Second-Generation Restaurant
For Sale
Contact for pricing
4950 S Loop 289, Lubbock, TX 79414
Large-format restaurant space is zoned Auto Urban Commercial and offers an existing 2nd generation buildout for a new operator.
Property Size7,042 SF
Price / SF$353.59
Days on Market219
Property Features for 4950 S Loop 289
General Information
Standard status
Active
Size
7,042 SF
Property subtype
RETAIL
Zoning
Auto Urban Commercial
Additional Details
Traffic Count
70,000 vehicles/day
Listing Agency:
Keller Williams Commercial Lubbock
(806) 392-0578
Listed By:
Jeremy Steen · License #685530
(806) 392-0578
Source:
Moodyscre
Added: Jan 16
Changed: Aug 23
Last Checked: Aug 23 at 3:45AM
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 Keller Williams Commercial Lubbock
Investment Insights
Based on property information with market context.
4950 S. Loop 289 is a 7,042-square-foot commercial property currently configured as a second-generation restaurant. The existing restaurant layout and infrastructure can support a new operator looking to reduce build-out time.
The property is positioned along a busy commercial corridor with visibility and access. Public remarks note traffic counts reaching up to 70,000 vehicles per day on Loop 289.
Zoned Auto Urban Commercial, the property is set up for restaurant use, including concepts such as a restaurant, bar and grill, or high-volume casual dining.
The property is positioned along a busy commercial corridor with visibility and access. Public remarks note traffic counts reaching up to 70,000 vehicles per day on Loop 289.
Zoned Auto Urban Commercial, the property is set up for restaurant use, including concepts such as a restaurant, bar and grill, or high-volume casual dining.
Key Highlights
- 7,042 SF property along Loop 289 in Lubbock
- Zoned Auto Urban Commercial
- Currently configured as a 2nd generation restaurant buildout with existing infrastructure
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
$79,571
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
3.20%
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%
$1,591,420
$1.6M
Cap Rate 7%
$1,136,729
$1.1M
Cap Rate 9%
$884,122
$884.1K
Market Conditions
NOI Build-Up for 7,042 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
$114.1K $16.20/SF
− Vacancy
−$8.0K −$1.13/SF
EGI
$106.1K $15.07/SF
− OpEx
−$26.5K −$3.77/SF
NOI
$79.6K $11.30/SF
Area
Lubbock, TX
Vacancy
7.00%
Lease Rate
$16.20 /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%
$1,591,420
Cap Rate 7%
$1,136,729
Cap Rate 9%
$884,122
Alternative Uses
Best Use
Specialty Retail
$1.14M
$994.6K – $1.33M
NOI $79,571 @ 7.0% cap · market cap 3.20%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.78M
$1.55M – $2.07M
NOI $124,272 @ 7.0% cap · market cap 4.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
70,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
1,303
Businesses Nearby
395k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 39%
Shops & Services 29%
Apparel 18%
Groceries 9%
Hobby Lobby
Shops & Services
90,802 visits/mo
0.4 miles
Chick-fil-A
Dining
42,941 visits/mo
0.3 miles
Spec's
Groceries
36,554 visits/mo
0.4 miles
Old Navy
Apparel
25,982 visits/mo
0.1 miles
Ross Dress for Less
Apparel
24,416 visits/mo
0.1 miles
Demographics for 79414, TX
17,537
Population
9,219
Households
1.9
Avg Household Size
32
Median Age
25%
College-Educated
89%
High-School Grad
3.2 sq mi
ZIP Area
5,480
Density / Sq Mi
$49,637
Median Household Income
$32,127
Median Earnings
$1,100
Median Rent
$150,500
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.
Similar Off Market Nearby
- Furs — 6001 Slide Rd, Lubbock, TX 79414
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Large-format restaurant space is zoned Auto Urban Commercial and offers an existing 2nd generation buildout for a new operator.
Where is this conventional restaurant located?
The property is located at 4950 S Loop 289 Lubbock, TX.
What is the asking price?
The asking price for this property is $2,490,000.
What are key features of this property?
This property features: 7,042 SF property along Loop 289 in Lubbock; Zoned Auto Urban Commercial; Currently configured as a 2nd generation restaurant buildout with existing infrastructure
