Restaurant Building with
For Sale
$900,000
204 Tom Gill Road, Penitas, TX 78576
Commercial Sale, Penitas, TX
Property Size3,182 SF
Lot Size0.51 Acres
Price / SF$282.84
Days on Market190
Property Features for 204 Tom Gill Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C
Parking
20
Security features
Security Lighting
Appliances
Electric Water Heater
Subdivision
Bell #2
Directions
Get on Expressway 83 (US-83) at your closest access point. Head toward the interchange or intersection that connects to Tom Gill Road. Take the exit or turn off Expressway 83 onto Tom Gill Road (or the road that leads into Tom Gill). Once on Tom Gill Road, continue along it toward the Penitas area. Follow Tom Gill until you reach 204 Tom Gill Road. The property is listed in a commercial / restaurant space, about 3,182 sq ft. Realmo
Standard status
Active
APN
B215702000000300
Size
3,182 SF
Lot size
0.51 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
5492
Utilities
Heating system
Electric (Heating), Central, Propane (Heating)
Cooling system
Central Air, Electric
Building Details
Year built
2000
Floors in Building
1
Roof type
Flat
Listing Agency:
Keller Williams Realty RGV
(956) 928-1155
Listed By:
Lisa Salinas
(956) 358-4409
Added: Mar 13
Changed: Sep 14
Last Checked: Sep 18 at 12:06PM
MLS# 481320
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.
The property includes a 3,182-square-foot restaurant building constructed in 2000, with a layout supporting dine-in service, a bar and lounge area, and takeout operations. The building has a flat roof, central air, and central and electric heating, with propane heating also identified. An electric water heater serves the property.
Situated on 0.5071 acres at 204 Tom Gill Road in Penitas, Texas, the site offers on-site and shared parking. The surrounding corridor includes national retailers and major brand neighbors and is described as undergoing residential and commercial development. The property is zoned C.
Situated on 0.5071 acres at 204 Tom Gill Road in Penitas, Texas, the site offers on-site and shared parking. The surrounding corridor includes national retailers and major brand neighbors and is described as undergoing residential and commercial development. The property is zoned C.
Key Highlights
- 3,182‑square‑foot restaurant building on 0.5071 acres
- Layout supports dine‑in, bar and lounge, and takeout service
- On‑site and shared parking available
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
$46,180
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
5.13%
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%
$923,600
$923.6K
Cap Rate 7%
$659,714
$659.7K
Cap Rate 9%
$513,111
$513.1K
Market Conditions
NOI Build-Up for 3,182 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
$65.3K $20.52/SF
− Vacancy
−$3.7K −$1.17/SF
EGI
$61.6K $19.35/SF
− OpEx
−$15.4K −$4.84/SF
NOI
$46.2K $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%
$923,600
Cap Rate 7%
$659,714
Cap Rate 9%
$513,111
Alternative Uses
Best Use
Specialty Retail
$659.7K
$577.3K – $769.7K
NOI $46,180 @ 7.0% cap · market cap 5.13%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$2.40M
$2.10M – $2.80M
NOI $167,771 @ 7.0% cap · market cap 18.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
328
Businesses Nearby
275k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 39%
Superstores 33%
Shops & Services 26%
Electronics 2%
Walmart
Superstores
90,183 visits/mo
0.2 miles
Murphy USA
Shops & Services
30,577 visits/mo
0.4 miles
Chick-fil-A
Dining
24,192 visits/mo
0.4 miles
Dollar Tree
Shops & Services
22,230 visits/mo
0.2 miles
Starbucks
Dining
15,865 visits/mo
0.5 miles
Demographics for 78576, TX
13,901
Population
3,362
Households
4.1
Avg Household Size
25
Median Age
6%
College-Educated
53%
High-School Grad
58.2 sq mi
ZIP Area
239
Density / Sq Mi
$48,205
Median Household Income
$21,962
Median Earnings
$629
Median Rent
$116,600
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
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established restaurant property with dine-in, bar, lounge, takeout, and shared parking capabilities.
Where is this conventional restaurant located?
The property is located at 204 Tom Gill Road Penitas, TX.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 3,182‑square‑foot restaurant building on 0.5071 acres; Layout supports dine‑in, bar and lounge, and takeout service; On‑site and shared parking available
