New Four-Unit
For Sale
$510,000
105 E Royal Palm Drive, Mercedes, TX 78570
Residential Income, Mercedes, TX
Property Size4,400 SF
Lot Size0.23 Acres
Price / SF$115.91
Days on Market83
Property Features for 105 E Royal Palm Drive
General Information
Property type
Residential Multi Family
Property subtype
Quadruplex
Property condition
Under Construction
Parking
8
Parking features
Other
Appliances
Electric Water Heater, Dryer, Microwave, Refrigerator, Stove/Range, Washer
Subdivision
Summer Breeze
Lot features
Curb & Gutters
Elementary school
JFK
Middle school
Mercedes Junior High
High school
Mercedes H.S.
Elementary school district
Mercedes ISD
Middle school district
Mercedes ISD
High school district
Mercedes ISD
Directions
From expressway 83 head toward Mercedes, exit at Texas Avenue (FM 491), continue north on Texas Avenue, turn right onto East 2nd Street, then turn right onto Royal Palm Drive.
Standard status
Active
APN
S685100000005600
Size
4,400 SF
Lot size
0.23 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
100
HOA Fee
$680 Annually
Utilities
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
2025
Floors in Building
1
Number of units
4
Building materials
Stucco
Listing Agency:
Effective Real Estate
(956) 322-8522
Listed By:
Ryan J. Mcdaniel
(956) 299-2111
Added: Jul 7
Changed: Sep 20
Last Checked: Sep 27 at 5:06PM
MLS# 494892
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This four-unit residential property contains 4,400 square feet across four matching apartments, each configured with 3 bedrooms and 2 bathrooms. The units include appliances, carports, central heating, central air conditioning, and stucco construction. Public water serves the property, which occupies 0.2328 acres in Mercedes, Texas.
The property is positioned approximately two minutes from Expressway 83, with the Livestock Show Grounds and Rio Grande Valley Outlets identified nearby. Its 2025 construction provides a recently developed multifamily configuration with consistent layouts throughout the building.
The property is positioned approximately two minutes from Expressway 83, with the Livestock Show Grounds and Rio Grande Valley Outlets identified nearby. Its 2025 construction provides a recently developed multifamily configuration with consistent layouts throughout the building.
Key Highlights
- Four units, each with 3 bedrooms and 2 bathrooms
- 4,400‑square‑foot multifamily property on 0.2328 acres
- Appliances and carports included for all four units
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
$38,478
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
7.54%
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%
$769,560
$769.6K
Cap Rate 7%
$549,686
$549.7K
Cap Rate 9%
$427,533
$427.5K
Market Conditions
NOI Build-Up for 4,400 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
$61.8K $14.04/SF
− Vacancy
−$6.8K −$1.55/SF
EGI
$55.0K $12.49/SF
− OpEx
−$16.5K −$3.75/SF
NOI
$38.5K $8.74/SF
Area
Hidalgo County, TX
Vacancy
11.02%
Lease Rate
$14.04 /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%
$769,560
Cap Rate 7%
$549,686
Cap Rate 9%
$427,533
Alternative Uses
Best Use
Multifamily LT 5
$549.7K
$481.0K – $641.3K
NOI $38,478 @ 7.0% cap · market cap 7.54%
Second Best
Apartment 5plus
$506.1K
$442.8K – $590.4K
NOI $35,426 @ 7.0% cap · market cap 6.95%
Theoretical Best
Hotel Hospitality
$3.31M
$2.90M – $3.87M
NOI $231,990 @ 7.0% cap · market cap 45.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
4
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
154
Businesses Nearby
Explore this area
Business Placement
Demographics for 78570, TX
32,950
Population
10,701
Households
3.1
Avg Household Size
30
Median Age
12%
College-Educated
61%
High-School Grad
75.2 sq mi
ZIP Area
438
Density / Sq Mi
$39,890
Median Household Income
$22,648
Median Earnings
$686
Median Rent
$83,400
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Quadplex - Four residential units include appliances, carports, and central HVAC.
Where is this quadplex located?
The property is located at 105 E Royal Palm Drive Mercedes, TX.
What is the asking price?
The asking price for this property is $510,000.
What are key features of this property?
This property features: Four units, each with 3 bedrooms and 2 bathrooms; 4,400‑square‑foot multifamily property on 0.2328 acres; Appliances and carports included for all four units
