, the site is positioned just off Alamo Rd and one block from the expressway. The sale encompasses three properties identified in the legal descriptions, supporting the restaurant, retail, and food-truck components within the offering.
Located at 1037 W Duranta Avenue in Alamo, the site is positioned just off Alamo Rd and one block from the expressway. The sale encompasses three properties identified in the legal descriptions, supporting the restaurant, retail, and food-truck components within the offering.
Key Highlights
- Fully leased restaurant with drive‑through capability
- Retail store included in the offering
- Three food trucks convey with the sale
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
$67,078
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
6.88%
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%
$1,341,560
$1.3M
Cap Rate 7%
$958,257
$958.3K
Cap Rate 9%
$745,311
$745.3K
Market Conditions
NOI Build-Up for 4,622 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
$94.8K $20.52/SF
− Vacancy
−$5.4K −$1.17/SF
EGI
$89.4K $19.35/SF
− OpEx
−$22.4K −$4.84/SF
NOI
$67.1K $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%
$1,341,560
Cap Rate 7%
$958,257
Cap Rate 9%
$745,311
Alternative Uses
Best Use
Specialty Retail
$958.3K
$838.5K – $1.12M
NOI $67,078 @ 7.0% cap · market cap 6.88%
Second Best
Retail
$891.5K
$780.1K – $1.04M
NOI $62,407 @ 7.0% cap · market cap 6.40%
Theoretical Best
Hotel Hospitality
$3.48M
$3.05M – $4.06M
NOI $243,695 @ 7.0% cap · market cap 24.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
100%
Occupancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
779
Businesses Nearby
277k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 48%
Groceries 31%
Shops & Services 15%
Apparel 4%
H-E-B
Groceries
84,926 visits/mo
0.3 miles
McDonald's
Dining
47,070 visits/mo
0.2 miles
Whataburger
Dining
31,374 visits/mo
0.1 miles
Dutch Bros. Coffee
Dining
15,597 visits/mo
0.1 miles
Church's Chicken
Dining
12,716 visits/mo
0.1 miles
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant and retail improvements include a drive-through, three conveying food trucks, and central heating and cooling.
Where is this conventional restaurant located?
The property is located at 1037 W Duranta Avenue Alamo, TX.
What is the asking price?
The asking price for this property is $975,000.
What are key features of this property?
This property features: Fully leased restaurant with drive‑through capability; Retail store included in the offering; Three food trucks convey with the sale
