Flex Space Redevelopment
For Sale
$554,000
1217 Chicago Avenue, McAllen, TX 78501
Redevelopment-focused flex/warehouse site with a 3,067 SF workshop and additional storage plus two residential structures.
Property Size3,067 SF
Lot Size0.89 Acres
Price / SF$180.63
Days on Market364
Property Features for 1217 Chicago Avenue
General Information
Standard status
Active
Size
3,067 SF
Lot size
0.89 Acres
Property subtype
General Commercial
Zoning
C-3
Site & Location
Highway Access
Yes
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$2,025
Amenities
3
Parking. Lot with Trees.
No Parking, On Street.
Workshop, Trees. City Road, Wooded.
Building Details
Year Built
1949
Listing Agency:
(956) 888-6731
Listed By:
Svn
(956) 888-6731
Source:
Xome
Added: Aug 26, 2025
Changed: Aug 24
Last Checked: Aug 24 at 4:41AM
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 Svn
Investment Insights
Based on property information with market context.
A 0.89± acre commercial redevelopment site offering flex-space or small-bay warehouse potential. Existing improvements include a 3,067± SF workshop, a 493± SF storage shed, and two residential structures totaling approximately 900± SF and 2,598± SF. The property is zoned C-3, with surrounding C-4 zoning, and may present an opportunity to pursue rezoning for higher-intensity commercial uses, subject to City approval.
The site is located in a strong McAllen infill corridor and is shadow-anchored by Burns Motors and Caliber Collision. Access is described as excellent to Old Business Highway 83 and Interstate 2.
For sale as a redevelopment option, the property may suit investors, developers, or owner-users looking to repurpose the existing improvements or reimagine the site for future development.
The site is located in a strong McAllen infill corridor and is shadow-anchored by Burns Motors and Caliber Collision. Access is described as excellent to Old Business Highway 83 and Interstate 2.
For sale as a redevelopment option, the property may suit investors, developers, or owner-users looking to repurpose the existing improvements or reimagine the site for future development.
Key Highlights
- 0.89± acre commercial redevelopment site in a McAllen infill corridor with access to Old Business Highway 83 and Interstate 2
- Zoned C‑3 with surrounding C‑4 zoning
- Existing 3,067± SF workshop plus 493± SF storage shed and a wooded lot
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
$19,002
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
3.43%
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%
$380,040
$380.0K
Cap Rate 7%
$271,457
$271.5K
Cap Rate 9%
$211,133
$211.1K
Market Conditions
NOI Build-Up for 3,067 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
$31.1K $10.14/SF
− Vacancy
−$1.9K −$0.61/SF
EGI
$29.2K $9.53/SF
− OpEx
−$10.2K −$3.34/SF
NOI
$19.0K $6.20/SF
Area
McAllen, TX
Vacancy
6.00%
Lease Rate
$10.14 /SF/Yr
Expense Ratio
35.00%
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%
$380,040
Cap Rate 7%
$271,457
Cap Rate 9%
$211,133
Alternative Uses
Best Use
Flex RnD
$271.5K
$237.5K – $316.7K
NOI $19,002 @ 7.0% cap · market cap 3.43%
Second Best
Industrial
$268.8K
$235.2K – $313.6K
NOI $18,816 @ 7.0% cap · market cap 3.40%
Theoretical Best
Office A
$832.8K
$728.7K – $971.6K
NOI $58,298 @ 7.0% cap · market cap 10.52%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,556
Businesses Nearby
Under-served
Demand for This Use
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
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Rámon García Catering Maria Bonita — 510 S 17th St, McAllen, TX 78501
- Classico Mc Allen — 117 S 17th St, McAllen, TX 78501
- Black Diamond BBQ - McAllen — 104 N Bicentennial Blvd, McAllen, TX 78501
Frequently Asked Questions
What type of property is this?
Flex space - Redevelopment-focused flex/warehouse site with a 3,067 SF workshop and additional storage plus two residential structures.
Where is this flex space located?
The property is located at 1217 Chicago Avenue McAllen, TX.
What is the asking price?
The asking price for this property is $554,000.
What are key features of this property?
This property features: 0.89± acre commercial redevelopment site in a McAllen infill corridor with access to Old Business Highway 83 and Interstate 2; Zoned C‑3 with surrounding C‑4 zoning; Existing 3,067± SF workshop plus 493± SF storage shed and a wooded lot
