33-Room Independent
For Sale
$1,850,000
1010 West Houston Avenue, McAllen, TX 78501
Two-story independent hotel near downtown McAllen and McAllen International Airport.
Property Size10,000 SF
Days on Market403
Property Features for 1010 West Houston Avenue
General Information
Standard status
Active
Size
10,000 SF
Property subtype
LH
Zoning
CO
Building Details
Building Size
10,000 SF
Year Built
2003
Stories
2
Units
33
Listing Agency:
KW Commercial
(210) 696-9996
Listed By:
Rav Singh · License #0560351
(210) 696-9996
Source:
Realnex
Added: Jul 25, 2025
Changed: Aug 30
Last Checked: Aug 30 at 3:17PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of KW Commercial
Investment Insights
Based on property information with market context.
La Copa Inn is a 33-room, two-story independent hotel constructed in 2003 and operated without a franchise affiliation. The property is designated CO zoning and serves as an economy lodging asset at 1010 West Houston Avenue in McAllen, Texas.
The hotel is positioned 0.5 miles from downtown McAllen and 1.6 miles from McAllen International Airport, which is approximately a 4-minute drive away. The surrounding area includes retail, hospitality, and transportation infrastructure, and the location has a Walk Score of 77.
The hotel is positioned 0.5 miles from downtown McAllen and 1.6 miles from McAllen International Airport, which is approximately a 4-minute drive away. The surrounding area includes retail, hospitality, and transportation infrastructure, and the location has a Walk Score of 77.
Key Highlights
- 33‑room hotel with two‑story configuration
- Independent operation without a franchise flag
- Built in 2003
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
$68,400
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
3.70%
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%
$1,368,000
$1.4M
Cap Rate 7%
$977,143
$977.1K
Cap Rate 9%
$760,000
$760.0K
Market Conditions
NOI Build-Up for 10,000 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
$180.0K $18.00/SF
− Vacancy
−$36.0K −$3.60/SF
EGI
$144.0K $14.40/SF
− OpEx
−$75.6K −$7.56/SF
NOI
$68.4K $6.84/SF
Area
McAllen, TX
Vacancy
20.00%
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%
$1,368,000
Cap Rate 7%
$977,143
Cap Rate 9%
$760,000
Alternative Uses
Best Use
Hotel Hospitality
$977.1K
$855.0K – $1.14M
NOI $68,400 @ 7.0% cap · market cap 3.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.72M
$2.38M – $3.17M
NOI $190,080 @ 7.0% cap · market cap 10.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,447
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?
Hotel - Two-story independent hotel near downtown McAllen and McAllen International Airport.
Where is this hotel located?
The property is located at 1010 West Houston Avenue McAllen, TX.
What is the asking price?
The asking price for this property is $1,850,000.
What are key features of this property?
This property features: 33‑room hotel with two‑story configuration; Independent operation without a franchise flag; Built in 2003
