Restaurant Property with Industrial
For Sale
$749,000
5550 Padre Island Hwy., Brownsville, TX 78521
Equipped restaurant facility with a separate building for office or storage use.
Property Size3,434 SF
Price / SF$218.11
Days on Market43
Property Features for 5550 Padre Island Hwy.
General Information
Standard status
Active
Size
3,434 SF
Property subtype
Multi-Family
Additional Details
Gross Income
$54,000
Building Details
Year Built
201
Buildings
2
Tenancy
Single
Listing Agency:
RE/MAX Elite Brownsville
(956) 701-0623
Listed By:
RAUL AGUILAR · License #565_630
Source:
Accessrealtyrgv
Added: Jul 21
Changed: Aug 31
Last Checked: Aug 31 at 7:31PM
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 RE/MAX Elite Brownsville
Investment Insights
Based on property information with market context.
The property includes a 3,434-square-foot primary building configured for restaurant operations, with an industrial kitchen and restaurant equipment in place. A separate 400-square-foot structure sits behind the main building and can support office or storage functions.
The property is leased to a restaurant operator under a lease extending through May 2027. Its address is 5550 Padre Island Hwy., Brownsville, TX 78521, providing an established restaurant-use location with existing improvements and an auxiliary building.
The property is leased to a restaurant operator under a lease extending through May 2027. Its address is 5550 Padre Island Hwy., Brownsville, TX 78521, providing an established restaurant-use location with existing improvements and an auxiliary building.
Key Highlights
- 3,434‑square‑foot main restaurant building
- Industrial kitchen and restaurant equipment included
- Separate 400‑square‑foot office or storage building
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
$35,010
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
4.67%
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%
$700,200
$700.2K
Cap Rate 7%
$500,143
$500.1K
Cap Rate 9%
$389,000
$389.0K
Market Conditions
NOI Build-Up for 3,434 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
$49.4K $14.40/SF
− Vacancy
−$2.8K −$0.81/SF
EGI
$46.7K $13.59/SF
− OpEx
−$11.7K −$3.40/SF
NOI
$35.0K $10.20/SF
Area
Brownsville, 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%
$700,200
Cap Rate 7%
$500,143
Cap Rate 9%
$389,000
Alternative Uses
Best Use
Specialty Retail
$500.1K
$437.6K – $583.5K
NOI $35,010 @ 7.0% cap · market cap 4.67%
Second Best
Industrial
$229.5K
$200.8K – $267.8K
NOI $16,066 @ 7.0% cap · market cap 2.14%
Theoretical Best
Healthcare Medical
$591.3K
$517.4K – $689.8K
NOI $41,389 @ 7.0% cap · market cap 5.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
281
Businesses Nearby
36k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 92%
Home Improvements & Furnishings 8%
Sunoco
Shops & Services
12,611 visits/mo
0.4 miles
Dollar General
Shops & Services
7,887 visits/mo
0.2 miles
Stripes
Shops & Services
6,673 visits/mo
0.4 miles
First Cash Pawn
Shops & Services
3,066 visits/mo
0.4 miles
McCoy's Building Supply
Home Improvements & Furnishings
2,780 visits/mo
0.1 miles
Demographics for 78521, TX
88,708
Population
29,576
Households
3
Avg Household Size
32
Median Age
15%
College-Educated
62%
High-School Grad
93.7 sq mi
ZIP Area
947
Density / Sq Mi
$41,276
Median Household Income
$24,781
Median Earnings
$864
Median Rent
$90,500
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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Equipped restaurant facility with a separate building for office or storage use.
Where is this conventional restaurant located?
The property is located at 5550 Padre Island Hwy. Brownsville, TX.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 3,434‑square‑foot main restaurant building; Industrial kitchen and restaurant equipment included; Separate 400‑square‑foot office or storage building
