Established Restaurant on Highway
For Sale
Contact for pricing
405 S Main St, Taylor, TX 76574
Operating Mexican restaurant with highway frontage in downtown Taylor, Texas.
Property Size2,000 SF
Price / SF$450
Days on Market1417
Property Features for 405 S Main St
General Information
Standard status
Active
Size
2,000 SF
Class
B
Property subtype
Retail
Zoning
B2
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$45,960
Building Details
Year Built
1960
Year Renovated
2019
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Texas Capital Real Estate, LLC
(512) 366-7894
Listed By:
Johan Borge · License #TX 0566856
Source:
Crexi
Added: Oct 7, 2022
Changed: Aug 13
Last Checked: Aug 7 at 10:20AM
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 Texas Capital Real Estate, LLC
Investment Insights
Based on property information with market context.
This property features an operating Mexican restaurant situated with frontage on Highway 95 in downtown Taylor, Texas. The location benefits from high traffic counts. Recent updates to the property include improvements to the wiring, roof, insulation, and flooring, as well as enhancements to the kitchen. The property size is 2000 square feet. This commercial real estate is suitable for conventional restaurant use.
Key Highlights
- Established Mexican restaurant business
- High‑traffic location on Hwy 95 in downtown Taylor
- Recent updates to wiring, roof, insulation, and flooring
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
$37,732
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
4.19%
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%
$754,640
$754.6K
Cap Rate 7%
$539,029
$539.0K
Cap Rate 9%
$419,244
$419.2K
Market Conditions
NOI Build-Up for 2,000 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
$52.1K $26.04/SF
− Vacancy
−$1.8K −$0.89/SF
EGI
$50.3K $25.15/SF
− OpEx
−$12.6K −$6.29/SF
NOI
$37.7K $18.87/SF
Area
Williamson County, TX
Vacancy
3.40%
Lease Rate
$26.04 /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%
$754,640
Cap Rate 7%
$539,029
Cap Rate 9%
$419,244
Alternative Uses
Best Use
Specialty Retail
$539.0K
$471.7K – $628.9K
NOI $37,732 @ 7.0% cap · market cap 4.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$836.1K
$731.6K – $975.4K
NOI $58,524 @ 7.0% cap · market cap 6.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
483
Businesses Nearby
930
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
City National Bank
Shops & Services
930 visits/mo
0.4 miles
Demographics for 76574, TX
19,366
Population
8,458
Households
2.3
Avg Household Size
40
Median Age
20%
College-Educated
86%
High-School Grad
149.0 sq mi
ZIP Area
130
Density / Sq Mi
$72,805
Median Household Income
$40,994
Median Earnings
$1,167
Median Rent
$252,000
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 - Operating Mexican restaurant with highway frontage in downtown Taylor, Texas.
Where is this conventional restaurant located?
The property is located at 405 S Main St Taylor, TX.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: Established Mexican restaurant business; High‑traffic location on Hwy 95 in downtown Taylor; Recent updates to wiring, roof, insulation, and flooring
