The $600k real estate ask is roughly 2x fair value. It's a 3.4% cap on underwritten NOI, $934/sf on a 642 sf box built in 1980, and nearly double the county's own $308,674 assessment. The business ask is small enough to be noise — the whole negotiation is the dirt. Every structure below is priced off what the combined asset can actually service, because once you own both, rent is money you pay yourself.
| Metric | At $650k ask | At $340k target |
|---|---|---|
| Cap rate on RE (underwritten NOI ~$20.7k) | 3.4% | 6.9% |
| Price per sf (642 sf NLA) | $934 | $467 |
| vs. TAD 2026 assessment ($308,674) | 194% | 97% |
| Annual debt service (SBA 90% LTV, 25yr, ~10.25%) | $65.0k | $34.0k |
| DSCR @ $250k shop sales | 0.59 | 1.33 |
| Property tax after reassessment to price | ~$13.1k/yr | ~$6.6k/yr |
Texas reassesses to purchase price — pay $600k and the tax bill nearly doubles from $6,749, cutting NOI a further ~$6.4k/yr. The ask literally destroys its own yield.
| Parcel | TAD 727504 · Donna Addition Blk 1 Lot 1 |
| Building | 642 sf GBA = NLA (verified on TAD card PDF) |
| Land | 15,864 sf / 0.3642 ac corner pad |
| Built | 1980 · former Citgo / 7-Eleven pad |
| 2026 assessed | $308,674 (land $196k / imp $113k) |
| 2025 tax levy | $6,748.79 actual (2.187% eff.) |
| Debt | Free & clear — Bank of Hope release 3/2022, no later lien indexed |
| RE owner | KS Plaza 3 Inc (TX, formed 4/2016 to buy this pad) |
| Principal | Ki Sook Yi — sole officer, 2–3 pad landlord, no debt pressure |
| Operator | H & L Creative Food Corp (tenant only) |
| Their equipment | BPP assessed $7,608 — ~$42k of the $50k ask is goodwill + lease |
| Rent | $3,000/mo gross incl. NNN/CAM = $36k/yr = $56/sf (high for 1980 Pantego) |
| NOI | ~$20.7k underwritten / ~$24k broker-style |
TCEQ registry check is done and it's a hit. LPST case ID 91095 — "Quik Mart 30460", 3541 W Pioneer Pkwy (RN106972532), opened 1986, responsible party Southland Corp — matching the TAD Citgo → Southland #30460 / 7-Eleven ownership chain. Case status is INACTIVE (TCEQ closed it), and the site also carries an inactive 7-Eleven PST tank registration (#9153), consistent with tanks removed. Two catches: (1) pre-1990 closures used weaker cleanup standards — pull the closure letter before trusting it; (2) Circle D Food Mart at 3601 W Pioneer, ~350 ft west, still operates 3 active USTs, an offsite migration question a Phase I will flag. Net: a Phase I ESA flags this as a REC guaranteed, some lenders will push to Phase II, and every future buyer of this pad inherits the same file. A closed case is survivable — but a $600k ask on a listed former-LPST gas station pad is not. This is your hardest price lever.
| Comp | Size | Asking |
|---|---|---|
| 2400 W Pioneer Pkwy, Pantego (Four Seasons Plaza, 1984) | 1,200–2,400 sf | $12.00 NNN |
| 2401 W Pioneer Pkwy, Pantego (Pecan Park) | 1,500 sf | $16.50 |
| 903–911A W Pioneer Pkwy, Arlington (Ashbury Plaza) | 3,500+ sf | $5.01 |
| 130 E Bardin Rd, Arlington | 1,500–1,880 sf | $15.00 |
| 1000 W Arkansas Ln (Cooper St Commons) | 1,200–2,528 sf | $7.23 |
| Subject — 3541 W Pioneer (gross, incl. NNN) | 642 sf | $56.00 |
Pantego inline retail averages ~$10/sf, Arlington ~$19–23/sf. Small freestanding pads always price above inline, and gross-vs-NNN narrows the gap (~$44–48/sf NNN-equivalent) — but the subject rent is still ~2.4–3.4x the corridor. Two implications: the in-place $36k/yr rent is at-risk income no other tenant replaces (kills any cap-rate defense of $600k), and post-purchase you should underwrite your own occupancy at market, not at $3k/mo. Comp caveat: LoopNet/Crexi rates came via search snippets (bot-walled) — verify the two Pioneer Pkwy comps before quoting them in negotiation.
Financing basis for all scenarios unless noted: SBA 7(a), 10% down, 25-year amortization (RE is majority of proceeds), ~10.25%. Shop cash flow modeled as EBITDA before rent at 22% of sales (owner-operated; unverified until we see the books). Owner property costs after purchase: reassessed tax + ~$2k insurance + ~$1.5k reserves.
Combined purchase price vs annual shop sales. SBA 90% LTV, 25-yr am, ~10.25%; EBITDA-before-rent at 22% of sales; reassessed tax included. Green ≥ 1.25 (bankable) · yellow 1.0–1.25 (fragile) · red < 1.0 (loses money).
| Combined price | $200k sales | $250k | $300k | $350k |
|---|---|---|---|---|
| $340k (target) | 1.00 | 1.33 | 1.65 | 1.98 |
| $400k | 0.82 | 1.10 | 1.37 | 1.65 |
| $450k | 0.71 | 0.95 | 1.19 | 1.44 |
| $500k | 0.61 | 0.83 | 1.05 | 1.27 |
| $575k | 0.50 | 0.70 | 0.89 | 1.08 |
| $650k (ask) | 0.42 | 0.59 | 0.76 | 0.93 |
Read it as: at the full $650k ask the deal loses money even at $350k sales. The target $340k is bankable anywhere above ~$240k sales. Sales verification (POS reports, not tax returns alone) moves you between columns — that's why the books come before any offer.
| # | Move | Why it works |
|---|---|---|
| 1 | Verify sales first. 12 mo of POS data + 2 yrs returns from the operator before any number moves. | Every column in the table above depends on it. |
| 2 | Tie up the business cheap, contingent. $40–45k, contingent on (a) lease assignment or (b) closing the RE. | Cross-contingency: you never own a business without the dirt or an acceptable lease. |
| 3 | Use the assignment moment. He needs her consent to assign — she learns her tenant is leaving no matter what. Arrive with the RE offer at that exact moment. | Her BATNA becomes a vacant 642 sf former gas station box, not a $36k/yr tenant. |
| 4 | Anchor with the record, not opinion. $308,674 county assessment, $6,749 tax levy, 3.4% cap at her ask, gas-station history requiring Phase I. | Public numbers are hard to argue with; her ask has no comp support at $934/sf. |
| 5 | Offer the carry as the concession. Open $300k cash-to-her-via-SBA; "I can do $325k if you carry 85% at 6%." | She trades headline price for income + tax deferral; you trade nothing you need. |
| 6 | Let environmental do the last 10%. The pad is a listed LPST site (case 91095, closed). Phase I is non-negotiable; demand the closure letter; price reduction or escrow holdback if the file is thin. | Confirmed, on the public record, and no other buyer escapes it — her ask is impaired for everyone, not just you. |