Restaurant Building with Kitchen
For Sale
$349,000
221 W US Highway 83, San Juan, TX 78589
Former restaurant property with dining and kitchen areas and an established customer-flow layout.
Property Size5,127 SF
Price / SF$68.07
Days on Market148
Property Features for 221 W US Highway 83
General Information
Standard status
Active
Size
5,127 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$8,617
Amenities
Parking.
2 Parking Spaces. On Street.
Downtown, Strip Mall, City Road, Paved Road.
Building Details
Year Built
1995
Listing Agency:
Nova Realty Enterprise Llc
(956) 586-8968
Listed By:
Gabriela Chavez
(956) 586-8968
Source:
Xome
Added: Apr 6
Changed: Aug 30
Last Checked: Aug 30 at 11:14PM
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 Nova Realty Enterprise Llc
Investment Insights
Based on property information with market context.
Built in 1995, this conventional restaurant property includes a layout organized around dining, kitchen operations, and customer circulation. Its prior restaurant use provides an existing framework for food-service operations, while the interior configuration may also support other commercial uses identified in the property information, including retail, office, or event space.
The property is located at 221 W US Highway 83 in San Juan, with access from a paved city road. Exterior information identifies 2 on-street parking spaces. The site is also described in relation to downtown and strip mall settings, providing a commercial context for the building.
The property is located at 221 W US Highway 83 in San Juan, with access from a paved city road. Exterior information identifies 2 on-street parking spaces. The site is also described in relation to downtown and strip mall settings, providing a commercial context for the building.
Key Highlights
- Conventional restaurant property with existing dining and kitchen areas
- Previously operated as a restaurant
- Layout includes space for dining, kitchen operations, and customer circulation
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
$26,979
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
7.73%
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%
$539,580
$539.6K
Cap Rate 7%
$385,414
$385.4K
Cap Rate 9%
$299,767
$299.8K
Market Conditions
NOI Build-Up for 5,127 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
$41.2K $8.04/SF
− Vacancy
−$2.7K −$0.52/SF
EGI
$38.5K $7.52/SF
− OpEx
−$11.6K −$2.26/SF
NOI
$27.0K $5.26/SF
Area
Hidalgo County, TX
Vacancy
6.50%
Lease Rate
$8.04 /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%
$539,580
Cap Rate 7%
$385,414
Cap Rate 9%
$299,767
Alternative Uses
Best Use
Specialty Retail
$1.06M
$930.1K – $1.24M
NOI $74,407 @ 7.0% cap · market cap 21.32%
Second Best
Industrial
$385.4K
$337.2K – $449.7K
NOI $26,979 @ 7.0% cap · market cap 7.73%
Theoretical Best
Hotel Hospitality
$3.86M
$3.38M – $4.51M
NOI $270,321 @ 7.0% cap · market cap 77.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
550
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78589, TX
38,987
Population
12,393
Households
3.1
Avg Household Size
32
Median Age
13%
College-Educated
62%
High-School Grad
25.5 sq mi
ZIP Area
1,529
Density / Sq Mi
$51,662
Median Household Income
$27,679
Median Earnings
$926
Median Rent
$112,400
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?
Conventional restaurant - Former restaurant property with dining and kitchen areas and an established customer-flow layout.
Where is this conventional restaurant located?
The property is located at 221 W US Highway 83 San Juan, TX.
What is the asking price?
The asking price for this property is $349,000.
What are key features of this property?
This property features: Conventional restaurant property with existing dining and kitchen areas; Previously operated as a restaurant; Layout includes space for dining, kitchen operations, and customer circulation
