Renovated Restaurant with Industrial
New
For Sale
$300,000
216 S Main Street, Kemp, TX 75143
Renovated restaurant property includes a full industrial kitchen and flexible upper-level space.
Property Size2,500 SF
Days on Market3
Property Features for 216 S Main Street
General Information
Standard status
Active
Size
2,500 SF
Property subtype
Commercial
Zoning
Commercial
Additional Details
Equipment Included
Yes
Amenities
industrial kitchen
basement
second story event space
Building Details
Building Size
2,500 SF
Year Built
1900
Stories
2
Units
1
Listing Agency:
Keller Williams Prosper Celina
(469) 336-9487
Listed By:
Farrah Zargaran · License #0672874
(469) 336-9487
Source:
Cornerstonehomeandranch
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 10 at 12:06PM
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 Prosper Celina
Investment Insights
Based on property information with market context.
This restaurant property occupies a historic commercial building constructed in 1900. Improvements include updated paint, flooring, electrical work, and other renovations, while historic architectural elements remain. The property includes a full industrial kitchen with equipment available for continued use, a dining area with two bathrooms, and a basement configured for deliveries and storage.
The second floor adds a separate room that can serve as office space or private-event dining, along with an additional bathroom. Located at 216 S Main Street in downtown Kemp, the property combines restaurant infrastructure with multiple supporting areas within a two-story building.
The second floor adds a separate room that can serve as office space or private-event dining, along with an additional bathroom. Located at 216 S Main Street in downtown Kemp, the property combines restaurant infrastructure with multiple supporting areas within a two-story building.
Key Highlights
- Full industrial kitchen with equipment available
- Basement provides delivery and storage space
- Second‑floor room with separate bathroom
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
$16,088
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
5.36%
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%
$321,760
$321.8K
Cap Rate 7%
$229,829
$229.8K
Cap Rate 9%
$178,756
$178.8K
Market Conditions
NOI Build-Up for 2,500 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
$24.9K $9.96/SF
− Vacancy
−$1.9K −$0.77/SF
EGI
$23.0K $9.19/SF
− OpEx
−$6.9K −$2.76/SF
NOI
$16.1K $6.44/SF
Area
Kaufman County, TX
Vacancy
7.70%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
30.00%
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%
$321,760
Cap Rate 7%
$229,829
Cap Rate 9%
$178,756
Alternative Uses
Best Use
Specialty Retail
$638.5K
$558.7K – $744.9K
NOI $44,694 @ 7.0% cap · market cap 14.90%
Second Best
Retail
$595.9K
$521.4K – $695.2K
NOI $41,714 @ 7.0% cap · market cap 13.90%
Theoretical Best
Multifamily LT 5
$31.46M
$27.53M – $36.71M
NOI $2,202,454 @ 7.0% cap · market cap 734.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
155
Businesses Nearby
4k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar Tree
Shops & Services
4,445 visits/mo
0.4 miles
Demographics for 75143, TX
15,349
Population
7,088
Households
2.2
Avg Household Size
45
Median Age
18%
College-Educated
86%
High-School Grad
181.9 sq mi
ZIP Area
84
Density / Sq Mi
$68,996
Median Household Income
$41,273
Median Earnings
$1,163
Median Rent
$173,200
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 - Renovated restaurant property includes a full industrial kitchen and flexible upper-level space.
Where is this conventional restaurant located?
The property is located at 216 S Main Street Kemp, TX.
What is the asking price?
The asking price for this property is $300,000.
What are key features of this property?
This property features: Full industrial kitchen with equipment available; Basement provides delivery and storage space; Second‑floor room with separate bathroom
