Leased Restaurant
For Sale
$350,000
711 W Rancier Ave, Killeen, TX 76541
Restaurant property sold while currently leased, listed at $350,000.
Property Size1,750 SF
Price / SF$200
Days on Market112
Property Features for 711 W Rancier Ave
General Information
Standard status
Active
Size
1,750 SF
Property subtype
Commercial
Building Details
Year Built
1965
Listing Agency:
Jim Wright Company
Listed By:
Jim Wright (254) 526-5117 · License #0181945
(254) 289-3145
Source:
Homeguidecentraltexas
Added: May 25
Changed: Sep 9
Last Checked: Sep 13 at 12:05PM
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 Jim Wright Company
Investment Insights
Based on property information with market context.
This is a leased restaurant property being offered for sale. The asset is classified as a conventional restaurant/commercial real estate use and is currently under lease.
The property is located at 711 W Rancier Ave in Killeen, Texas. Public remarks also note BikeScore of 51 (Bikeable) and WalkScore of 61 (Somewhat Walkable).
As presented, the key commercial consideration is that the restaurant property will be sold with its existing lease in place.
The property is located at 711 W Rancier Ave in Killeen, Texas. Public remarks also note BikeScore of 51 (Bikeable) and WalkScore of 61 (Somewhat Walkable).
As presented, the key commercial consideration is that the restaurant property will be sold with its existing lease in place.
Key Highlights
- Restaurant property built in 1965
- Property is currently leased
- Listed for $350,000
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
$25,436
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
7.27%
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%
$508,720
$508.7K
Cap Rate 7%
$363,371
$363.4K
Cap Rate 9%
$282,622
$282.6K
Market Conditions
NOI Build-Up for 1,750 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
$35.7K $20.40/SF
− Vacancy
−$1.8K −$1.02/SF
EGI
$33.9K $19.38/SF
− OpEx
−$8.5K −$4.85/SF
NOI
$25.4K $14.54/SF
Area
Killeen, TX
Vacancy
5.00%
Lease Rate
$20.40 /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%
$508,720
Cap Rate 7%
$363,371
Cap Rate 9%
$282,622
Alternative Uses
Best Use
Specialty Retail
$363.4K
$318.0K – $423.9K
NOI $25,436 @ 7.0% cap · market cap 7.27%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$420.3K
$367.8K – $490.4K
NOI $29,424 @ 7.0% cap · market cap 8.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,179
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 76541, TX
19,641
Population
10,207
Households
1.9
Avg Household Size
32
Median Age
12%
College-Educated
83%
High-School Grad
4.9 sq mi
ZIP Area
4,008
Density / Sq Mi
$36,739
Median Household Income
$27,869
Median Earnings
$858
Median Rent
$97,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Similar Off Market Nearby
- International Buffet Restaurant (IBR) — 605 N Gray St Ste 1, Killeen, TX 76541
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant property sold while currently leased, listed at $350,000.
Where is this conventional restaurant located?
The property is located at 711 W Rancier Ave Killeen, TX.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Restaurant property built in 1965; Property is currently leased; Listed for $350,000
