Turnkey Restaurant Building
For Sale
$900,000
204 Tom Gill Road, Penitas, TX 78576
Established restaurant space with dine-in, bar/lounge, take-out options, and on-site and shared customer parking.
Property Size3,182 SF
Price / SF$282.84
Days on Market456
Property Features for 204 Tom Gill Road
General Information
Standard status
Active
Size
3,182 SF
Property subtype
General Commercial
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$5,492
Amenities
Central Air, Electric
3
20 Parking Spaces. Paved Driveway.
Security Lighting. City Road, Interstate Service Road.
Building Details
Year Built
2000
Listing Agency:
Keller Williams Realty Rgv
(956) 358-4409
Listed By:
Lisa Salinas
(956) 358-4409
Source:
Xome
Added: May 11, 2025
Changed: Aug 8
Last Checked: Aug 9 at 4:45AM
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 Keller Williams Realty Rgv
Investment Insights
Based on property information with market context.
This established restaurant building and restaurant package is offered for sale with a configuration designed to support dine-in service, a bar/lounge area, and take-out operations. The property is presented as a turnkey restaurant offering.
Located at 204 Tom Gill Road in Penitas, TX, the restaurant is positioned in a commercial corridor with strong daily traffic, anchored by national retailers and major brand neighbors. Customer access is supported by on-site and shared parking spaces.
Owner finance options are mentioned as available with the sale. The property is also described as being within a corridor experiencing rapid residential and commercial development.
Located at 204 Tom Gill Road in Penitas, TX, the restaurant is positioned in a commercial corridor with strong daily traffic, anchored by national retailers and major brand neighbors. Customer access is supported by on-site and shared parking spaces.
Owner finance options are mentioned as available with the sale. The property is also described as being within a corridor experiencing rapid residential and commercial development.
Key Highlights
- Established restaurant space with dine‑in service, bar/lounge area, and take‑out options
- 20 parking spaces with a paved driveway, plus on‑site and shared customer parking
- Security lighting on the exterior
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
$46,180
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
5.13%
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%
$923,600
$923.6K
Cap Rate 7%
$659,714
$659.7K
Cap Rate 9%
$513,111
$513.1K
Market Conditions
NOI Build-Up for 3,182 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
$65.3K $20.52/SF
− Vacancy
−$3.7K −$1.17/SF
EGI
$61.6K $19.35/SF
− OpEx
−$15.4K −$4.84/SF
NOI
$46.2K $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%
$923,600
Cap Rate 7%
$659,714
Cap Rate 9%
$513,111
Alternative Uses
Best Use
Specialty Retail
$659.7K
$577.3K – $769.7K
NOI $46,180 @ 7.0% cap · market cap 5.13%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$2.40M
$2.10M – $2.80M
NOI $167,771 @ 7.0% cap · market cap 18.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
21
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78576, TX
13,901
Population
3,362
Households
4.1
Avg Household Size
25
Median Age
6%
College-Educated
53%
High-School Grad
58.2 sq mi
ZIP Area
239
Density / Sq Mi
$48,205
Median Household Income
$21,962
Median Earnings
$629
Median Rent
$116,600
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 - Established restaurant space with dine-in, bar/lounge, take-out options, and on-site and shared customer parking.
Where is this conventional restaurant located?
The property is located at 204 Tom Gill Road Penitas, TX.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: Established restaurant space with dine‑in service, bar/lounge area, and take‑out options; 20 parking spaces with a paved driveway, plus on‑site and shared customer parking; Security lighting on the exterior
