Prime Commercial Lot in
For Sale
$599,000
437 S Kings Drive, McAllen, TX 78501
COMMERCIAL - McAllen, TX
Property Size2,546 SF
Lot Size0.46 Acres
Price / SF$235.27
Days on Market128
Property Features for 437 S Kings Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C3
Parking
1
Appliances
Electric Water Heater
Subdivision
King's Highway
Lot features
Major Shopping Mall, Strip Mall
Directions
From Expressway 83 exit on Ware Rd (North) turn right on Erie Ave property will be on your left. Behing Mcallen Convention Center
Standard status
Active
APN
K720000000001206
Size
2,546 SF
Lot size
0.46 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
4378
Utilities
Heating system
Central
Cooling system
Central Air
Building Details
Year built
1991
Floors in Building
1
Building materials
Brick
Roof type
Composition
Listing Agency:
RE/MAX elite · RE/MAX International
(956) 583-2100
Listed By:
Tania J. Salinas · License #0669357
(956) 223-3216
Added: Apr 15
Changed: Aug 12
Last Checked: Aug 20 at 8:06PM
MLS# 491977
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 commercial lot is located in McAllen, Texas, behind the McAllen Convention Center, and offers access to the expressway and shopping centers. Zoned C-3, the property is suited for development. The lot includes a house that requires repair; however, the value is in the land and location. It is suitable for building a medical plaza, shopping strip, or other commercial venture. The property is zoned C-3. The lot size is 0.46 acres, or 2,546 square feet.
Key Highlights
- Prime Location: Situated behind the McAllen Convention Center with easy expressway access.
- C‑3 Commercial Zoning offers excellent development potential.
- Spacious Land provides ample space for building a medical plaza, shopping strip, or other commercial projects.
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
$21,142
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
3.53%
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%
$422,840
$422.8K
Cap Rate 7%
$302,029
$302.0K
Cap Rate 9%
$234,911
$234.9K
Market Conditions
NOI Build-Up for 2,546 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
$41.2K $16.20/SF
− Vacancy
−$2.8K −$1.10/SF
EGI
$38.4K $15.10/SF
− OpEx
−$17.3K −$6.79/SF
NOI
$21.1K $8.30/SF
Area
McAllen, TX
Vacancy
6.80%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
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%
$422,840
Cap Rate 7%
$302,029
Cap Rate 9%
$234,911
Alternative Uses
Best Use
Apartment 5plus
$302.0K
$264.3K – $352.4K
NOI $21,142 @ 7.0% cap · market cap 3.53%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$691.3K
$604.9K – $806.6K
NOI $48,394 @ 7.0% cap · market cap 8.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
479
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - C-3 zoned commercial lot near McAllen Convention Center.
Where is this commercial land located?
The property is located at 437 S Kings Drive McAllen, TX.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: Prime Location: Situated behind the McAllen Convention Center with easy expressway access.; C‑3 Commercial Zoning offers excellent development potential.; Spacious Land provides ample space for building a medical plaza, shopping strip, or other commercial projects.
