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MB106700529
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Velvet Oak Tavern

2221 W ALABAMA ST, Houston, TX 77098 · TABC MB106700529

Mixed Beverage Houston Market Enriched 2026-06-27
$808,239 Annual gross (L12M) ▲ 40.9% latest MoM Click for monthly detail
$67,353 Avg monthly ▲ 41.1% latest vs avg Click for monthly detail
~22% Est. net margin (likely) $181,046/yr est. net Click for cost model
$453k–$634k Est. acquisition range 0.67× annual gross (blended) Click for valuation methods
Liquor sales only — total revenue is higher
Every dollar on this page comes from Mixed Beverage Gross Receipts filings — the alcohol portion of total sales. For a Restaurant / Bar, liquor is typically only 25–45% of total business revenue. Restaurant. Total revenue is typically 2–4× our liquor figure. Estimated total revenue (rough): $1,796,087 – $3,232,956/year. Treat the valuation below as a screening estimate based on the alcohol portion alone.
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Executive Summary

Click to expand full narrative

Velvet Oak Tavern is a mixed-beverage licensed establishment at 2221 W ALABAMA ST, Houston, Texas (TABC MB106700529). Over the most recent 12 months it reported $808,239 in gross alcohol sales, averaging $67,353/month with a best month of $95,060. Sales mix: ~58% liquor · 40% beer · 3% wine. The building at this address is owned by LN HOLDINGS LLC (2,500 sqft, $2,108,171 assessed value per county records). Applying Texas bar cost benchmarks yields an estimated annual net of approximately $181,046 (~22% margin). Acquisition value is estimated at $453k–$634k across revenue-multiple, SDE-multiple, and cap-rate methods. All revenue figures are gross mixed-beverage receipts as filed with the Texas Comptroller; they exclude cash income such as cover charges, game machines, or merchandise.

Sales performance · last 12 months

Texas Comptroller mixed-beverage gross receipts actual

Annual gross
$808,239
Avg monthly
$67,353
Best month
$95,060
May 2026
Sales mix
58% Liq
40% Beer · 3% Wine

Property & occupancy

County public records + submarket comps

Building (landlord parcel)

Record ID0410170080050
Property owner (landlord)LN HOLDINGS LLC
Total building SF2,500
Assessed value$2,108,171

Velvet Oak Tavern's share

Est. base rent ~$29/sqft/yr · 3,500 sqft · Class A $8,568/mo
NNN CAM / insurance$1,285/mo
NNN property tax$2,108/mo
Personal property tax est — no BPP record $162/mo
Total occupancy $12,124/mo

Occupancy analysis

All-in occupancy cost is 18.0% of gross revenue. Industry benchmark for healthy bars is 6–10%; 12–15% is typical for premium submarkets; above 18% is unsustainable without very strong margins elsewhere.

Profit scenarios

Texas bar cost model applied to $808,239 gross revenue estimated

Best Case
No kitchen, efficient staffing, favorable lease
~32%
Revenue$808,239
COGS (24%)−$193,977
Labor (14%)−$113,153
Occupancy−$130,935
TX MB gross tax (6.7%)−$54,152
Utilities / ins / mktg (8%)−$64,659
Card surcharge net+$8,891
Net profit $260,253
Most Likely
Typical bar, light food program, full two-shift staffing
~22%
Revenue$808,239
COGS (27%)−$218,225
Labor (17%)−$137,401
Occupancy−$145,483
TX MB gross tax (6.7%)−$54,152
Utilities / ins / mktg (10%)−$80,824
Card surcharge net+$8,891
Net profit $181,046
Stressed
Heavy food, larger crew, higher rent
~11%
Revenue$808,239
COGS (30%)−$242,472
Labor (22%)−$177,813
Occupancy−$160,031
TX MB gross tax (6.7%)−$54,152
Utilities / ins / mktg (12%)−$96,989
Card surcharge net+$8,891
Net profit $85,673
Disclaimer: Revenue is mixed-beverage gross receipts from the Texas Comptroller — it does not include cash income like door charges, game machines, merchandise, or event rentals (which can add 10–25% for nightclubs). Cost ratios are industry benchmarks for Texas MB-permit bars. Rent is estimated from submarket comps; property tax is from county public records pro-rated by square footage. Actual profit depends on lease terms, staffing, owner salary, and one-time costs.

Owner income estimator

Split likely net profit across ownership estimated

TABC licensee Abbjr Enterprises LLC looking up officers…
2
Equal split (50% each)
Based on the "Most Likely" scenario net profit of $181,046/year. Actual owner income depends on salary draws, distributions, debt service, and tax structure. Consult an accountant for actual income projections.

Acquisition value estimate

Based on most-likely scenario (~$181,046 net) estimated

Revenue multiple
$404k–$647k
0.5–0.8× gross
SDE multiple
$453k–$634k
2.5–3.5× earnings
Cap rate
$549k–$724k
25–33%
Suggested range
$453k–$634k
blended estimate
The numbers above are liquor-only: bar-style multiples applied to mixed-beverage receipts. They're the right answer for a pure bar/lounge — but for a restaurant, this is just one slice of total enterprise value (the bar program). See the food-business estimate below.
Full-business estimate · Restaurant / Bar

If you're buying the whole restaurant, not just the bar program

We estimate this restaurant / bar pulls $1,796,087–$3,232,956/yr in total revenue (your liquor portion of $808,239 is roughly 25–45% of the total per industry benchmarks). Applied to that estimated total: revenue multiple 0.30–0.50×, net margin 10–15%, SDE multiple 2.5–4.0× (restaurant comps, not bar comps).

Estimated total revenue
$1,796k–$3,233k
food + liquor + service
Estimated net (10–15%)
$180k–$485k
restaurant margin
Full-business value
$494k–$1,778k
blended rev × SDE

Confidence on this estimate is lower than the liquor-only valuation above — we're inferring food revenue from category averages, not from this specific operator's books. A serious buyer should request actual P&Ls + a Schedule C / 1120S.

Federal court history

Public records · last checked 2026-06-24

No federal lawsuits — past or pending