Freestanding Restaurant
For Sale
$2,295,000
1440 Louetta Rd, Spring, TX 77388
Freestanding 7,684-square-foot restaurant building with road frontage and generous parking along Louetta Road.
Property Size7,684 SF
Price / SF$298.67
Days on Market50
Property Features for 1440 Louetta Rd
General Information
Standard status
Active
Size
7,684 SF
Property subtype
Vacant-User
Amenities
Located Near the Intersection of Interstate 45 and Louetta Road
High Visibility
Established Restaurant Layout
Building Details
Building Size
7,684 SF
Year Built
2010
Listing Agency:
Houston Office
Listed By:
Gus Lagos · License #License(s): TX: 419197
(713) 452-4257
Source:
Marcusmillichap
Added: Jul 18
Changed: Aug 27
Last Checked: Sep 5 at 3:46AM
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 Houston Office
Investment Insights
Based on property information with market context.
Marcus & Millichap exclusively offers a freestanding restaurant building for sale or lease. The property is a former Razzoo’s and contains an established restaurant layout within a 7,684-square-foot building.
The building is positioned along Louetta Road in Spring, Texas, with frontage on one of the area’s active commercial corridors. The site also offers generous parking and convenient access for both local residents and commuters.
This freestanding configuration provides a substantial interior footprint designed for restaurant operations, offering a practical starting point for a new concept while supporting efficient customer access on-site.
The building is positioned along Louetta Road in Spring, Texas, with frontage on one of the area’s active commercial corridors. The site also offers generous parking and convenient access for both local residents and commuters.
This freestanding configuration provides a substantial interior footprint designed for restaurant operations, offering a practical starting point for a new concept while supporting efficient customer access on-site.
Key Highlights
- Freestanding restaurant building (former Razzoo’s) built in 2010
- 7,684‑SF restaurant building with established interior layout
- Located at 1440 Louetta Road along a high‑traffic commercial corridor
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
$135,789
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
5.92%
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%
$2,715,780
$2.7M
Cap Rate 7%
$1,939,843
$1.9M
Cap Rate 9%
$1,508,767
$1.5M
Market Conditions
NOI Build-Up for 7,684 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
$191.8K $24.96/SF
− Vacancy
−$10.7K −$1.40/SF
EGI
$181.1K $23.56/SF
− OpEx
−$45.3K −$5.89/SF
NOI
$135.8K $17.67/SF
Area
Montgomery County, TX
Vacancy
5.60%
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%
$2,715,780
Cap Rate 7%
$1,939,843
Cap Rate 9%
$1,508,767
Alternative Uses
Best Use
Specialty Retail
$1.94M
$1.70M – $2.26M
NOI $135,789 @ 7.0% cap · market cap 5.92%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
800
Businesses Nearby
624k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 28%
Superstores 24%
Apparel 23%
Shops & Services 20%
Walmart
Superstores
146,871 visits/mo
0.4 miles
Kohl's
Apparel
51,762 visits/mo
0.4 miles
Academy Sports + Outdoors
Apparel
48,643 visits/mo
0.4 miles
Chick-fil-A
Dining
47,133 visits/mo
0.2 miles
Ross Dress for Less
Apparel
42,085 visits/mo
0.4 miles
Demographics for 77388, TX
51,483
Population
18,924
Households
2.7
Avg Household Size
37
Median Age
34%
College-Educated
92%
High-School Grad
13.4 sq mi
ZIP Area
3,842
Density / Sq Mi
$101,588
Median Household Income
$53,925
Median Earnings
$1,809
Median Rent
$264,600
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 - Freestanding 7,684-square-foot restaurant building with road frontage and generous parking along Louetta Road.
Where is this conventional restaurant located?
The property is located at 1440 Louetta Rd Spring, TX.
What is the asking price?
The asking price for this property is $2,295,000.
What are key features of this property?
This property features: Freestanding restaurant building (former Razzoo’s) built in 2010; 7,684‑SF restaurant building with established interior layout; Located at 1440 Louetta Road along a high‑traffic commercial corridor
