Turnkey Restaurant with
For Sale
$400,000
2501 Ambler Avenue, Abilene, TX 79603
Restaurant building with new equipment and drive-through ready for operation.
Property Size2,520 SF
Lot Size0.47 Acres
Price / SF$158.73
Days on Market1247
Property Features for 2501 Ambler Avenue
General Information
Standard status
Active
Size
2,520 SF
Lot size
0.47 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$4,870
Building Details
Year Built
1997
Listing Agency:
Berkshire Hathaway HS Stovall
(325) 518-6612
Listed By:
Debbie Staggs · License #0642492
(325) 518-6612
Source:
Exitrealty
Added: Mar 15, 2023
Changed: Aug 9
Last Checked: Apr 5 at 9:09PM
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 Berkshire Hathaway HS Stovall
Investment Insights
Based on property information with market context.
This turnkey restaurant building is ready for a new owner. The interior was renovated starting in March 2018 and includes restaurant equipment. New commercial equipment includes a ventilation system, rotisserie oven, oven, grill, stove, refrigerator, and a new motor installed in the vent hood. The building also features a new walk-in freezer, pantry storage, a water heater, and updated bathrooms. Electrical updates and modifications to the building's layout have created an open floor plan. The building is equipped for drive-through service. The property size is 2520 square feet.
Key Highlights
- Turnkey restaurant with recently renovated interior and commercial equipment.
- New commercial kitchen equipment including ventilation system, rotisserie oven, oven, grill, stove, and refrigerator.
- Updated features include a walk‑in freezer, pantry storage, water heater, and updated bathrooms.
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
$25,175
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
6.29%
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%
$503,500
$503.5K
Cap Rate 7%
$359,643
$359.6K
Cap Rate 9%
$279,722
$279.7K
Market Conditions
NOI Build-Up for 2,520 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
$36.3K $14.40/SF
− Vacancy
−$2.7K −$1.08/SF
EGI
$33.6K $13.32/SF
− OpEx
−$8.4K −$3.33/SF
NOI
$25.2K $9.99/SF
Area
Abilene, TX
Vacancy
7.50%
Lease Rate
$14.40 /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%
$503,500
Cap Rate 7%
$359,643
Cap Rate 9%
$279,722
Alternative Uses
Best Use
Specialty Retail
$359.6K
$314.7K – $419.6K
NOI $25,175 @ 7.0% cap · market cap 6.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$562.6K
$492.3K – $656.4K
NOI $39,385 @ 7.0% cap · market cap 9.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
321
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79603, TX
23,746
Population
9,960
Households
2.4
Avg Household Size
35
Median Age
17%
College-Educated
83%
High-School Grad
59.2 sq mi
ZIP Area
401
Density / Sq Mi
$53,579
Median Household Income
$32,339
Median Earnings
$1,022
Median Rent
$114,000
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.
Frequently Asked Questions
What type of property is this?
Restaurant - Restaurant building with new equipment and drive-through ready for operation.
Where is this restaurant located?
The property is located at 2501 Ambler Avenue Abilene, TX.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Turnkey restaurant with recently renovated interior and commercial equipment.; New commercial kitchen equipment including ventilation system, rotisserie oven, oven, grill, stove, and refrigerator.; Updated features include a walk‑in freezer, pantry storage, water heater, and updated bathrooms.
