Restaurant Building with
For Sale
$980,000
1100 Houston Avenue, McAllen, TX 78501
COMMERCIAL - McAllen, TX
Property Size5,637 SF
Lot Size0.32 Acres
Price / SF$173.85
Days on Market48
Property Features for 1100 Houston Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
25
Appliances
Electric Water Heater
Subdivision
Mcallen Addition
Lot features
Downtown
Directions
From Expressway 83, North on 10th Street, West on Houston approx 2 blocks, property located on Corner.
Standard status
Active
APN
M195000063000100
Size
5,637 SF
Lot size
0.32 Acres
Taxes and HOA fees
Tax Year
2021
Tax Annual Amount
7895
Utilities
Heating system
Central
Cooling system
Central Air
Building Details
Year built
1990
Floors in Building
1
Building materials
Stucco
Roof type
Metal
Listing Agency:
Dillard and Chapa Real Estate
(956) 271-2600
Listed By:
Daniel A. Chapa
(956) 271-2600
Added: Jun 25
Changed: Aug 4
Last Checked: Aug 11 at 11:06PM
MLS# 508091
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.
This property is a large restaurant building totaling approximately 5,637 square feet. The floor design includes separate dining areas plus a bar area, providing a straightforward layout for food service and guest flow. The offering is available for sale, and it is also available for lease (MLS# 482327).
Located at 1100 Houston Avenue in McAllen, Texas 78501, the site sits on a lot of approximately 0.3214 acres in Hidalgo County.
For operators, the existing restaurant configuration—multiple dining areas together with a dedicated bar space—can support a range of full-service concepts that need distinct guest zones while keeping service functions consolidated. The size and built-in layout may appeal to groups looking for an established restaurant footprint rather than starting from scratch. For buyers and brokers, it also presents a flexible acquisition structure given the availability under both sale and lease terms.
Located at 1100 Houston Avenue in McAllen, Texas 78501, the site sits on a lot of approximately 0.3214 acres in Hidalgo County.
For operators, the existing restaurant configuration—multiple dining areas together with a dedicated bar space—can support a range of full-service concepts that need distinct guest zones while keeping service functions consolidated. The size and built-in layout may appeal to groups looking for an established restaurant footprint rather than starting from scratch. For buyers and brokers, it also presents a flexible acquisition structure given the availability under both sale and lease terms.
Key Highlights
- Large restaurant space available with approx. 5,637 SF
- Floor plan includes separate dining areas and bar areas
- Restaurant building features central heating and central air
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
$86,206
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
8.80%
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%
$1,724,120
$1.7M
Cap Rate 7%
$1,231,514
$1.2M
Cap Rate 9%
$957,844
$957.8K
Market Conditions
NOI Build-Up for 5,637 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
$121.8K $21.60/SF
− Vacancy
−$6.8K −$1.21/SF
EGI
$114.9K $20.39/SF
− OpEx
−$28.7K −$5.10/SF
NOI
$86.2K $15.29/SF
Area
McAllen, TX
Vacancy
5.60%
Lease Rate
$21.60 /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%
$1,724,120
Cap Rate 7%
$1,231,514
Cap Rate 9%
$957,844
Alternative Uses
Best Use
Specialty Retail
$1.23M
$1.08M – $1.44M
NOI $86,206 @ 7.0% cap · market cap 8.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.53M
$1.34M – $1.79M
NOI $107,148 @ 7.0% cap · market cap 10.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
568
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
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 - Freestanding restaurant space with separate dining areas and a dedicated bar, sized for a large tenant footprint.
Where is this conventional restaurant located?
The property is located at 1100 Houston Avenue McAllen, TX.
What is the asking price?
The asking price for this property is $980,000.
What are key features of this property?
This property features: Large restaurant space available with approx. 5,637 SF; Floor plan includes separate dining areas and bar areas; Restaurant building features central heating and central air
