Restaurant with Bar
For Sale
$980,000
1100 Houston Avenue, McAllen, TX 78501
Commercial Sale, McAllen, TX
Property Size5,637 SF
Lot Size0.32 Acres
Price / SF$173.85
Days on Market93
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
Listed By:
Daniel A. Chapa
(956) 271-2600
Added: Jun 25
Changed: Sep 5
Last Checked: Sep 25 at 9:06PM
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 restaurant property at 1100 Houston Avenue contains 5,637 square feet within a 0.3214-acre site. The interior layout includes distinct dining sections and a bar area, providing separate spaces for food and beverage service. The building was constructed in 1990 with stucco exterior walls and a metal roof.
Central heating and central air conditioning serve the property, and an electric water heater is installed. The restaurant is offered for sale and is also available for lease.
Central heating and central air conditioning serve the property, and an electric water heater is installed. The restaurant is offered for sale and is also available for lease.
Key Highlights
- 5,637‑square‑foot restaurant building on a 0.3214‑acre site
- Separate dining areas plus a bar area
- Constructed in 1990 with stucco exterior and metal roof
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
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,447
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - The interior provides multiple dining zones alongside a dedicated bar area for varied guest seating and service.
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: 5,637‑square‑foot restaurant building on a 0.3214‑acre site; Separate dining areas plus a bar area; Constructed in 1990 with stucco exterior and metal roof
