Restaurant with Drive-Thru For
For Sale
Contact for pricing
Pending
405 West Front Street, Tyler, TX 75702
NNN leased restaurant property with drive-thru in Tyler, Texas.
Property Size2,650 SF
Days on Market173
Property Features for 405 West Front Street
General Information
Standard status
Pending
Size
2,650 SF
Total Parking Spaces
20
Property subtype
Retail
Zoning
DBAC
Occupancy
100%
Lease Type
Absolute NNN
Investment Type
Net Lease
Building Details
Year Built
1979
Year Renovated
2017
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Marcus & Millichap - Oklahoma City
Listed By:
Tim Speck · License #149994
Source:
Crexi
Added: Feb 16
Changed: Aug 8
Last Checked: Aug 8 at 6:31AM
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 Marcus & Millichap - Oklahoma City
Investment Insights
Based on property information with market context.
Originally built in 1979 as a Mazzio's Pizza Restaurant, the property is currently subleased to Mi Mexico Lindo, a family-operated restaurant chain with three locations in Tyler, Texas. Mi Mexico Lindo subleased this property in January 2017 and in January 2026 executed their 2nd five-year lease option. The current monthly rent is $1.50 per square foot NNN. The absolute NNN lease structure places responsibility for expenses on the tenant. The building includes a drive-thru lane. The city of Tyler, the county seat of Smith County, has a population of 106,000. Within a 3-mile radius of the property, there are 61,809 residents with an average household income of $70,946. If the final 5-year lease option is exercised, a 10% fixed rent increase is scheduled.
Key Highlights
- Absolute NNN lease, offering a hands‑off investment opportunity.
- Tenant (Mi Mexico Lindo) has a history at this location, subleasing since 2017 and executing a second lease option.
- Potential for a 10% fixed rent increase if the final lease option is exercised in 2031.
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
$33,080
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
4.68%
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%
$661,600
$661.6K
Cap Rate 7%
$472,571
$472.6K
Cap Rate 9%
$367,556
$367.6K
Market Conditions
NOI Build-Up for 2,650 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
$46.4K $17.52/SF
− Vacancy
−$2.3K −$0.88/SF
EGI
$44.1K $16.64/SF
− OpEx
−$11.0K −$4.16/SF
NOI
$33.1K $12.48/SF
Area
Tyler, TX
Vacancy
5.00%
Lease Rate
$17.52 /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%
$661,600
Cap Rate 7%
$472,571
Cap Rate 9%
$367,556
Alternative Uses
Best Use
Specialty Retail
$472.6K
$413.5K – $551.3K
NOI $33,080 @ 7.0% cap · market cap 4.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$591.5K
$517.5K – $690.1K
NOI $41,403 @ 7.0% cap · market cap 5.86%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,919
Businesses Nearby
16k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 69%
Apparel 21%
Shops & Services 10%
Wendy's
Dining
11,028 visits/mo
0.1 miles
Goodwill
Apparel
3,415 visits/mo
0.4 miles
Enterprise Rent-A-Car
Shops & Services
1,539 visits/mo
0.1 miles
Demographics for 75702, TX
26,777
Population
10,273
Households
2.6
Avg Household Size
32
Median Age
8%
College-Educated
72%
High-School Grad
14.1 sq mi
ZIP Area
1,899
Density / Sq Mi
$51,177
Median Household Income
$30,399
Median Earnings
$906
Median Rent
$99,700
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?
Drive through restaurant - NNN leased restaurant property with drive-thru in Tyler, Texas.
Where is this drive through restaurant located?
The property is located at 405 West Front Street Tyler, TX.
What is the asking price?
The asking price for this property is $707,000.
What are key features of this property?
This property features: Absolute NNN lease, offering a hands‑off investment opportunity.; Tenant (Mi Mexico Lindo) has a history at this location, subleasing since 2017 and executing a second lease option.; Potential for a 10% fixed rent increase if the final lease option is exercised in 2031.
