Bayfront 50-Room
For Sale
$4,500,000
901 N Padre Blvd., South Padre Island, TX 78597
Commercial Sale, South Padre Island, TX
Property Size30,258 SF
Lot Size0.97 Acres
Price / SF$148.72
Days on Market352
Property Features for 901 N Padre Blvd.
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C
Subdivision
Padre Beach Acres
Elementary school district
Point Isabel ISD
Middle school district
Point Isabel ISD
High school district
Point Isabel ISD
Standard status
Active
Size
30,258 SF
Lot size
0.97 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
39187
Building Details
Year built
2000
Number of units
50
Listing Agency:
Effective Real Estate
(956) 322-8522
Listed By:
Esteban Flores
(512) 749-3897
Added: Sep 12, 2025
Changed: Aug 20
Last Checked: Aug 29 at 2:06PM
MLS# 104280
Copyright © 2026 South Padre Island Board 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 bayfront hospitality property includes 50 guest rooms within a 30,258-square-foot building on 0.97 acres. Constructed in 2000, the hotel is zoned C and positioned for lodging use in a coastal destination setting.
The property sits along N Padre Blvd. in South Padre Island, with the beach a short distance away and multiple retailers within walking distance. The surrounding destination offers a 34-mile coastline, nature tourism attractions, wind and water recreation, an entertainment district, and local restaurants. South Padre Island also functions as a drive-to beach destination for travelers from across the region.
The property sits along N Padre Blvd. in South Padre Island, with the beach a short distance away and multiple retailers within walking distance. The surrounding destination offers a 34-mile coastline, nature tourism attractions, wind and water recreation, an entertainment district, and local restaurants. South Padre Island also functions as a drive-to beach destination for travelers from across the region.
Key Highlights
- 50‑room hotel on a 0.97‑acre site
- 30,258‑square‑foot hotel building constructed in 2000
- Bayfront setting along N Padre Blvd.
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
$232,835
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
5.17%
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%
$4,656,700
$4.7M
Cap Rate 7%
$3,326,214
$3.3M
Cap Rate 9%
$2,587,056
$2.6M
Market Conditions
NOI Build-Up for 30,258 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
$544.6K $18.00/SF
− Vacancy
−$54.5K −$1.80/SF
EGI
$490.2K $16.20/SF
− OpEx
−$257.3K −$8.51/SF
NOI
$232.8K $7.69/SF
Area
Cameron County, TX
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$4,656,700
Cap Rate 7%
$3,326,214
Cap Rate 9%
$2,587,056
Alternative Uses
Best Use
Hotel Hospitality
$3.33M
$2.91M – $3.88M
NOI $232,835 @ 7.0% cap · market cap 5.17%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$5.21M
$4.56M – $6.08M
NOI $364,694 @ 7.0% cap · market cap 8.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
300
Businesses Nearby
Explore this area
Business Placement
Demographics for 78597, TX
2,479
Population
5,895
Households
0.4
Avg Household Size
56
Median Age
53%
College-Educated
92%
High-School Grad
8.8 sq mi
ZIP Area
282
Density / Sq Mi
$61,357
Median Household Income
$36,843
Median Earnings
$1,421
Median Rent
$508,800
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?
Hotel - C-zoned hospitality property near the beach, retailers, restaurants, and South Padre Island’s entertainment district.
Where is this hotel located?
The property is located at 901 N Padre Blvd. South Padre Island, TX.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: 50‑room hotel on a 0.97‑acre site; 30,258‑square‑foot hotel building constructed in 2000; Bayfront setting along N Padre Blvd.
