Restaurant With Commercial
For Sale
$575,000
5220 N Fm 493 Highway, Donna, TX 78537
COMMERCIAL - Donna, TX
Property Size2,160 SF
Lot Size2.00 Acres
Price / SF$266.20
Days on Market17
Property Features for 5220 N Fm 493 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
32
Security features
Security Lighting
Exterior features
BBQ Pit/Grill, Workshop
Appliances
Electric Water Heater
Subdivision
La Blanca B
Directions
Exit on FM 493.( Salinas),head North for about 1.8 miles. As soon as you pass Mile 10 1/2, it will be the second building to the right.
Standard status
Active
APN
L045000022000006
Size
2,160 SF
Lot size
2.00 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
5071
Utilities
Heating system
Electric (Heating), Central
Cooling system
Electric, Central Air
Amenities
commercial kitchen
hand car wash/detailing service area
Building Details
Year built
1977
Floors in Building
1
Building materials
Block
Roof type
Metal
Additional Structures
Workshop
Listing Agency:
BIG Realty
(956) 465-0011
Listed By:
Victor Fuentes · License #574075
(956) 432-1351
Added: Aug 3
Changed: Aug 4
Last Checked: Aug 19 at 10:06AM
MLS# 511224
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 2,160-square-foot restaurant property occupies approximately 2 acres and includes a commercial kitchen, restaurant furniture, and a separate hand car wash and detailing area. New kitchen appliances and a new ice machine are included. The building was constructed in 1977 with block construction, a metal roof, central air conditioning, and central electric heating. Exterior improvements include a BBQ pit or grill and a workshop.
The property is located at 5220 N FM 493 Highway in Donna, directly along FM 493 with access for customers and ample parking. Its existing restaurant and automotive-service components provide two distinct commercial functions within the same property. Additional features include an electric water heater and electric cooling.
The property is located at 5220 N FM 493 Highway in Donna, directly along FM 493 with access for customers and ample parking. Its existing restaurant and automotive-service components provide two distinct commercial functions within the same property. Additional features include an electric water heater and electric cooling.
Key Highlights
- Approximately 2 acres of commercial property
- 2,160 SF restaurant building constructed in 1977
- Commercial kitchen includes new appliances and a new ice machine
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
$31,348
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
5.45%
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%
$626,960
$627.0K
Cap Rate 7%
$447,829
$447.8K
Cap Rate 9%
$348,311
$348.3K
Market Conditions
NOI Build-Up for 2,160 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
$44.3K $20.52/SF
− Vacancy
−$2.5K −$1.17/SF
EGI
$41.8K $19.35/SF
− OpEx
−$10.4K −$4.84/SF
NOI
$31.3K $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%
$626,960
Cap Rate 7%
$447,829
Cap Rate 9%
$348,311
Alternative Uses
Best Use
Specialty Retail
$447.8K
$391.9K – $522.5K
NOI $31,348 @ 7.0% cap · market cap 5.45%
Second Best
Retail
$416.6K
$364.6K – $486.1K
NOI $29,165 @ 7.0% cap · market cap 5.07%
Theoretical Best
Hotel Hospitality
$1.63M
$1.42M – $1.90M
NOI $113,886 @ 7.0% cap · market cap 19.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
10
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78537, TX
51,962
Population
16,683
Households
3.1
Avg Household Size
28
Median Age
10%
College-Educated
54%
High-School Grad
57.6 sq mi
ZIP Area
902
Density / Sq Mi
$36,331
Median Household Income
$20,354
Median Earnings
$744
Median Rent
$74,700
Median Home Value
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 - Includes a hand car wash area, restaurant furnishings, and new kitchen equipment for immediate commercial use.
Where is this conventional restaurant located?
The property is located at 5220 N Fm 493 Highway Donna, TX.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: Approximately 2 acres of commercial property; 2,160 SF restaurant building constructed in 1977; Commercial kitchen includes new appliances and a new ice machine
