Freestanding Restaurant with New
For Sale
$1,750,000
3402 St Michael Dr, Texarkana, TX 75503
Commercial Sale, Texarkana, TX
Property Size6,200 SF
Lot Size1.27 Acres
Price / SF$282.26
Days on Market52
Property Features for 3402 St Michael Dr
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Restaurant
Subdivision
Richill
Directions
3402 St Michael Dr
Standard status
Active
Size
6,200 SF
Lot size
1.27 Acres
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air, Electric
Water source
Public
Building Details
Floors in Building
1
Flooring type
Concrete
Building materials
Brick
Listing Agency:
Texarkana Legacy Group
(870) 779-8000
Listed By:
Dan Butler · License #SA00051422
(903) 748-4701
Added: Jul 29
Changed: Sep 6
Last Checked: Sep 18 at 8:06PM
MLS# 108358
Copyright © 2026 Texarkana Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This freestanding restaurant property includes approximately 6,200 square feet within a brick building on 1.266 acres. The improvements feature concrete flooring, central heating, central air conditioning, and electric cooling, along with a recently installed roof.
The property sits on a frontage road with visibility from I-30 and is located in Texarkana, Texas. Public water and public sewer serve the site. The existing configuration and restaurant-oriented construction support continued consideration for food-service use, subject to applicable approvals and site requirements.
The property sits on a frontage road with visibility from I-30 and is located in Texarkana, Texas. Public water and public sewer serve the site. The existing configuration and restaurant-oriented construction support continued consideration for food-service use, subject to applicable approvals and site requirements.
Key Highlights
- 6,200‑square‑foot restaurant building on 1.266 acres
- Frontage road setting with I‑30 visibility
- Recently installed roof
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
$110,261
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
6.30%
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%
$2,205,220
$2.2M
Cap Rate 7%
$1,575,157
$1.6M
Cap Rate 9%
$1,225,122
$1.2M
Market Conditions
NOI Build-Up for 6,200 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
$154.8K $24.96/SF
− Vacancy
−$7.7K −$1.25/SF
EGI
$147.0K $23.71/SF
− OpEx
−$36.8K −$5.93/SF
NOI
$110.3K $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%
$2,205,220
Cap Rate 7%
$1,575,157
Cap Rate 9%
$1,225,122
Alternative Uses
Best Use
Specialty Retail
$1.58M
$1.38M – $1.84M
NOI $110,261 @ 7.0% cap · market cap 6.30%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$4.67M
$4.09M – $5.45M
NOI $326,895 @ 7.0% cap · market cap 18.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
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 - Brick restaurant building with concrete floors, central systems, and public water and sewer service.
Where is this conventional restaurant located?
The property is located at 3402 St Michael Dr Texarkana, TX.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: 6,200‑square‑foot restaurant building on 1.266 acres; Frontage road setting with I‑30 visibility; Recently installed roof
