Cocktail Lounge with Second-Floor
For Sale
$1,395,000
118 Cut Off Rd, Port Aransas, TX 78373
Multi-level bar, office, and apartment setup with outdoor bar space and parking for 22+ vehicles.
Property Size3,100 SF
Price / SF$450
Days on Market156
Property Features for 118 Cut Off Rd
General Information
Standard status
Active
Size
3,100 SF
Listing Agency:
Tarpon Realty
Listed By:
Ryan Richter · License #0635792
(361) 815-6784
Source:
Exprealty
Added: Apr 3
Changed: Sep 2
Last Checked: Sep 4 at 2:33PM
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 Tarpon Realty
Investment Insights
Based on property information with market context.
This property is currently configured as a cocktail lounge with multiple guest and staff areas. The first floor features a main bar with seating for more than 15 patrons, a second bar with seating for 8+, two well-appointed restrooms, and a back-of-house work area supported by utilities for a full kitchen. An additional outdoor bar provides a shaded space for guests.
The building sits on a large lot and is positioned on a main thoroughfare in Port Aransas, near city department buildings, the Civic Center, and the ferry landing at the entry to town. Parking accommodates more than 22 vehicles, and the outdoor area offers room to expand. A metal building on-site provides an open-slate option for a future business concept.
With both customer-facing space and functional support areas, this setup can fit a hospitality operator looking for an existing bar configuration, or a buyer planning to repurpose portions of the facility. The second floor includes office space and a private apartment with a full bath, which may appeal to owner-operators or tenants seeking on-site living. Nearby amenities and the ferry-area access can support businesses that benefit from regular town traffic.
The building sits on a large lot and is positioned on a main thoroughfare in Port Aransas, near city department buildings, the Civic Center, and the ferry landing at the entry to town. Parking accommodates more than 22 vehicles, and the outdoor area offers room to expand. A metal building on-site provides an open-slate option for a future business concept.
With both customer-facing space and functional support areas, this setup can fit a hospitality operator looking for an existing bar configuration, or a buyer planning to repurpose portions of the facility. The second floor includes office space and a private apartment with a full bath, which may appeal to owner-operators or tenants seeking on-site living. Nearby amenities and the ferry-area access can support businesses that benefit from regular town traffic.
Key Highlights
- Over 15,000 SF lot at 118 Cut Off Rd in Port Aransas with a metal building
- Multi‑level bar setup: first‑floor main bar seats 15+ patrons and includes 2 restrooms
- Second bar area seats 8+ and includes workspace for staff plus utilities needed for a full kitchen
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
$54,724
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
3.92%
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%
$1,094,480
$1.1M
Cap Rate 7%
$781,771
$781.8K
Cap Rate 9%
$608,044
$608.0K
Market Conditions
NOI Build-Up for 3,100 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
$77.4K $24.96/SF
− Vacancy
−$4.4K −$1.42/SF
EGI
$73.0K $23.54/SF
− OpEx
−$18.2K −$5.88/SF
NOI
$54.7K $17.65/SF
Area
Nueces County, TX
Vacancy
5.70%
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%
$1,094,480
Cap Rate 7%
$781,771
Cap Rate 9%
$608,044
Alternative Uses
Best Use
Specialty Retail
$781.8K
$684.1K – $912.1K
NOI $54,724 @ 7.0% cap · market cap 3.92%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$3.21M
$2.81M – $3.74M
NOI $224,515 @ 7.0% cap · market cap 16.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
659
Businesses Nearby
21k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 85%
Shops & Services 12%
Hotels & Casinos 3%
Family Center IGA Food Store
Groceries
18,059 visits/mo
0.5 miles
7-Eleven
Shops & Services
2,452 visits/mo
0.2 miles
Americas Best Value Inn
Hotels & Casinos
632 visits/mo
0.5 miles
Demographics for 78373, TX
3,134
Population
5,614
Households
0.6
Avg Household Size
56
Median Age
38%
College-Educated
95%
High-School Grad
18.8 sq mi
ZIP Area
167
Density / Sq Mi
$90,000
Median Household Income
$52,353
Median Earnings
$2,226
Median Rent
$518,500
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?
Bar & Pub - Multi-level bar, office, and apartment setup with outdoor bar space and parking for 22+ vehicles.
Where is this bar & pub located?
The property is located at 118 Cut Off Rd Port Aransas, TX.
What is the asking price?
The asking price for this property is $1,395,000.
What are key features of this property?
This property features: Over 15,000 SF lot at 118 Cut Off Rd in Port Aransas with a metal building; Multi‑level bar setup: first‑floor main bar seats 15+ patrons and includes 2 restrooms; Second bar area seats 8+ and includes workspace for staff plus utilities needed for a full kitchen
