Equipped Restaurant on High-Traffic
For Sale
Contact for pricing
121 E Bentsen Palm Drive, Palmview, TX 78572
Fully equipped restaurant for sale in Palmview, Texas.
Property Size3,344 SF
Price / SF$177.93
Days on Market795
Property Features for 121 E Bentsen Palm Drive
General Information
Standard status
Active
Size
3,344 SF
Total Parking Spaces
20
Property subtype
Retail
Building Details
Year Built
1983
Listing Agency:
Alliance Real Estate Group
(956) 340-4633
Listed By:
Francisco Pacheco
Source:
Crexi
Added: Jun 21, 2024
Changed: Aug 19
Last Checked: Aug 23 at 2:31PM
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 Alliance Real Estate Group
Investment Insights
Based on property information with market context.
A fully equipped restaurant is available for sale in Palmview, Texas, situated in the Mission area. The restaurant, previously leased by the owner to the same tenant for over 10 years, was well-established and income-producing. It features a complete kitchen and serving area, including natural gas stoves, freezers, a cold room, an ice maker, chairs, tables, utensils, plates, glasses, and a buffet car. The property is currently leased, but the tenant will be vacating soon. Located on the corner of Bentsen Palms Drive and East Expressway 83 frontage road, the restaurant benefits from high traffic and visibility. According to the owner, it generates good sales income per month, depending on the season. The 3,344 square foot property could also be transformed for other uses according to needs.
Key Highlights
- Fully equipped restaurant featuring natural gas stoves, freezers, cold room, ice maker, chairs, tables, utensils, plates, glasses, and buffet car.
- High‑traffic corner location on Bentsen Palms Dr & East Exp 83 frontage Rd.
- Previously well‑established and income‑producing restaurant with a 10+ year tenant history.
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
$48,531
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
8.16%
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%
$970,620
$970.6K
Cap Rate 7%
$693,300
$693.3K
Cap Rate 9%
$539,233
$539.2K
Market Conditions
NOI Build-Up for 3,344 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
$68.6K $20.52/SF
− Vacancy
−$3.9K −$1.17/SF
EGI
$64.7K $19.35/SF
− OpEx
−$16.2K −$4.84/SF
NOI
$48.5K $14.51/SF
Area
Hidalgo County, TX
Vacancy
5.70%
Lease Rate
$20.52 /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%
$970,620
Cap Rate 7%
$693,300
Cap Rate 9%
$539,233
Alternative Uses
Best Use
Specialty Retail
$693.3K
$606.6K – $808.9K
NOI $48,531 @ 7.0% cap · market cap 8.16%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$2.52M
$2.20M – $2.94M
NOI $176,312 @ 7.0% cap · market cap 29.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
76
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78572, TX
78,280
Population
32,696
Households
2.4
Avg Household Size
36
Median Age
25%
College-Educated
75%
High-School Grad
53.7 sq mi
ZIP Area
1,458
Density / Sq Mi
$54,029
Median Household Income
$30,004
Median Earnings
$900
Median Rent
$121,900
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?
Conventional restaurant - Fully equipped restaurant for sale in Palmview, Texas.
Where is this conventional restaurant located?
The property is located at 121 E Bentsen Palm Drive Palmview, TX.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: Fully equipped restaurant featuring natural gas stoves, freezers, cold room, ice maker, chairs, tables, utensils, plates, glasses, and buffet car.; High‑traffic corner location on Bentsen Palms Dr & East Exp 83 frontage Rd.; Previously well‑established and income‑producing restaurant with a 10+ year tenant history.
