Former Restaurant Near Sunset
For Sale
$2,000,000
3909 Sunset Dr, San Angelo, TX 76904
Former Red Lobster near Loop 306 and Sunset Mall.
Property Size7,872 SF
Days on Market160
Property Features for 3909 Sunset Dr
General Information
Standard status
Active
Size
7,872 SF
Property subtype
Retail
Building Details
Building Size
7,872 SF
Year Built
1984
Listing Agency:
Coldwell Banker Commercial Capital Advisors
(806) 784-3239
Listed By:
Eric Eberhardt · License #TX617046
(806) 784-3239
Source:
Cbcworldwide
Added: Mar 5
Changed: Aug 8
Last Checked: Aug 8 at 6:06AM
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 Coldwell Banker Commercial Capital Advisors
Investment Insights
Based on property information with market context.
The property, formerly a Red Lobster restaurant, is located at 3909 Sunset Drive in San Angelo, Texas. Situated just inside Loop 306 on Sunset Drive, the property benefits from a strategic location. San Angelo, home to Angelo State University, is ranked Top 12 in Texas in population growth. The property is located on a Sunset Mall pad and in proximity to retailers including Wal-Mart, HEB, Lowe's, and Sam's Club. The property is located less than three miles from Angelo State University (ASU), a public university founded in 1928 with over 10,000 students enrolled.
Key Highlights
- Prime location on Sunset Drive, just inside Loop 306.
- Located on a Sunset Mall pad site.
- Proximity to strong retailers: Wal‑Mart, HEB, Lowe's, and Sam's Club.
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
$139,259
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
6.96%
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%
$2,785,180
$2.8M
Cap Rate 7%
$1,989,414
$2.0M
Cap Rate 9%
$1,547,322
$1.5M
Market Conditions
NOI Build-Up for 7,872 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
$196.5K $24.96/SF
− Vacancy
−$10.8K −$1.37/SF
EGI
$185.7K $23.59/SF
− OpEx
−$46.4K −$5.90/SF
NOI
$139.3K $17.69/SF
Area
Tom Green County, TX
Vacancy
5.50%
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%
$2,785,180
Cap Rate 7%
$1,989,414
Cap Rate 9%
$1,547,322
Alternative Uses
Best Use
Specialty Retail
$1.99M
$1.74M – $2.32M
NOI $139,259 @ 7.0% cap · market cap 6.96%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$6.03M
$5.27M – $7.03M
NOI $421,823 @ 7.0% cap · market cap 21.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
643
Businesses Nearby
389k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 25%
Apparel 24%
Superstores 20%
Dining 15%
Target
Superstores
66,088 visits/mo
0.4 miles
Hobby Lobby
Shops & Services
47,902 visits/mo
0.5 miles
Five Below
Shops & Services
29,884 visits/mo
0.3 miles
Cinemark Tinseltown USA
Leisure
29,700 visits/mo
0.4 miles
Dillard's
Apparel
29,106 visits/mo
0.2 miles
Demographics for 76904, TX
36,736
Population
16,812
Households
2.2
Avg Household Size
37
Median Age
35%
College-Educated
95%
High-School Grad
440.8 sq mi
ZIP Area
83
Density / Sq Mi
$79,617
Median Household Income
$45,768
Median Earnings
$1,119
Median Rent
$266,800
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 Red Lobster near Loop 306 and Sunset Mall.
Where is this conventional restaurant located?
The property is located at 3909 Sunset Dr San Angelo, TX.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Prime location on Sunset Drive, just inside Loop 306.; Located on a Sunset Mall pad site.; Proximity to strong retailers: Wal‑Mart, HEB, Lowe's, and Sam's Club.
