Mixed-Use Building with Restaurant
For Sale
Contact for pricing
321 E FM 120, Pottsboro, TX 75076
Three-unit commercial property with restaurant improvements, an insurance tenancy, and Business zoning in Pottsboro.
Property Size3,000 SF
Price / SF$133
Days on Market12
Property Features for 321 E FM 120
General Information
Standard status
Active
Size
3,000 SF
Class
B
Property subtype
Hospitality, Mixed Use, Office
Zoning
Business
Lease Type
Modified Gross
Investment Type
Owner/User
Property Condition
Severity
Minor
Evidence
make some restaurant improvements
Additional Details
Furnished
Yes
Equipment Included
Yes
Building Details
Year Built
1985
Buildings
1
Stories
1
Units
3
Tenancy
Multi
Listing Agency:
Tracy Realty
(903) 786-3115
Listed By:
Tommi Sue Homuth · License #TX 623240
Source:
Crexi
Added: Aug 9
Changed: Aug 13
Last Checked: Aug 19 at 2:23AM
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 Tracy Realty
Investment Insights
Based on property information with market context.
Located at 321 E FM 120 in Pottsboro, this 3,000-square-foot mixed-use building contains three units. Two units are configured for restaurant operations, while the third is leased to an insurance agency. The sale includes the existing furniture and equipment, although restaurant-related improvements are needed. Built in 1985, the property has four restrooms distributed across the units: two in the first, one in the second, and one in the third.
The property is positioned near Lake Texoma, with Highport, Mill Creek, Lighthouse, Grandpappy's, and Flowing Wells marinas identified as nearby destinations. Preston Harbor, Margaritaville, and Hard Rock resort are also cited in the surrounding development context. Business zoning supports the property's established commercial configuration.
The property is positioned near Lake Texoma, with Highport, Mill Creek, Lighthouse, Grandpappy's, and Flowing Wells marinas identified as nearby destinations. Preston Harbor, Margaritaville, and Hard Rock resort are also cited in the surrounding development context. Business zoning supports the property's established commercial configuration.
Key Highlights
- 3,000‑square‑foot mixed‑use building with three units
- Two units configured for restaurant operations
- Third unit leased to an insurance agency
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
$29,700
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
7.44%
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%
$594,000
$594.0K
Cap Rate 7%
$424,286
$424.3K
Cap Rate 9%
$330,000
$330.0K
Market Conditions
NOI Build-Up for 3,000 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
$54.0K $18.00/SF
− Vacancy
−$6.5K −$2.16/SF
EGI
$47.5K $15.84/SF
− OpEx
−$17.8K −$5.94/SF
NOI
$29.7K $9.90/SF
Area
Grayson County, TX
Vacancy
12.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$594,000
Cap Rate 7%
$424,286
Cap Rate 9%
$330,000
Alternative Uses
Best Use
Specialty Retail
$762.2K
$666.9K – $889.2K
NOI $53,352 @ 7.0% cap · market cap 13.37%
Second Best
Office B
$716.9K
$627.3K – $836.4K
NOI $50,181 @ 7.0% cap · market cap 12.58%
Theoretical Best
Hotel Hospitality
$1.54M
$1.35M – $1.80M
NOI $107,730 @ 7.0% cap · market cap 27.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
255
Businesses Nearby
Explore this area
Business Placement
Demographics for 75076, TX
8,057
Population
4,361
Households
1.8
Avg Household Size
50
Median Age
21%
College-Educated
93%
High-School Grad
50.3 sq mi
ZIP Area
160
Density / Sq Mi
$76,644
Median Household Income
$41,274
Median Earnings
$1,337
Median Rent
$241,700
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Three-unit commercial property with restaurant improvements, an insurance tenancy, and Business zoning in Pottsboro.
Where is this mixed-use property located?
The property is located at 321 E FM 120 Pottsboro, TX.
What is the asking price?
The asking price for this property is $399,000.
What are key features of this property?
This property features: 3,000‑square‑foot mixed‑use building with three units; Two units configured for restaurant operations; Third unit leased to an insurance agency
