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Income Producing Restaurant Asset 4323 S Interstate 35 98 Room Hotel Austin, TX 78744 $4,250,000 ($43,367/Room) 5.22% Cap Rate
Investment Highlights
- Five-Year Lease Income with 3% annual escalations
- High traffic Count with 135,000 cars per day on South I-35
- Full NNN lease with Base Rent of $222,000 per year
- Investment includes Building and land as well as all FF&E in Restaurant
Executive Summary
Opportunity to acquire a stabilized, single-tenant, income-producing asset in a high-visibility South Austin corridor.
This offering represents the acquisition of
secure lease cash flow backed by a freestanding building on one of Austin’s most
heavily trafficked thoroughfares.
Investment Highlights
Year One CAP Rate: 5.22%
Annual Rent Increases: 3%
Average CAP Rate Over Initial Term: ~5.54%
Asset Type: Free-Standing Retail Building
Traffic Exposure: ±135,000 vehicles per day
(IH-35)
Location: Prime South IH-35 frontage
Cash Flow Profile:
The investment delivers predictable income growth through structured 3% annual escalations, providing built-in yield
enhancement over the lease term. The steady increase in rental income supports long-term value preservation and
improved overall return metrics compared to flat-rent structures.
Real Estate Fundamentals
Direct frontage and visibility along IH-35
High daily traffic counts (±135,000 VPD)
Strong surrounding retail and residential density
Positioned within one of Austin’s primary growth corridors
Investment Thesis:
While cap rates in today’s market may trend higher, this asset reflects a stability premium driven by:
Prime freeway frontage
Strong tenant visibility and access
Structured rent growth
Desirable Austin MSA location
This offering is not the sale of a restaurant business, but the acquisition of a durable, escalating cash flow secured by
strategically located real estate.
This offering represents the acquisition of
secure lease cash flow backed by a freestanding building on one of Austin’s most
heavily trafficked thoroughfares.
Investment Highlights
Year One CAP Rate: 5.22%
Annual Rent Increases: 3%
Average CAP Rate Over Initial Term: ~5.54%
Asset Type: Free-Standing Retail Building
Traffic Exposure: ±135,000 vehicles per day
(IH-35)
Location: Prime South IH-35 frontage
Cash Flow Profile:
The investment delivers predictable income growth through structured 3% annual escalations, providing built-in yield
enhancement over the lease term. The steady increase in rental income supports long-term value preservation and
improved overall return metrics compared to flat-rent structures.
Real Estate Fundamentals
Direct frontage and visibility along IH-35
High daily traffic counts (±135,000 VPD)
Strong surrounding retail and residential density
Positioned within one of Austin’s primary growth corridors
Investment Thesis:
While cap rates in today’s market may trend higher, this asset reflects a stability premium driven by:
Prime freeway frontage
Strong tenant visibility and access
Structured rent growth
Desirable Austin MSA location
This offering is not the sale of a restaurant business, but the acquisition of a durable, escalating cash flow secured by
strategically located real estate.
Financial Summary (Actual - 2025) Click Here to Access |
Annual | Annual Per SF |
|---|---|---|
| Gross Rental Income |
$99,999
|
$9.99
|
| Other Income |
-
|
-
|
| Vacancy Loss |
-
|
-
|
| Effective Gross Income |
$99,999
|
$9.99
|
| Net Operating Income |
-
|
-
|
Financial Summary (Actual - 2025) Click Here to Access
| Gross Rental Income | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Other Income | |
|---|---|
| Annual | - |
| Annual Per SF | - |
| Vacancy Loss | |
|---|---|
| Annual | - |
| Annual Per SF | - |
| Effective Gross Income | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Net Operating Income | |
|---|---|
| Annual | - |
| Annual Per SF | - |
Property Facts
| Price | $4,250,000 | Lot Size | 1.00 AC |
| Price Per Room | $43,367 | Building Size | 8,691 SF |
| Sale Type | Investment | No. Rooms | 98 |
| Cap Rate | 5.22% | No. Stories | 1 |
| Sale Condition | 1031 Exchange | Year Built/Renovated | 1973/2018 |
| Property Type | Hospitality | Parking Ratio | 12.66/1,000 SF |
| Property Subtype | Hotel | Corridor | Interior |
| Building Class | B | Opportunity Zone |
Yes
|
| Zoning | F1 - Restaurant and Bar | ||
| Price | $4,250,000 |
| Price Per Room | $43,367 |
| Sale Type | Investment |
| Cap Rate | 5.22% |
| Sale Condition | 1031 Exchange |
| Property Type | Hospitality |
| Property Subtype | Hotel |
| Building Class | B |
| Lot Size | 1.00 AC |
| Building Size | 8,691 SF |
| No. Rooms | 98 |
| No. Stories | 1 |
| Year Built/Renovated | 1973/2018 |
| Parking Ratio | 12.66/1,000 SF |
| Corridor | Interior |
| Opportunity Zone |
Yes |
| Zoning | F1 - Restaurant and Bar |
Amenities
- Restaurant
- On-Site Bar
- Meeting Event Space
- Public Access Wifi
- Smoke Detector
Room Mix Information
| Description | No. Rooms | Daily Rate | SF |
|---|---|---|---|
| Guest Room | 98 | $129.00 | - |
1 1
Property Taxes
| Parcel Number | 319247 | Improvements Assessment | $5,193,040 |
| Land Assessment | $3,006,960 | Total Assessment | $8,200,000 |
Property Taxes
Parcel Number
319247
Land Assessment
$3,006,960
Improvements Assessment
$5,193,040
Total Assessment
$8,200,000
Contacts
-
Allan Hanson -
Mark Mellon-Werch -
Berkshire Hathaway Home Services Texas Realty
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Income Producing Restaurant Asset | 4323 S Interstate 35
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