Restaurant Building with Flexible
For Sale
$1,400,000
400 N Houston Avenue, Pottsboro, TX 75021
CommercialSale, Pottsboro, TX
Property Size9,646 SF
Lot Size0.42 Acres
Price / SF$145.14
Days on Market47
Property Features for 400 N Houston Avenue
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
Mixed, Office, Real Commercial
Security features
Security
Accessibility
Accessible Approach with Ramp
Subdivision
Otp Pottsboro
Lot features
Corner Lot
Directions
COME TO POTTSBORO. PROPERTY IS LOCATED AT 400 N. HOUSTON IN POTTSBORO, JUST IN BACK OF THE POLICE DEPT AND NEXT TO THE FIRE DEPARTMENT. * LOTS THAT ARE ARE AS FOLLOWS: * LOTS 6, 7, 8, 9, 10 & THE E. 20' OF LOT 5 (PROP ID 153572) * LOTS 11, 12, & 13 BLOCK 8 OTP POTTSBORO (PROP ID 153573)
Standard status
Active
APN
153572
Lot size
0.42 Acres
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating)
Cooling system
Ceiling Fan(s), Central Air, Electric
Water source
Public
Building Details
Year built
1990
Floors in Building
1
Number of units
1
Flooring type
Concrete, Tile, Vinyl, Laminate, Wood, Carpet
Building materials
Frame, MetalSiding, WoodSiding
Roof type
Asphalt
Listing Agency:
Keller Williams Realty DPR
(972) 732-6000
Listed By:
Stacey Davidson · License #694187
(214) 263-5419
Added: Jul 20
Changed: Sep 2
Last Checked: Sep 4 at 6:06AM
MLS# 21329115
Copyright © 2026 North Texas Real Estate Information Systems, Inc. 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 approximately 9,646-square-foot restaurant property occupies a 0.416-acre site and includes a dining area, bar, kitchen-ready space, and several additional rooms. The interior configuration can accommodate offices, storage, meeting areas, or expanded restaurant operations. The building was constructed in 1990 and incorporates frame, metal siding, and wood siding, with laminate, vinyl, concrete, wood, tile, and carpet flooring across the space.
Located at 400 N Houston Avenue in Pottsboro, Texas, the property has ample parking and an accessible approach with ramp. Public water and public sewer serve the site. Building systems include electric heating, central air, ceiling fans, and an asphalt roof. The existing layout also supports consideration for retail, office, event, or service-oriented operations where appropriate.
Located at 400 N Houston Avenue in Pottsboro, Texas, the property has ample parking and an accessible approach with ramp. Public water and public sewer serve the site. Building systems include electric heating, central air, ceiling fans, and an asphalt roof. The existing layout also supports consideration for retail, office, event, or service-oriented operations where appropriate.
Key Highlights
- Approximately 9,646 square feet on 0.416 acres
- Dining area, bar, and kitchen‑ready restaurant space
- Multiple rooms for offices, storage, or meetings
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
$50,249
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
3.59%
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%
$1,004,980
$1.0M
Cap Rate 7%
$717,843
$717.8K
Cap Rate 9%
$558,322
$558.3K
Market Conditions
NOI Build-Up for 9,646 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
$78.7K $8.16/SF
− Vacancy
−$6.9K −$0.72/SF
EGI
$71.8K $7.44/SF
− OpEx
−$21.5K −$2.23/SF
NOI
$50.2K $5.21/SF
Area
Grayson County, TX
Vacancy
8.80%
Lease Rate
$8.16 /SF/Yr
Expense Ratio
30.00%
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%
$1,004,980
Cap Rate 7%
$717,843
Cap Rate 9%
$558,322
Alternative Uses
Best Use
Specialty Retail
$2.45M
$2.14M – $2.86M
NOI $171,544 @ 7.0% cap · market cap 12.25%
Second Best
Industrial
$717.8K
$628.1K – $837.5K
NOI $50,249 @ 7.0% cap · market cap 3.59%
Theoretical Best
Hotel Hospitality
$4.95M
$4.33M – $5.77M
NOI $346,388 @ 7.0% cap · market cap 24.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
226
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 75021, TX
8,288
Population
3,871
Households
2.1
Avg Household Size
44
Median Age
17%
College-Educated
90%
High-School Grad
58.4 sq mi
ZIP Area
142
Density / Sq Mi
$67,159
Median Household Income
$36,955
Median Earnings
$900
Median Rent
$188,600
Median Home Value
Market
Vacancy Rate% for Industrial 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 - Converted restaurant facility with dining, bar, kitchen-ready space, and rooms for office or support functions.
Where is this conventional restaurant located?
The property is located at 400 N Houston Avenue Pottsboro, TX.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Approximately 9,646 square feet on 0.416 acres; Dining area, bar, and kitchen‑ready restaurant space; Multiple rooms for offices, storage, or meetings
