Restaurant and Retail
For Sale
$375,000
712 Bicentennial Boulevard, McAllen, TX 78504
Storefront restaurant space with a sizable kitchen, office, walk-in freezer, and grease trap, plus parking in front and rear.
Property Size1,878 SF
Price / SF$199.68
Days on Market178
Property Features for 712 Bicentennial Boulevard
General Information
Standard status
Active
Size
1,878 SF
Property subtype
General Commercial
Additional Details
Business Included
Yes
Grease Trap
Yes
Taxes and HOA fees
Annual Taxes
$7,000
Amenities
Central Air, Electric
3
6 Parking Spaces. Paved Driveway.
Security Lighting. City Road, US Highway.
Building Details
Year Built
2004
Listing Agency:
Keller Williams Realty Rgv
(956) 578-5733
Listed By:
Ronaldo Lacayo
(956) 578-5733
Source:
Xome
Added: Feb 11
Changed: Aug 7
Last Checked: Aug 7 at 1:33AM
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 Keller Williams Realty Rgv
Investment Insights
Based on property information with market context.
This for-sale storefront offers a ready-to-operate food service buildout with a nice open customer area, an included office, and a good size kitchen area. The property also features a walk-in freezer for storage or display, an oven, and an existing grease trap.
The premises are located on busy Bicentennial Boulevard, providing high visibility. Parking is available both in front of the building and in the back.
The layout has supported use as a bakery and can also be adapted for other restaurant, office, and retail concepts, subject to applicable requirements.
The premises are located on busy Bicentennial Boulevard, providing high visibility. Parking is available both in front of the building and in the back.
The layout has supported use as a bakery and can also be adapted for other restaurant, office, and retail concepts, subject to applicable requirements.
Key Highlights
- Storefront space previously used as a bakery; open space with office and a sizable kitchen area
- Kitchen includes an oven and a walk‑in freezer for storage/display
- Includes a grease trap
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
$28,720
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
7.66%
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%
$574,400
$574.4K
Cap Rate 7%
$410,286
$410.3K
Cap Rate 9%
$319,111
$319.1K
Market Conditions
NOI Build-Up for 1,878 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
$40.6K $21.60/SF
− Vacancy
−$2.3K −$1.21/SF
EGI
$38.3K $20.39/SF
− OpEx
−$9.6K −$5.10/SF
NOI
$28.7K $15.29/SF
Area
McAllen, TX
Vacancy
5.60%
Lease Rate
$21.60 /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%
$574,400
Cap Rate 7%
$410,286
Cap Rate 9%
$319,111
Alternative Uses
Best Use
Specialty Retail
$410.3K
$359.0K – $478.7K
NOI $28,720 @ 7.0% cap · market cap 7.66%
Second Best
Retail
$382.9K
$335.1K – $446.8K
NOI $26,805 @ 7.0% cap · market cap 7.15%
Theoretical Best
Office A
$510.0K
$446.2K – $595.0K
NOI $35,697 @ 7.0% cap · market cap 9.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Grease trap
Location Intelligence
Trade Area within ½ mile
1,130
Businesses Nearby
Explore this area
Business Placement
Demographics for 78504, TX
56,830
Population
21,417
Households
2.7
Avg Household Size
35
Median Age
40%
College-Educated
86%
High-School Grad
19.6 sq mi
ZIP Area
2,899
Density / Sq Mi
$77,627
Median Household Income
$41,632
Median Earnings
$1,178
Median Rent
$203,900
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?
Commercial kitchen - Storefront restaurant space with a sizable kitchen, office, walk-in freezer, and grease trap, plus parking in front and rear.
Where is this commercial kitchen located?
The property is located at 712 Bicentennial Boulevard McAllen, TX.
What is the asking price?
The asking price for this property is $375,000.
What are key features of this property?
This property features: Storefront space previously used as a bakery; open space with office and a sizable kitchen area; Kitchen includes an oven and a walk‑in freezer for storage/display; Includes a grease trap
