Restaurant Building with Commercial
For Sale
$499,000
6701 Jackson Road, Pharr, TX 78577
Former restaurant with kitchen for sale on busy commercial corridor.
Property Size3,823 SF
Lot Size0.19 Acres
Price / SF$130.53
Days on Market101
Property Features for 6701 Jackson Road
General Information
Standard status
Active
Size
3,823 SF
Lot size
0.19 Acres
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$10,832
Amenities
Central Air, Electric
3
15 Parking Spaces. Paved Driveway.
Strip Mall, City Road, Paved Road.
Building Details
Year Built
2015
Listing Agency:
Big Realty
(956) 624-1891
Listed By:
Jose Aguilar
(956) 624-1891
Source:
Xome
Added: May 20
Changed: Aug 27
Last Checked: Aug 26 at 5:30AM
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 Big Realty
Investment Insights
Based on property information with market context.
This commercial property, built in 2015, is a former restaurant with a kitchen, presenting an opportunity for food service operators, investors, or entrepreneurs. The one-story, concrete block structure offers approximately 3,823 square feet of interior space and is situated on a 0.19-acre lot (8,400 sf). Previously operated as a full-service restaurant, it includes a commercial kitchen, restrooms, and central air conditioning. The open floor plan is suitable for restaurant, retail, or other commercial uses. The property offers visibility along S. Jackson Road, a busy commercial corridor in Pharr, and includes on-site parking. A rear area, currently used as warehouse space by the tenant, offers additional flexibility and potential for patio seating or rear parking. This property offers rental income with potential for owner-occupancy or future redevelopment.
Key Highlights
- Prime location on S. Jackson Road with excellent visibility.
- Equipped commercial kitchen suitable for food service operations.
- Built in 2015, one‑story concrete block structure with 3,823 sf interior space.
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
$24,428
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
4.90%
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%
$488,560
$488.6K
Cap Rate 7%
$348,971
$349.0K
Cap Rate 9%
$271,422
$271.4K
Market Conditions
NOI Build-Up for 3,823 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
$30.7K $8.04/SF
− Vacancy
−$2.0K −$0.52/SF
EGI
$28.7K $7.52/SF
− OpEx
−$4.3K −$1.13/SF
NOI
$24.4K $6.39/SF
Area
Hidalgo County, TX
Vacancy
6.50%
Lease Rate
$8.04 /SF/Yr
Expense Ratio
15.00%
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%
$488,560
Cap Rate 7%
$348,971
Cap Rate 9%
$271,422
Alternative Uses
Best Use
Specialty Retail
$792.6K
$693.5K – $924.7K
NOI $55,482 @ 7.0% cap · market cap 11.12%
Second Best
Retail
$737.4K
$645.2K – $860.3K
NOI $51,619 @ 7.0% cap · market cap 10.34%
Theoretical Best
Hotel Hospitality
$2.88M
$2.52M – $3.36M
NOI $201,568 @ 7.0% cap · market cap 40.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
202
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78577, TX
79,937
Population
26,568
Households
3
Avg Household Size
30
Median Age
18%
College-Educated
70%
High-School Grad
26.0 sq mi
ZIP Area
3,075
Density / Sq Mi
$49,768
Median Household Income
$28,186
Median Earnings
$988
Median Rent
$111,500
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Mexican Buffet Los Chilaquiles — 6901 S Jackson Rd, Pharr, TX 78577
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Former restaurant with kitchen for sale on busy commercial corridor.
Where is this conventional restaurant located?
The property is located at 6701 Jackson Road Pharr, TX.
What is the asking price?
The asking price for this property is $499,000.
What are key features of this property?
This property features: Prime location on S. Jackson Road with excellent visibility.; Equipped commercial kitchen suitable for food service operations.; Built in 2015, one‑story concrete block structure with 3,823 sf interior space.
