Commercial Strip Building with Vacant Expansion
For Sale
$1,100,000
1312 Expressway 83, Penitas, TX 78576
COMMERCIAL - Penitas, TX
Property Size6,820 SF
Lot Size1.76 Acres
Price / SF$161.29
Days on Market125
Property Features for 1312 Expressway 83
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
15
Appliances
Electric Water Heater, Water Heater (Other Location)
Subdivision
Los Ejidos De Reynosa
Directions
Going West from McAllen Highway 83 (Not the Loop) continue West to Tom Gill Road, continuing West just after Tom Gill make a South/Left turn South to enter Buenavista Street, Building and Property are immediately to your right.
Standard status
Active
APN
L605000000032900
Size
6,820 SF
Lot size
1.76 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
22981
Utilities
Heating system
Central, Zoned, Electric (Heating)
Cooling system
Electric, Zoned, Central Air
Building Details
Year built
1983
Floors in Building
1
Building materials
Brick
Roof type
Flat, Tile
Listing Agency:
Limas Realty, LLC
(956) 383-5594
Listed By:
Jose (J.d) D. Villarreal
(956) 581-2400
Added: Apr 7
Changed: Aug 4
Last Checked: Aug 9 at 12:06PM
MLS# 501132
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.
Commercial strip building totaling approximately 6,820 SF on about 1.76 acres, with a brick exterior and a flat and tile roof. The property includes a building and parking lot, plus ample vacant land that can support expansion and/or a retail subdivision. Recent uses include a medical clinic, pharmacy/retail, and office/insurance.
The site offers immediate access from East-Bound Expressway 83 and Buenavista Street in Penitas. Interior systems include central, zoned electric heating and central air conditioning with electric and zoned cooling. Appliances listed include an electric water heater and a water heater (other location).
Built in 1983, the building and vacant land are positioned together for an owner looking to serve the surrounding community while retaining room to adapt the site layout over time.
The site offers immediate access from East-Bound Expressway 83 and Buenavista Street in Penitas. Interior systems include central, zoned electric heating and central air conditioning with electric and zoned cooling. Appliances listed include an electric water heater and a water heater (other location).
Built in 1983, the building and vacant land are positioned together for an owner looking to serve the surrounding community while retaining room to adapt the site layout over time.
Key Highlights
- Approximately 6,820 SF commercial strip building
- Brick construction with flat and tile roof
- About 1.76 acres with ample vacant land for expansion or subdivision
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
$100,911
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
9.17%
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%
$2,018,220
$2.0M
Cap Rate 7%
$1,441,586
$1.4M
Cap Rate 9%
$1,121,233
$1.1M
Market Conditions
NOI Build-Up for 6,820 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
$202.1K $29.64/SF
− Vacancy
−$34.0K −$4.98/SF
EGI
$168.2K $24.66/SF
− OpEx
−$67.3K −$9.86/SF
NOI
$100.9K $14.80/SF
Area
Hidalgo County, TX
Vacancy
16.80%
Lease Rate
$29.64 /SF/Yr
Expense Ratio
40.00%
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%
$2,018,220
Cap Rate 7%
$1,441,586
Cap Rate 9%
$1,121,233
Alternative Uses
Best Use
Office B
$1.63M
$1.43M – $1.90M
NOI $114,078 @ 7.0% cap · market cap 10.37%
Second Best
Healthcare Medical
$1.44M
$1.26M – $1.68M
NOI $100,911 @ 7.0% cap · market cap 9.17%
Theoretical Best
Hotel Hospitality
$5.14M
$4.49M – $5.99M
NOI $359,585 @ 7.0% cap · market cap 32.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
323
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78576, TX
13,901
Population
3,362
Households
4.1
Avg Household Size
25
Median Age
6%
College-Educated
53%
High-School Grad
58.2 sq mi
ZIP Area
239
Density / Sq Mi
$48,205
Median Household Income
$21,962
Median Earnings
$629
Median Rent
$116,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Flores Nursery & Floral — 916 Expressway 83, Penitas, TX 78576
- LMB Gifts and Flowers — 100 S Longoria St, Penitas, TX 78576
- Floristeria by EVENTOS ESQUEDA — 619 Tom Gill Rd #4, Penitas, TX 78576
Frequently Asked Questions
What type of property is this?
Storefront property - Brick commercial strip building with parking lot on about 1.76 acres and direct access from Expressway 83 in Penitas.
Where is this storefront property located?
The property is located at 1312 Expressway 83 Penitas, TX.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Approximately 6,820 SF commercial strip building; Brick construction with flat and tile roof; About 1.76 acres with ample vacant land for expansion or subdivision
