Operational Restaurant with Commercial
For Sale
$975,000
542 Graham, Tuscola, TX 79562
Established restaurant sale includes the business, building, equipment, and operating kitchen.
Property Size2,003 SF
Price / SF$486.77
Days on Market35
Property Features for 542 Graham
General Information
Standard status
Active
Size
2,003 SF
Additional Details
Business Included
Yes
Equipment Included
Yes
Building Details
Year Built
2009
Listing Agency:
The Prichard Group
(432) 978-6973
Listed By:
Chelynne Barkley
Source:
Tonyaharbin
Added: Jul 26
Changed: Aug 28
Last Checked: Aug 28 at 9:12PM
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 The Prichard Group
Investment Insights
Based on property information with market context.
This 2,003-square-foot restaurant property, built in 2009, is offered with the operating business and real estate. The interior includes a dining area and a commercial kitchen with preparation space, refrigeration, and installed restaurant equipment. The layout supports food preparation and customer service within the existing facility.
Located at 542 Graham in Tuscola, Texas, the property fronts a highly visible roadway and includes prominent signage and convenient access. The sale encompasses the building, business, equipment, and established restaurant operation, allowing continued use of the existing setup or adaptation to a different food-service concept.
Located at 542 Graham in Tuscola, Texas, the property fronts a highly visible roadway and includes prominent signage and convenient access. The sale encompasses the building, business, equipment, and established restaurant operation, allowing continued use of the existing setup or adaptation to a different food-service concept.
Key Highlights
- 2,003‑square‑foot restaurant property built in 2009
- Sale includes the operating business, real estate, building, and equipment
- Commercial kitchen with prep space and refrigeration
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
$35,621
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
3.65%
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%
$712,420
$712.4K
Cap Rate 7%
$508,871
$508.9K
Cap Rate 9%
$395,789
$395.8K
Market Conditions
NOI Build-Up for 2,003 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
$50.0K $24.96/SF
− Vacancy
−$2.5K −$1.25/SF
EGI
$47.5K $23.71/SF
− OpEx
−$11.9K −$5.93/SF
NOI
$35.6K $17.78/SF
Area
Taylor County, TX
Vacancy
5.00%
Lease Rate
$24.96 /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%
$712,420
Cap Rate 7%
$508,871
Cap Rate 9%
$395,789
Alternative Uses
Best Use
Specialty Retail
$508.9K
$445.3K – $593.7K
NOI $35,621 @ 7.0% cap · market cap 3.65%
Second Best
Industrial
$147.4K
$128.9K – $171.9K
NOI $10,315 @ 7.0% cap · market cap 1.06%
Theoretical Best
Multifamily LT 5
$19.59M
$17.14M – $22.86M
NOI $1,371,456 @ 7.0% cap · market cap 140.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
125
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79562, TX
5,264
Population
1,432
Households
3.7
Avg Household Size
40
Median Age
41%
College-Educated
95%
High-School Grad
114.7 sq mi
ZIP Area
46
Density / Sq Mi
$103,814
Median Household Income
$52,254
Median Earnings
$2,000
Median Rent
$239,100
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 - Established restaurant sale includes the business, building, equipment, and operating kitchen.
Where is this conventional restaurant located?
The property is located at 542 Graham Tuscola, TX.
What is the asking price?
The asking price for this property is $975,000.
What are key features of this property?
This property features: 2,003‑square‑foot restaurant property built in 2009; Sale includes the operating business, real estate, building, and equipment; Commercial kitchen with prep space and refrigeration
