Single-Story Restaurant with
For Sale
$769,000
Pending
1501 W Business 83 Road, Weslaco, TX 78596
Commercial Sale, Weslaco, TX
Property Size4,212 SF
Lot Size0.52 Acres
Days on Market137
Property Features for 1501 W Business 83 Road
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
38
Appliances
Electric Water Heater
Subdivision
Westgate Center
Directions
From the expressway exit Westgate and go South. Go East on business 83. The property will be on the right.
Standard status
Pending
APN
W426000000000100
Size
4,212 SF
Lot size
0.52 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
7761
Utilities
Heating system
Central
Cooling system
Central Air
Building Details
Year built
1973
Floors in Building
1
Building materials
Wood Siding
Listing Agency:
Effective Real Estate
(956) 322-8522
Listed By:
Ryan J. Mcdaniel
(956) 299-2111
Added: May 14
Changed: Sep 7
Last Checked: Sep 27 at 7:06PM
MLS# 467444
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 single-story restaurant property includes 4,212 square feet of built-out space with a kitchen, walk-in refrigerator and freezer, stoves, fryers, dining booths, and bar fixtures. Central heating and cooling serve the building, which was constructed in 1973. The sale includes the restaurant’s fixtures and furnishings.
The property occupies 0.5198 acres at 1501 W Business 83 Road in Weslaco, with access near Expressway 83 and Westgate. The site provides 38 paved parking spaces and is located by a large HEB. The existing layout supports dine-in or drive-up service.
The property occupies 0.5198 acres at 1501 W Business 83 Road in Weslaco, with access near Expressway 83 and Westgate. The site provides 38 paved parking spaces and is located by a large HEB. The existing layout supports dine-in or drive-up service.
Key Highlights
- 4,212 square feet of built‑out restaurant space
- 0.5198‑acre site with 38 paved parking spaces
- Kitchen includes stoves, fryers, and a walk‑in refrigerator/freezer
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
$61,128
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
7.95%
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%
$1,222,560
$1.2M
Cap Rate 7%
$873,257
$873.3K
Cap Rate 9%
$679,200
$679.2K
Market Conditions
NOI Build-Up for 4,212 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
$86.4K $20.52/SF
− Vacancy
−$4.9K −$1.17/SF
EGI
$81.5K $19.35/SF
− OpEx
−$20.4K −$4.84/SF
NOI
$61.1K $14.51/SF
Area
Hidalgo County, TX
Vacancy
5.70%
Lease Rate
$20.52 /SF/Yr
Expense Ratio
25.00%
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%
$1,222,560
Cap Rate 7%
$873,257
Cap Rate 9%
$679,200
Alternative Uses
Best Use
Specialty Retail
$873.3K
$764.1K – $1.02M
NOI $61,128 @ 7.0% cap · market cap 7.95%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$3.17M
$2.78M – $3.70M
NOI $222,078 @ 7.0% cap · market cap 28.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
356
Businesses Nearby
278k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 35%
Dining 34%
Groceries 29%
Home Improvements & Furnishings 1%
H-E-B
Groceries
80,546 visits/mo
0.2 miles
H-E-B Fuel
Shops & Services
29,812 visits/mo
0.2 miles
Whataburger
Dining
28,822 visits/mo
0.3 miles
Dutch Bros. Coffee
Dining
20,272 visits/mo
0.4 miles
SONIC Drive In
Dining
16,399 visits/mo
0.4 miles
Demographics for 78596, TX
37,329
Population
15,824
Households
2.4
Avg Household Size
36
Median Age
21%
College-Educated
75%
High-School Grad
40.1 sq mi
ZIP Area
931
Density / Sq Mi
$53,797
Median Household Income
$31,618
Median Earnings
$917
Median Rent
$92,800
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Existing dining and food-service improvements include commercial cooking equipment, cold storage, booths, and bar fixtures.
Where is this conventional restaurant located?
The property is located at 1501 W Business 83 Road Weslaco, TX.
What is the asking price?
The asking price for this property is $769,000.
What are key features of this property?
This property features: 4,212 square feet of built‑out restaurant space; 0.5198‑acre site with 38 paved parking spaces; Kitchen includes stoves, fryers, and a walk‑in refrigerator/freezer
