Freestanding Restaurant with Additional
For Sale
$435,000
1306 E 7th St, Odessa, TX 79761
Commercial Sale, Odessa, TX
Property Size1,440 SF
Lot Size0.21 Acres
Price / SF$302.08
Days on Market98
Property Features for 1306 E 7th St
General Information
Property type
Residential
Property subtype
Retail
Fencing
Chain Link
Accessibility
Accessible Approach with Ramp
Subdivision
Royalty Heights
Standard status
Active
APN
100006751
Size
1,440 SF
Lot size
0.21 Acres
Taxes and HOA fees
Tax Annual Amount
2031
Utilities
Utilities
Cable Available
Building Details
Year built
2001
Floors in Building
1
Building materials
Metal Construction, Metal Siding
Roof type
Metal, Flat
Listing Agency:
Wright Choice Real Estate & Associates LLC
(432) 614-2156
Listed By:
Gloria Wright/ Damien Wright
(432) 352-1926
Added: May 19
Changed: Aug 20
Last Checked: Aug 24 at 9:06AM
MLS# 162453
Copyright © 2026 Odessa Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,440-square-foot full-service restaurant was built in 2001 and features metal construction, metal siding, and a flat metal roof. The property includes an accessible approach with ramp, chain-link fencing, and cable availability. The sale also includes a separate 0.20-acre lot between the restaurant and Church's Chicken.
Located in Odessa near downtown, the property is within distance of local hospitals, the medical district, and surrounding industry-leading businesses. The restaurant is positioned at 1306 E 7th St and offers an established commercial setting for restaurant operations.
Located in Odessa near downtown, the property is within distance of local hospitals, the medical district, and surrounding industry-leading businesses. The restaurant is positioned at 1306 E 7th St and offers an established commercial setting for restaurant operations.
Key Highlights
- 1,440 SF full‑service restaurant
- Sale includes a separate 0.20‑acre lot
- Built in 2001 with metal construction and siding
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
$19,284
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
4.43%
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%
$385,680
$385.7K
Cap Rate 7%
$275,486
$275.5K
Cap Rate 9%
$214,267
$214.3K
Market Conditions
NOI Build-Up for 1,440 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
$27.6K $19.20/SF
− Vacancy
−$1.9K −$1.34/SF
EGI
$25.7K $17.86/SF
− OpEx
−$6.4K −$4.46/SF
NOI
$19.3K $13.39/SF
Area
Odessa, TX
Vacancy
7.00%
Lease Rate
$19.20 /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%
$385,680
Cap Rate 7%
$275,486
Cap Rate 9%
$214,267
Alternative Uses
Best Use
Specialty Retail
$275.5K
$241.1K – $321.4K
NOI $19,284 @ 7.0% cap · market cap 4.43%
Second Best
—
—
no second resolved use
Theoretical Best
Flex RnD
$2.09M
$1.83M – $2.44M
NOI $146,541 @ 7.0% cap · market cap 33.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,372
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79761, TX
30,187
Population
13,591
Households
2.2
Avg Household Size
35
Median Age
14%
College-Educated
76%
High-School Grad
10.4 sq mi
ZIP Area
2,903
Density / Sq Mi
$69,279
Median Household Income
$42,724
Median Earnings
$1,246
Median Rent
$158,400
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?
Conventional restaurant - Full-service restaurant with a separate adjoining lot and accessibility ramp near Odessa’s medical district.
Where is this conventional restaurant located?
The property is located at 1306 E 7th St Odessa, TX.
What is the asking price?
The asking price for this property is $435,000.
What are key features of this property?
This property features: 1,440 SF full‑service restaurant; Sale includes a separate 0.20‑acre lot; Built in 2001 with metal construction and siding
