Large Restaurant
For Sale
$980,000
1100 Houston Ave, McAllen, TX 78501
Freestanding restaurant space with separate dining areas and bar area, totaling approximately 5,637 sf.
Property Size5,637 SF
Price / SF$173.85
Days on Market39
Property Features for 1100 Houston Ave
General Information
Standard status
Active
Size
5,637 SF
Building Details
Year Built
1990
Listing Agency:
Dillard and Chapa Real Estate
(956) 271-2600
Listed By:
Daniel A. Chapa
Source:
Aregtx
Added: Jul 21
Changed: Aug 11
Last Checked: Aug 26 at 10:41AM
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 Dillard and Chapa Real Estate
Investment Insights
Based on property information with market context.
This large restaurant space is available for sale (and also available for lease under MLS# 482327). The existing floor design is laid out with separate dining areas, along with a dedicated bar area, providing a functional plan for service and guest flow.
The property is offered at 1100 Houston Ave in McAllen, Texas 78501. It is positioned for operators looking for a turnkey restaurant layout rather than a blank-slate space.
The interior configuration is focused on dining and bar use, with the main improvements designed around distinct areas for guests and service.
The property is offered at 1100 Houston Ave in McAllen, Texas 78501. It is positioned for operators looking for a turnkey restaurant layout rather than a blank-slate space.
The interior configuration is focused on dining and bar use, with the main improvements designed around distinct areas for guests and service.
Key Highlights
- Freestanding restaurant space totaling approximately 5,637 SF
- Separate dining areas plus a dedicated bar area
- Building year built: 1990
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
$86,206
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
8.80%
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%
$1,724,120
$1.7M
Cap Rate 7%
$1,231,514
$1.2M
Cap Rate 9%
$957,844
$957.8K
Market Conditions
NOI Build-Up for 5,637 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
$121.8K $21.60/SF
− Vacancy
−$6.8K −$1.21/SF
EGI
$114.9K $20.39/SF
− OpEx
−$28.7K −$5.10/SF
NOI
$86.2K $15.29/SF
Area
McAllen, TX
Vacancy
5.60%
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%
$1,724,120
Cap Rate 7%
$1,231,514
Cap Rate 9%
$957,844
Alternative Uses
Best Use
Specialty Retail
$1.23M
$1.08M – $1.44M
NOI $86,206 @ 7.0% cap · market cap 8.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.53M
$1.34M – $1.79M
NOI $107,148 @ 7.0% cap · market cap 10.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,447
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
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 restaurant space with separate dining areas and bar area, totaling approximately 5,637 sf.
Where is this conventional restaurant located?
The property is located at 1100 Houston Ave McAllen, TX.
What is the asking price?
The asking price for this property is $980,000.
What are key features of this property?
This property features: Freestanding restaurant space totaling approximately 5,637 SF; Separate dining areas plus a dedicated bar area; Building year built: 1990
