Turnkey Restaurant Space For
For Sale
$1,650,000
5320 Hollister St, Houston, TX 77040
Established restaurant property in Northwest Houston with high-visibility frontage.
Property Size7,344 SF
Days on Market275
Property Features for 5320 Hollister St
General Information
Standard status
Active
Size
7,344 SF
Property subtype
Retail
Building Details
Building Size
7,344 SF
Year Built
2007
Listing Agency:
The Commercial Professionals
(713) 614-2670
Listed By:
Adam Olsen, CCIM · License #TX #0642075
Source:
Thecommercialprofessionals
Added: Nov 25, 2025
Changed: Aug 26
Last Checked: Aug 26 at 2:24PM
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 The Commercial Professionals
Investment Insights
Based on property information with market context.
This established restaurant property is located in Northwest Houston along Hollister Street near U.S. 290. The property benefits from exceptional exposure and accessibility in a high-growth corridor. The site is minutes from Beltway 8 and I-610, with Hollister averaging over 10,000 vehicles per day and U.S. 290 seeing approximately 200,000+ vehicles per day. The location draws steady customer traffic from local patrons and regional commuters, surrounded by dense residential neighborhoods, industrial employers, and major national retailers. The property features a complete commercial kitchen setup with prep areas, service counters, and ample on-site parking to accommodate dine-in, takeout, and catering operations. Its functional layout supports high-volume service and quick turnover, making it an excellent fit for fast-casual, dine-in, or franchise users looking to expand in Houston. The existing business conveys with the sale, offering immediate income potential or a seamless path to rebrand under a new concept. The property is perfectly positioned for continued success, whether maintained as a BBQ operation or transitioned into a new restaurant concept. It is ideal for owner-operators, franchise users, or investors.
Key Highlights
- Turnkey, fully‑equipped second‑generation restaurant space ready for immediate operation.
- Includes existing BBQ business and equipment, offering immediate income potential.
- High‑visibility frontage on Hollister Street near U.S. 290 and Beltway 8.**
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
$113,024
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
6.85%
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%
$2,260,480
$2.3M
Cap Rate 7%
$1,614,629
$1.6M
Cap Rate 9%
$1,255,822
$1.3M
Market Conditions
NOI Build-Up for 7,344 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
$158.6K $21.60/SF
− Vacancy
−$7.9K −$1.08/SF
EGI
$150.7K $20.52/SF
− OpEx
−$37.7K −$5.13/SF
NOI
$113.0K $15.39/SF
Area
Houston, TX
Vacancy
5.00%
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%
$2,260,480
Cap Rate 7%
$1,614,629
Cap Rate 9%
$1,255,822
Alternative Uses
Best Use
Specialty Retail
$1.61M
$1.41M – $1.88M
NOI $113,024 @ 7.0% cap · market cap 6.85%
Second Best
Retail
$1.42M
$1.24M – $1.66M
NOI $99,582 @ 7.0% cap · market cap 6.04%
Theoretical Best
Office A
$1.89M
$1.65M – $2.20M
NOI $132,192 @ 7.0% cap · market cap 8.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,118
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 77040, TX
49,524
Population
19,197
Households
2.6
Avg Household Size
35
Median Age
28%
College-Educated
79%
High-School Grad
13.8 sq mi
ZIP Area
3,589
Density / Sq Mi
$67,254
Median Household Income
$37,004
Median Earnings
$1,343
Median Rent
$224,200
Median Home Value
Market
Vacancy Rate% for Retail in Houston, TX
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- The Marigold Café — 7676 Hillmont St # 103, Houston, TX 77040
- Itea Catering — Houston, TX 77040
Frequently Asked Questions
What type of property is this?
Restaurant - Established restaurant property in Northwest Houston with high-visibility frontage.
Where is this restaurant located?
The property is located at 5320 Hollister St Houston, TX.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Turnkey, fully‑equipped second‑generation restaurant space ready for immediate operation.; Includes existing BBQ business and equipment, offering immediate income potential.; High‑visibility frontage on Hollister Street near U.S. 290 and Beltway 8.**
