Renovated Restaurant with Industrial
New
For Sale
$300,000
216 S Main St, Kemp, TX 75143
Two-story restaurant property with retained historic details, upgraded interiors, commercial kitchen equipment, and flexible support areas.
Property Size2,500 SF
Price / SF$120
Days on Market4
Property Features for 216 S Main St
General Information
Standard status
Active
Size
2,500 SF
Additional Details
Equipment Included
Yes
Amenities
full industrial kitchen
basement
second story room
Building Details
Year Built
1900
Listing Agency:
Keller Williams Prosper Celina
Listed By:
Farrah Zargaran · License #0672874
(214) 550-2793
Source:
Yourdavisteam
Added: Sep 9
Changed: Sep 10
Last Checked: Sep 12 at 12:25PM
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 2,500-square-foot conventional restaurant occupies a two-story building constructed in 1900. The property includes an industrial kitchen with equipment available for continued use, a main dining area, two primary bathrooms, and a separate bathroom serving the upper level. A basement provides delivery and storage space, while the second floor can accommodate office functions or private events.
Recent improvements include new paint, flooring, and electrical upgrades, with historic architectural elements maintained throughout the building. Located at 216 S Main St in Kemp, Texas, the property offers a restaurant-ready configuration with adaptable dining, preparation, storage, and administrative areas.
Recent improvements include new paint, flooring, and electrical upgrades, with historic architectural elements maintained throughout the building. Located at 216 S Main St in Kemp, Texas, the property offers a restaurant-ready configuration with adaptable dining, preparation, storage, and administrative areas.
Key Highlights
- 2,500‑square‑foot restaurant building constructed in 1900
- Industrial kitchen and equipment remain available
- Basement offers delivery access and storage space
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
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
119
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Two-story restaurant property with retained historic details, upgraded interiors, commercial kitchen equipment, and flexible support areas.
Where is this conventional restaurant located?
The property is located at 216 S Main St 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: 2,500‑square‑foot restaurant building constructed in 1900; Industrial kitchen and equipment remain available; Basement offers delivery access and storage space
