Renovated Drive-Through
For Sale
$549,000
900 N Broughton Street, Sherman, TX 75090
CommercialSale, Sherman, TX
Property Size1,452 SF
Lot Size0.39 Acres
Price / SF$378.10
Days on Market50
Property Features for 900 N Broughton Street
General Information
Property type
Commercial Sale
Property subtype
Retail
Zoning description
second generation restaurant
Subdivision
Boyer & Lucas Add
Directions
refer to GPS
Standard status
Active
APN
159965
Lot size
0.39 Acres
Taxes and HOA fees
Tax Description
BOYER & LUCAS ADDN, LOT 1 THRU 3, & LAND WEST
Legal Description
BOYER & LUCAS ADDN, LOT 1 THRU 3, & LAND WEST
Utilities
Sewer type
Public Sewer
Heating system
Central, Natural Gas
Cooling system
Central Air, Electric
Water source
Public
Amenities
storage house
Building Details
Year built
1988
Floors in Building
1
Flooring type
Tile, Vinyl
Building materials
Brick
Roof type
Shingle
Listing Agency:
Opportune Realty
(214) 662-1941
Listed By:
Ari Besefki · License #TX-0655788
(214) 662-1941
Added: Jul 11
Changed: Aug 21
Last Checked: Aug 29 at 5:06PM
MLS# 21192586
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 freestanding, second-generation restaurant at 900 N Broughton Street includes a drive-through, patio, and storage house within a 1,452-square-foot building. The property occupies 0.39 acres and features exterior brick construction, tile and vinyl flooring, central HVAC, natural-gas heating, and electric cooling.
Renovation work extended to the building’s core systems, including plumbing, electrical panels, HVAC equipment, and the interior structure. Public water and public sewer serve the property. Built in 1988, the restaurant is located a few blocks from Austin College in Sherman, Texas.
Renovation work extended to the building’s core systems, including plumbing, electrical panels, HVAC equipment, and the interior structure. Public water and public sewer serve the property. Built in 1988, the restaurant is located a few blocks from Austin College in Sherman, Texas.
Key Highlights
- 1,452‑square‑foot freestanding restaurant with drive‑through
- 0.39‑acre parcel with patio and storage house
- Renovated to the studs with updated HVAC, plumbing, and electrical panels
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
$25,822
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
4.70%
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%
$516,440
$516.4K
Cap Rate 7%
$368,886
$368.9K
Cap Rate 9%
$286,911
$286.9K
Market Conditions
NOI Build-Up for 1,452 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
$36.2K $24.96/SF
− Vacancy
−$1.8K −$1.25/SF
EGI
$34.4K $23.71/SF
− OpEx
−$8.6K −$5.93/SF
NOI
$25.8K $17.78/SF
Area
Grayson County, TX
Vacancy
5.00%
Lease Rate
$24.96 /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%
$516,440
Cap Rate 7%
$368,886
Cap Rate 9%
$286,911
Alternative Uses
Best Use
Specialty Retail
$368.9K
$322.8K – $430.4K
NOI $25,822 @ 7.0% cap · market cap 4.70%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$744.9K
$651.8K – $869.0K
NOI $52,141 @ 7.0% cap · market cap 9.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
899
Businesses Nearby
Explore this area
Business Placement
Demographics for 75090, TX
25,002
Population
9,602
Households
2.6
Avg Household Size
35
Median Age
15%
College-Educated
84%
High-School Grad
78.5 sq mi
ZIP Area
318
Density / Sq Mi
$58,586
Median Household Income
$36,230
Median Earnings
$1,111
Median Rent
$163,500
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Freestanding restaurant with patio, storage, and extensively updated building systems.
Where is this drive through restaurant located?
The property is located at 900 N Broughton Street Sherman, TX.
What is the asking price?
The asking price for this property is $549,000.
What are key features of this property?
This property features: 1,452‑square‑foot freestanding restaurant with drive‑through; 0.39‑acre parcel with patio and storage house; Renovated to the studs with updated HVAC, plumbing, and electrical panels
