Commercial Building with
For Sale
$2,250,000
513 N Tom Gill Road Penitas, Penitas, TX 78576
Masonry-front commercial building plus an on-site drive-through restaurant with over 70 parking spaces on 1.6 acres.
Property Size9,014 SF
Price / SF$249.61
Days on Market53
Property Features for 513 N Tom Gill Road Penitas
General Information
Standard status
Active
Size
9,014 SF
Total Parking Spaces
75
Taxes and HOA fees
Annual Taxes
$14,812
Amenities
Concrete,Other,Porcelain Tile,Painted/Stained
true
1235
Energy Features (Double Pane Windows)
HidalgoCAD
Separate Water Meters
1.6105
75
128'X569'
Pole Sign
Blacktop,Enclosed
Other
City Street,FM Road,Highway
9014
false
Building Details
Building Size
9,014 SF
Year Built
2009
Stories
1
Listed By:
Diego Silva
(956) 625-0050
Source:
Goldenvalley-realestate
Added: Jul 14
Changed: Aug 21
Last Checked: Sep 4 at 2:12AM
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 Diego Silva
Investment Insights
Based on property information with market context.
For sale is a commercial building totaling approximately +/-8,000 square feet, constructed with a solid masonry front façade and steel on the other sides. The property is currently being used as an event center, with several future contracts for the event use stated to convey with the sale (per the seller).
The site also includes a smaller +/-1,235-square-foot drive-through restaurant/sno-cone specialty shop on 1.605 acres, along with over 70 parking spaces. The property is located near banks, a Walmart Supercenter, and the growing East-West U.S. Highway 83 corridor.
The drive-through component is described as suitable for continued specialty retail use, or it could be repurposed as a drive-through pay center for other services, subject to applicable approvals.
The site also includes a smaller +/-1,235-square-foot drive-through restaurant/sno-cone specialty shop on 1.605 acres, along with over 70 parking spaces. The property is located near banks, a Walmart Supercenter, and the growing East-West U.S. Highway 83 corridor.
The drive-through component is described as suitable for continued specialty retail use, or it could be repurposed as a drive-through pay center for other services, subject to applicable approvals.
Key Highlights
- Commercial property at 513 N Tom Gill Rd on 1.6105 acres
- 9014 total building area with masonry front facade and steel sides; year built 2009
- Event center setup plus an additional 1,235 SF drive‑through restaurant/sno‑cone specialty shop
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
$130,818
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
5.81%
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%
$2,616,360
$2.6M
Cap Rate 7%
$1,868,829
$1.9M
Cap Rate 9%
$1,453,533
$1.5M
Market Conditions
NOI Build-Up for 9,014 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
$185.0K $20.52/SF
− Vacancy
−$10.5K −$1.17/SF
EGI
$174.4K $19.35/SF
− OpEx
−$43.6K −$4.84/SF
NOI
$130.8K $14.51/SF
Area
Hidalgo County, TX
Vacancy
5.70%
Lease Rate
$20.52 /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%
$2,616,360
Cap Rate 7%
$1,868,829
Cap Rate 9%
$1,453,533
Alternative Uses
Best Use
Specialty Retail
$1.87M
$1.64M – $2.18M
NOI $130,818 @ 7.0% cap · market cap 5.81%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$6.79M
$5.94M – $7.92M
NOI $475,263 @ 7.0% cap · market cap 21.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
315
Businesses Nearby
171k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 53%
Dining 23%
Shops & Services 20%
Electronics 3%
Walmart
Superstores
90,183 visits/mo
0.3 miles
Dollar Tree
Shops & Services
22,230 visits/mo
0.4 miles
Dutch Bros. Coffee
Dining
12,425 visits/mo
0.4 miles
SONIC Drive In
Dining
9,456 visits/mo
0.4 miles
Dollar General
Shops & Services
8,321 visits/mo
0.3 miles
Demographics for 78576, TX
13,901
Population
3,362
Households
4.1
Avg Household Size
25
Median Age
6%
College-Educated
53%
High-School Grad
58.2 sq mi
ZIP Area
239
Density / Sq Mi
$48,205
Median Household Income
$21,962
Median Earnings
$629
Median Rent
$116,600
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 - Masonry-front commercial building plus an on-site drive-through restaurant with over 70 parking spaces on 1.6 acres.
Where is this drive through restaurant located?
The property is located at 513 N Tom Gill Road Penitas Penitas, TX.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: Commercial property at 513 N Tom Gill Rd on 1.6105 acres; 9014 total building area with masonry front facade and steel sides; year built 2009; Event center setup plus an additional 1,235 SF drive‑through restaurant/sno‑cone specialty shop
