Mixed-Use Property with
For Sale
$799,000
3777 San Marcos Highway, Luling, TX 78648
Includes an operating restaurant business, a residence, and no zoning restrictions.
Property Size3,540 SF
Price / SF$225.71
Days on Market1894
Property Features for 3777 San Marcos Highway
General Information
Standard status
Active
Size
3,540 SF
Total Parking Spaces
14
Property subtype
Commercial Sale / Mixed Use
Financials
Business Included
Yes
Opportunity Zone
Yes
Taxes and HOA fees
Annual Taxes
$7,039
Building Details
Year Built
1966
Buildings
4
Listing Agency:
MODUS Real Estate
(512) 212-7872
Listed By:
Liz Warren · License #0674504
(512) 212-7872
Source:
Compass
Added: Jun 24, 2021
Changed: Aug 30
Last Checked: Aug 30 at 1:28AM
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 MODUS Real Estate
Investment Insights
Based on property information with market context.
This mixed-use property combines an operating restaurant business with a residence and offers 3,540 square feet of improvements. The property was built in 1966 and is being offered with the business included in the sale.
Located at 3777 San Marcos Highway in Luling, Texas, the property is within a recognized Texas Opportunity Zone, where potential tax incentives are available. No zoning restrictions are identified for the site.
Located at 3777 San Marcos Highway in Luling, Texas, the property is within a recognized Texas Opportunity Zone, where potential tax incentives are available. No zoning restrictions are identified for the site.
Key Highlights
- 3,540 square feet of mixed‑use improvements
- Operating Rooster's Wing Shack business included in the sale
- Residence included with the property
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
$66,786
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
8.36%
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%
$1,335,720
$1.3M
Cap Rate 7%
$954,086
$954.1K
Cap Rate 9%
$742,067
$742.1K
Market Conditions
NOI Build-Up for 3,540 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
$92.2K $26.04/SF
− Vacancy
−$3.1K −$0.89/SF
EGI
$89.0K $25.15/SF
− OpEx
−$22.3K −$6.29/SF
NOI
$66.8K $18.87/SF
Area
Caldwell County, TX
Vacancy
3.40%
Lease Rate
$26.04 /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%
$1,335,720
Cap Rate 7%
$954,086
Cap Rate 9%
$742,067
Alternative Uses
Best Use
Specialty Retail
$954.1K
$834.8K – $1.11M
NOI $66,786 @ 7.0% cap · market cap 8.36%
Second Best
Mixed Use
$834.4K
$730.1K – $973.5K
NOI $58,410 @ 7.0% cap · market cap 7.31%
Theoretical Best
Office A
$1.48M
$1.29M – $1.73M
NOI $103,587 @ 7.0% cap · market cap 12.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
7
Businesses Nearby
Explore this area
Business Placement
Demographics for 78648, TX
8,167
Population
3,563
Households
2.3
Avg Household Size
39
Median Age
11%
College-Educated
75%
High-School Grad
132.9 sq mi
ZIP Area
61
Density / Sq Mi
$56,533
Median Household Income
$30,836
Median Earnings
$1,063
Median Rent
$217,400
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?
Mixed-use property - Includes an operating restaurant business, a residence, and no zoning restrictions.
Where is this mixed-use property located?
The property is located at 3777 San Marcos Highway Luling, TX.
What is the asking price?
The asking price for this property is $799,000.
What are key features of this property?
This property features: 3,540 square feet of mixed‑use improvements; Operating Rooster's Wing Shack business included in the sale; Residence included with the property
