Restaurant Building with Commercial
For Sale
$395,000
422 L Street, Harlingen, TX 78550
Existing improvements include food-service equipment, storage shelving, and a paved parking lot.
Property Size2,708 SF
Price / SF$145.86
Days on Market17
Property Features for 422 L Street
General Information
Standard status
Active
Size
2,708 SF
Property subtype
General Commercial
Additional Details
Equipment Included
Yes
Taxes and HOA fees
Annual Taxes
$6,269
Amenities
Central Air, Window Air Conditioning, Electric
3
Parking. Lot with Trees.
27 Parking Spaces. Handicap Parking, Off Street, Paved Driveway.
Extra Storage, Trees, Handicapped Access. City Road, Wooded.
Building Details
Year Built
2006
Listing Agency:
(956) 800-0331
Listed By:
Encore Fine Properties
(956) 800-0331
Source:
Xome
Added: Aug 6
Changed: Aug 18
Last Checked: Aug 22 at 3:51AM
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 Encore Fine Properties
Investment Insights
Based on property information with market context.
This 2006 restaurant property includes a commercial kitchen outfitted with a griddle, fryer, grill, commercial refrigerator, freezer, three-compartment sink, and cold-prep table. Additional improvements include shelving, racks, televisions, and a point-of-sale system located in the storage room. The property also features air-conditioning equipment, extra storage, handicapped access, and a paved driveway.
The site is located at 422 L Street in Harlingen, Texas. Exterior features include a parking lot with trees and 27 parking spaces, including designated handicap parking. The improvements were previously associated with Papa Joes Burgers & Stuff, providing an established restaurant-oriented configuration with kitchen and support equipment already in place.
The site is located at 422 L Street in Harlingen, Texas. Exterior features include a parking lot with trees and 27 parking spaces, including designated handicap parking. The improvements were previously associated with Papa Joes Burgers & Stuff, providing an established restaurant-oriented configuration with kitchen and support equipment already in place.
Key Highlights
- Commercial kitchen with griddle, fryer, grill, refrigeration, freezer, and three‑compartment sink
- Cold‑prep table, shelving, racks, televisions, and POS system included
- 27 parking spaces with handicap parking and paved driveway
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
$27,609
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
6.99%
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%
$552,180
$552.2K
Cap Rate 7%
$394,414
$394.4K
Cap Rate 9%
$306,767
$306.8K
Market Conditions
NOI Build-Up for 2,708 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
$39.0K $14.40/SF
− Vacancy
−$2.2K −$0.81/SF
EGI
$36.8K $13.59/SF
− OpEx
−$9.2K −$3.40/SF
NOI
$27.6K $10.20/SF
Area
Cameron County, TX
Vacancy
5.60%
Lease Rate
$14.40 /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%
$552,180
Cap Rate 7%
$394,414
Cap Rate 9%
$306,767
Alternative Uses
Best Use
Specialty Retail
$394.4K
$345.1K – $460.2K
NOI $27,609 @ 7.0% cap · market cap 6.99%
Second Best
Industrial
$181.0K
$158.4K – $211.2K
NOI $12,669 @ 7.0% cap · market cap 3.21%
Theoretical Best
Healthcare Medical
$466.3K
$408.0K – $544.0K
NOI $32,639 @ 7.0% cap · market cap 8.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
836
Businesses Nearby
77k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 68%
Groceries 20%
Shops & Services 12%
La Michoacana Meat Market
Groceries
15,469 visits/mo
0.5 miles
Jack in the Box
Dining
15,299 visits/mo
0.5 miles
Buffalo Wild Wings
Dining
13,093 visits/mo
0.4 miles
Applebee's
Dining
12,391 visits/mo
0.5 miles
Little Caesars Pizza
Dining
11,509 visits/mo
0.5 miles
Demographics for 78550, TX
56,038
Population
22,347
Households
2.5
Avg Household Size
35
Median Age
22%
College-Educated
77%
High-School Grad
94.2 sq mi
ZIP Area
595
Density / Sq Mi
$51,524
Median Household Income
$32,065
Median Earnings
$863
Median Rent
$120,500
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 - Existing improvements include food-service equipment, storage shelving, and a paved parking lot.
Where is this conventional restaurant located?
The property is located at 422 L Street Harlingen, TX.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Commercial kitchen with griddle, fryer, grill, refrigeration, freezer, and three‑compartment sink; Cold‑prep table, shelving, racks, televisions, and POS system included; 27 parking spaces with handicap parking and paved driveway
