Auto Shop with
For Sale
$520,000
1020 N Baseline Road, Mercedes, TX 78570
Mechanic shop and house with central air and covered on-site parking along a city road.
Property Size8,569 SF
Price / SF$60.68
Days on Market375
Property Features for 1020 N Baseline Road
General Information
Standard status
Active
Size
8,569 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$2,657
Amenities
Central Air
3
9 Parking Spaces. Covered.
City Road.
Building Details
Year Built
1987
Buildings
2
Listing Agency:
Exp Realty Llc
(469) 909-8616
Listed By:
Eduardo Belmarez
(469) 909-8616
Source:
Xome
Added: Aug 22, 2025
Changed: Aug 29
Last Checked: Aug 30 at 3:11PM
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 Exp Realty Llc
Investment Insights
Based on property information with market context.
This commercial property combines a mechanic shop with an existing house, creating a mixed-use configuration for an automotive-oriented operation. The improvements date to 1987 and include central air conditioning.
The property is situated on N Baseline Road in Mercedes, Texas, with access from a city road. On-site parking includes 9 covered spaces. The offering is identified for sale and includes both the house and mechanic shop.
The property is situated on N Baseline Road in Mercedes, Texas, with access from a city road. On-site parking includes 9 covered spaces. The offering is identified for sale and includes both the house and mechanic shop.
Key Highlights
- Mechanic shop and house included in the sale
- 9 covered parking spaces
- Central air conditioning
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
$45,092
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
8.67%
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%
$901,840
$901.8K
Cap Rate 7%
$644,171
$644.2K
Cap Rate 9%
$501,022
$501.0K
Market Conditions
NOI Build-Up for 8,569 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
$68.9K $8.04/SF
− Vacancy
−$4.5K −$0.52/SF
EGI
$64.4K $7.52/SF
− OpEx
−$19.3K −$2.26/SF
NOI
$45.1K $5.26/SF
Area
Hidalgo County, TX
Vacancy
6.50%
Lease Rate
$8.04 /SF/Yr
Expense Ratio
30.00%
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%
$901,840
Cap Rate 7%
$644,171
Cap Rate 9%
$501,022
Alternative Uses
Best Use
Retail
$1.65M
$1.45M – $1.93M
NOI $115,700 @ 7.0% cap · market cap 22.25%
Second Best
Industrial
$644.2K
$563.7K – $751.5K
NOI $45,092 @ 7.0% cap · market cap 8.67%
Theoretical Best
Hotel Hospitality
$6.45M
$5.65M – $7.53M
NOI $451,801 @ 7.0% cap · market cap 86.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
160
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78570, TX
32,950
Population
10,701
Households
3.1
Avg Household Size
30
Median Age
12%
College-Educated
61%
High-School Grad
75.2 sq mi
ZIP Area
438
Density / Sq Mi
$39,890
Median Household Income
$22,648
Median Earnings
$686
Median Rent
$83,400
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.
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Frequently Asked Questions
What type of property is this?
Auto shop - Mechanic shop and house with central air and covered on-site parking along a city road.
Where is this auto shop located?
The property is located at 1020 N Baseline Road Mercedes, TX.
What is the asking price?
The asking price for this property is $520,000.
What are key features of this property?
This property features: Mechanic shop and house included in the sale; 9 covered parking spaces; Central air conditioning
