Operating Conventional
For Sale
$449,000
1002 N Tower Rd, Alamo, TX 78516
The site combines an operating restaurant with space for additional improvements or future commercial redevelopment.
Property Size2,766 SF
Lot Size1.10 Acres
Price / SF$162.33
Days on Market72
Property Features for 1002 N Tower Rd
General Information
Standard status
Active
Size
2,766 SF
Lot size
1.10 Acres
Additional Details
Business Included
Yes
Land Use
commercial
Taxes and HOA fees
Annual Taxes
$3,840
Listing Agency:
Veale Properties
(956) 329-9090
Listed By:
Trisha Scott
(956) 329-9090
Source:
Exprealty
Added: Jun 3
Changed: Aug 11
Last Checked: Aug 12 at 12:09PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Veale Properties
Investment Insights
Based on property information with market context.
Located at 1002 N Tower Rd in Alamo, Texas, this approximately 1.10-acre property includes an established restaurant that is currently operating. The existing use can continue, while the site also accommodates consideration of expansion, additional improvements, or commercial redevelopment.
The property sits in a central Alamo setting surrounded by residential neighborhoods, businesses, and schools. Its visibility and access to major thoroughfares support a range of restaurant, owner-operator, and development-oriented plans, subject to applicable approvals.
The property sits in a central Alamo setting surrounded by residential neighborhoods, businesses, and schools. Its visibility and access to major thoroughfares support a range of restaurant, owner-operator, and development-oriented plans, subject to applicable approvals.
Key Highlights
- Approximately 1.10‑acre restaurant property
- Established restaurant currently operating
- Existing site supports continued restaurant use or expansion
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
75
Businesses Nearby
Balanced
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 - The site combines an operating restaurant with space for additional improvements or future commercial redevelopment.
Where is this conventional restaurant located?
The property is located at 1002 N Tower Rd 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 restaurant property; Established restaurant currently operating; Existing site supports continued restaurant use or expansion
