Cocktail Lounge with Ship Channel
For Sale
$1,395,000
118 Cut Off Road, Port Aransas, TX 78373
COMMERCIAL - Port Aransas, TX
Property Size3,100 SF
Lot Size0.35 Acres
Price / SF$450
Days on Market133
Property Features for 118 Cut Off Road
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Mustang Island
Lot features
Zero Lot Line
View
Water
Standard status
Active
APN
548801420053
Size
3,100 SF
Lot size
0.35 Acres
Taxes and HOA fees
Tax Description
MUSTANG ISLAND BLK 142 LOT 5-B
Legal Description
MUSTANG ISLAND BLK 142 LOT 5-B
Utilities
Cooling system
Central Air
Amenities
bar
restrooms
office space
apartment
outdoor bar
ship channel views
workspace
Building Details
Year built
2001
Floors in Building
2
Building materials
AluminumSiding
Listing Agency:
Tarpon Realty
(361) 815-6784
Listed By:
Ryan Richter · License #0635792
(361) 815-6784
Added: Apr 3
Changed: Aug 4
Last Checked: Aug 13 at 8:06AM
MLS# 474211
Copyright © 2026 South Texas Multiple Listing Service, LLC. 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 3,100-square-foot commercial property occupies a 0.35-acre site and is configured for cocktail lounge operations. The first floor includes two bars, two customer restrooms, staff work areas, and utilities for a full kitchen. Upstairs are a third outdoor bar, additional customer bathrooms, office space, and a private apartment with a full bath. Central air conditioning and aluminum siding are in place, and the building was constructed in 2001.
The property is located at 118 Cut Off Road in Port Aransas, along a main thoroughfare and near city department buildings, the Civic Center, and the ferry landing. The upper level provides ship channel views, while the exterior includes shaded space and room for expansion. On-site parking accommodates over 22 vehicles.
The property is located at 118 Cut Off Road in Port Aransas, along a main thoroughfare and near city department buildings, the Civic Center, and the ferry landing. The upper level provides ship channel views, while the exterior includes shaded space and room for expansion. On-site parking accommodates over 22 vehicles.
Key Highlights
- 3,100‑square‑foot commercial building on a 0.35‑acre lot
- Three bars, including a third outdoor bar with ship channel views
- Private apartment with full bath, plus office space and customer restrooms
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
Lease Details
Single-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
629
Businesses Nearby
3k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 80%
Hotels & Casinos 20%
7-Eleven
Shops & Services
2,452 visits/mo
0.0 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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Bar & Pub - Two-level commercial building includes multiple bars, restrooms, office space, an apartment, and outdoor areas.
Where is this bar & pub located?
The property is located at 118 Cut Off Road 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: 3,100‑square‑foot commercial building on a 0.35‑acre lot; Three bars, including a third outdoor bar with ship channel views; Private apartment with full bath, plus office space and customer restrooms
