Turn-Key Restaurant/Commercial Kitchen
For Sale
Contact for pricing
10978 Montwood Dr, El Paso, TX 79935
Fully renovated restaurant/commercial kitchen near Hanks High School.
Property Size1,400 SF
Price / SF$60.71
Days on Market147
Property Features for 10978 Montwood Dr
General Information
Standard status
Active
Size
1,400 SF
Class
B
Property subtype
Business for Sale
Zoning
C-1
Lease Type
NNN
Investment Type
Net Lease
Building Details
Year Renovated
2025
Stories
1
Units
5
Tenancy
Multi
Listing Agency:
Hiett & Associates
(915) 474-2587
Listed By:
Hilda Cisneros · License #630854
Source:
Crexi
Added: Mar 22
Changed: Aug 8
Last Checked: Aug 13 at 4:59PM
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 Hiett & Associates
Investment Insights
Based on property information with market context.
This is a fully renovated business located at 10978 Montwood Dr near Lee Trevino Dr, presenting a unique opportunity, especially given its proximity to Hanks High School. The commercial kitchen is fully equipped and optimized for high-volume service. The space has been completely renovated from top to bottom. The layout includes two updated restrooms and a private small office/storage space. The current footprint is perfect for a quick bite concept, ice cream parlor, boba tea shop, or specialty café. The property is located directly across from Hanks High School and just steps away from the Lee Trevino corridor, offering an incredible built-in customer base of students, faculty, and local commuters. The property size is 1400 square feet.
Key Highlights
- Fully renovated and equipped commercial kitchen ready for immediate operation.
- Prime location in a high‑traffic area of East El Paso.
- Located directly across from Hanks High School, providing a built‑in customer base.
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
$6,661
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
7.84%
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%
$133,220
$133.2K
Cap Rate 7%
$95,157
$95.2K
Cap Rate 9%
$74,011
$74.0K
Market Conditions
NOI Build-Up for 1,400 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
$10.6K $7.56/SF
− Vacancy
−$1.1K −$0.76/SF
EGI
$9.5K $6.80/SF
− OpEx
−$2.9K −$2.04/SF
NOI
$6.7K $4.76/SF
Area
El Paso, TX
Vacancy
10.10%
Lease Rate
$7.56 /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%
$133,220
Cap Rate 7%
$95,157
Cap Rate 9%
$74,011
Alternative Uses
Best Use
Specialty Retail
$298.1K
$260.8K – $347.8K
NOI $20,866 @ 7.0% cap · market cap 24.55%
Second Best
Industrial
$95.2K
$83.3K – $111.0K
NOI $6,661 @ 7.0% cap · market cap 7.84%
Theoretical Best
Office A
$351.2K
$307.3K – $409.8K
NOI $24,586 @ 7.0% cap · market cap 28.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
988
Businesses Nearby
344k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 34%
Apparel 25%
Shops & Services 20%
Groceries 17%
PetSmart
Shops & Services
34,625 visits/mo
0.3 miles
Food King
Groceries
32,760 visits/mo
0.5 miles
Nordstrom Rack
Apparel
30,087 visits/mo
0.3 miles
Cavender's Boot City
Apparel
26,561 visits/mo
0.3 miles
Total Wine & More
Groceries
25,251 visits/mo
0.3 miles
Demographics for 79935, TX
17,534
Population
7,165
Households
2.4
Avg Household Size
38
Median Age
28%
College-Educated
85%
High-School Grad
3.5 sq mi
ZIP Area
5,010
Density / Sq Mi
$65,000
Median Household Income
$32,377
Median Earnings
$1,070
Median Rent
$194,700
Median Home Value
Market
Vacancy Rate% for Retail in El Paso, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Fully renovated restaurant/commercial kitchen near Hanks High School.
Where is this conventional restaurant located?
The property is located at 10978 Montwood Dr El Paso, TX.
What is the asking price?
The asking price for this property is $85,000.
What are key features of this property?
This property features: Fully renovated and equipped commercial kitchen ready for immediate operation.; Prime location in a high‑traffic area of East El Paso.; Located directly across from Hanks High School, providing a built‑in customer base.
