Absolute NNN Red Lobster
For Sale
Contact for pricing
3002 Saint Michael Drive, Texarkana, TX 75503
Red Lobster on an estimated 1.79-acre site with a 25-year absolute triple-net lease in place.
Property Size7,422 SF
Lot Size1.79 Acres
Price / SF$404.20
Days on Market124
Property Features for 3002 Saint Michael Drive
General Information
Standard status
Active
Size
7,422 SF
Lot size
1.79 Acres
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$211,908
Building Details
Year Built
1986
Year Renovated
2013
Tenancy
Single
Listing Agency:
SURMOUNT
Listed By:
Judson Kauffman · License #NY 10401296108
Source:
Crexi
Added: May 6
Changed: Aug 26
Last Checked: Sep 5 at 4:37PM
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 SURMOUNT
Investment Insights
Based on property information with market context.
This property is an income-producing Red Lobster restaurant offered for sale as an absolute triple-net investment. The site includes approximately 7,422 rentable square feet of building space on an estimated 1.79-acre parcel. The property is subject to a 25-year absolute triple-net (NNN) lease that commenced on 08/01/2014, with scheduled 2.00% annual rent increases.
The asset is located at 3002 Saint Michael Drive in Texarkana, Texas. The current annual rent is listed as $211,908, and the lease term is 25 years from commencement.
The listing is presented as a conventional restaurant specialty asset operated under an absolute NNN structure, with the building and site held under the existing long-term lease.
The asset is located at 3002 Saint Michael Drive in Texarkana, Texas. The current annual rent is listed as $211,908, and the lease term is 25 years from commencement.
The listing is presented as a conventional restaurant specialty asset operated under an absolute NNN structure, with the building and site held under the existing long-term lease.
Key Highlights
- Red Lobster at 3002 St. Michael Dr, Texarkana, TX 75503
- Approximately 7,422 rentable SF building on an estimated 1.79‑acre parcel
- 25‑year absolute triple‑net (NNN) lease in place
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
$131,993
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
4.40%
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%
$2,639,860
$2.6M
Cap Rate 7%
$1,885,614
$1.9M
Cap Rate 9%
$1,466,589
$1.5M
Market Conditions
NOI Build-Up for 7,422 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
$185.3K $24.96/SF
− Vacancy
−$9.3K −$1.25/SF
EGI
$176.0K $23.71/SF
− OpEx
−$44.0K −$5.93/SF
NOI
$132.0K $17.78/SF
Area
Bowie County, TX
Vacancy
5.00%
Lease Rate
$24.96 /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%
$2,639,860
Cap Rate 7%
$1,885,614
Cap Rate 9%
$1,466,589
Alternative Uses
Best Use
Specialty Retail
$1.89M
$1.65M – $2.20M
NOI $131,993 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$5.59M
$4.89M – $6.52M
NOI $391,325 @ 7.0% cap · market cap 13.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,046
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 75503, TX
25,547
Population
11,464
Households
2.2
Avg Household Size
41
Median Age
35%
College-Educated
95%
High-School Grad
78.5 sq mi
ZIP Area
325
Density / Sq Mi
$67,733
Median Household Income
$43,508
Median Earnings
$1,185
Median Rent
$214,400
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 - Red Lobster on an estimated 1.79-acre site with a 25-year absolute triple-net lease in place.
Where is this conventional restaurant located?
The property is located at 3002 Saint Michael Drive Texarkana, TX.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Red Lobster at 3002 St. Michael Dr, Texarkana, TX 75503; Approximately 7,422 rentable SF building on an estimated 1.79‑acre parcel; 25‑year absolute triple‑net (NNN) lease in place
