Drive-Through Restaurant
For Sale
$200,000
8207 Mateo Escobar Street, Monte Alto, TX 78538
Restaurant-ready property with drive-through, tile flooring, three private bathrooms, and a walk-in freezer.
Property Size1,764 SF
Price / SF$113.38
Days on Market239
Property Features for 8207 Mateo Escobar Street
General Information
Standard status
Active
Size
1,764 SF
Property subtype
General Commercial
Additional Details
Business Included
Yes
Grease Trap
Yes
Taxes and HOA fees
Annual Taxes
$3,984
Amenities
Central Air
15 Parking Spaces. Paved Driveway.
Handicapped Access. City Road, Paved Road.
Building Details
Year Built
1984
Listed By:
The Mbteam
(956) 357-4632
Source:
Xome
Added: Jan 9
Changed: Sep 1
Last Checked: Sep 5 at 4:52AM
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 Mbteam
Investment Insights
Based on property information with market context.
This drive-through restaurant building includes tile flooring throughout and a functional interior layout designed for restaurant or kitchen-driven use. The property has three private bathrooms, including handicap accessibility, and supports foodservice operations with a walk-in freezer, a commercial sink, and a grease trap.
Situated on a busy corner lot in Monte Alto, Texas, the site is configured for drive-through service and customer access.
The available improvements and equipment provide an operational kitchen base for a new concept, with restrooms already built out and the back-of-house plumbing and storage equipment in place.
Situated on a busy corner lot in Monte Alto, Texas, the site is configured for drive-through service and customer access.
The available improvements and equipment provide an operational kitchen base for a new concept, with restrooms already built out and the back-of-house plumbing and storage equipment in place.
Key Highlights
- Restaurant‑ready commercial property with drive‑through on a busy corner lot in Monte Alto
- Tile flooring throughout
- Three private bathrooms, including handicap accessibility
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
$9,282
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
4.64%
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%
$185,640
$185.6K
Cap Rate 7%
$132,600
$132.6K
Cap Rate 9%
$103,133
$103.1K
Market Conditions
NOI Build-Up for 1,764 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
$14.2K $8.04/SF
− Vacancy
−$922 −$0.52/SF
EGI
$13.3K $7.52/SF
− OpEx
−$4.0K −$2.26/SF
NOI
$9.3K $5.26/SF
Area
Hidalgo County, TX
Vacancy
6.50%
Lease Rate
$8.04 /SF/Yr
Expense Ratio
30.00%
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%
$185,640
Cap Rate 7%
$132,600
Cap Rate 9%
$103,133
Alternative Uses
Best Use
Specialty Retail
$365.7K
$320.0K – $426.7K
NOI $25,601 @ 7.0% cap · market cap 12.80%
Second Best
Industrial
$132.6K
$116.0K – $154.7K
NOI $9,282 @ 7.0% cap · market cap 4.64%
Theoretical Best
Hotel Hospitality
$1.33M
$1.16M – $1.55M
NOI $93,007 @ 7.0% cap · market cap 46.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Grease trap
Location Intelligence
Trade Area within ½ mile
55
Businesses Nearby
9k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar General
Shops & Services
6,302 visits/mo
0.2 miles
Watermill Express
Shops & Services
2,228 visits/mo
0.2 miles
Demographics for 78538, TX
12,278
Population
3,745
Households
3.3
Avg Household Size
30
Median Age
11%
College-Educated
65%
High-School Grad
67.0 sq mi
ZIP Area
183
Density / Sq Mi
$38,904
Median Household Income
$29,442
Median Earnings
$586
Median Rent
$87,300
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?
Drive through restaurant - Restaurant-ready property with drive-through, tile flooring, three private bathrooms, and a walk-in freezer.
Where is this drive through restaurant located?
The property is located at 8207 Mateo Escobar Street Monte Alto, TX.
What is the asking price?
The asking price for this property is $200,000.
What are key features of this property?
This property features: Restaurant‑ready commercial property with drive‑through on a busy corner lot in Monte Alto; Tile flooring throughout; Three private bathrooms, including handicap accessibility
