Restaurant with Separate Office
For Sale
$350,000
228 Chestnut St, Abilene, TX 79602
Includes restaurant equipment, a separate office, and dedicated storage space.
Property Size2,175 SF
Price / SF$160.92
Days on Market357
Property Features for 228 Chestnut St
General Information
Standard status
Active
Size
2,175 SF
Property subtype
Commercial
Building Details
Year Built
1891
Listing Agency:
Tommy Simons (office)
Listed By:
Tommy Simons · License #0583499
(325) 695-3730
Source:
Divinerealtygrp
Added: Sep 13, 2025
Changed: Sep 3
Last Checked: Sep 3 at 2:08AM
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 Tommy Simons (office)
Investment Insights
Based on property information with market context.
This restaurant property includes both the operating business and the underlying real estate. The 2,175-square-foot facility was built in 1891 and conveys with a large vent hood, grill, fryolator, commercial stove, steam table, three-bay sink, ice machine, and nearly new walk-in refrigerator. A separate office and storage building is also included.
The property is located at 228 Chestnut St in Abilene’s SODA District, within walking distance of the courthouse and surrounded by active businesses. The roof was replaced in 2014, while the HVAC system has received professional service every six months.
The property is located at 228 Chestnut St in Abilene’s SODA District, within walking distance of the courthouse and surrounded by active businesses. The roof was replaced in 2014, while the HVAC system has received professional service every six months.
Key Highlights
- Business and real estate conveyed together
- 2,175‑square‑foot restaurant facility built in 1891
- Includes large vent hood, grill, fryolator, commercial stove, and steam table
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
$21,728
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
6.21%
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%
$434,560
$434.6K
Cap Rate 7%
$310,400
$310.4K
Cap Rate 9%
$241,422
$241.4K
Market Conditions
NOI Build-Up for 2,175 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
$31.3K $14.40/SF
− Vacancy
−$2.3K −$1.08/SF
EGI
$29.0K $13.32/SF
− OpEx
−$7.2K −$3.33/SF
NOI
$21.7K $9.99/SF
Area
Abilene, TX
Vacancy
7.50%
Lease Rate
$14.40 /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%
$434,560
Cap Rate 7%
$310,400
Cap Rate 9%
$241,422
Alternative Uses
Best Use
Specialty Retail
$310.4K
$271.6K – $362.1K
NOI $21,728 @ 7.0% cap · market cap 6.21%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$485.6K
$424.9K – $566.6K
NOI $33,993 @ 7.0% cap · market cap 9.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,619
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79602, TX
25,389
Population
11,127
Households
2.3
Avg Household Size
36
Median Age
34%
College-Educated
91%
High-School Grad
121.7 sq mi
ZIP Area
209
Density / Sq Mi
$84,845
Median Household Income
$39,044
Median Earnings
$1,123
Median Rent
$233,000
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 - Includes restaurant equipment, a separate office, and dedicated storage space.
Where is this conventional restaurant located?
The property is located at 228 Chestnut St Abilene, TX.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Business and real estate conveyed together; 2,175‑square‑foot restaurant facility built in 1891; Includes large vent hood, grill, fryolator, commercial stove, and steam table
