Established Convenience Store Investment
For Sale
$1,000,000
24058 N FM 88 Unit 88, Monte Alto, TX 78538
Thriving convenience store with strong sales and growth potential.
Property Size2,400 SF
Price / SF$416.67
Days on Market524
Property Features for 24058 N FM 88 Unit 88
General Information
Standard status
Active
Size
2,400 SF
Property subtype
General Commercial
Amenities
3
Building Details
Year Built
2010
Stories
1
Listing Agency:
THE MBTEAM
(956) 357-4632
Listed By:
MONICA BENAVIDES TEAM
(956) 357-4632
Source:
Xome
Added: Mar 19, 2025
Changed: Aug 23
Last Checked: Aug 24 at 5:24AM
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 THE MBTEAM
Investment Insights
Based on property information with market context.
This established convenience store presents an investment opportunity in a growing community with both local and traveler traffic. The store is strategically positioned along a main route, serving as a stop for travelers to purchase essentials, food, and drinks. Benefiting from limited competition, the store experiences customer loyalty and consistent sales. The property has strong sales performance, with annual revenue estimating 7 figures, through multiple streams, including alcohol sales, a popular taco counter, and a convenient drive-through. The property size is 2400 square feet. The location and proven income, combined with the community's expansion, offer growth potential for investors or owner-operators. The property is suitable for commercial real estate, retail, grocery, and convenience store use.
Key Highlights
- Established convenience store with strong, seven‑figure annual revenue.
- Prime location on a main route with high local and traveler traffic.
- Multiple income streams including alcohol sales, taco counter, and drive‑through.
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
$34,831
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
3.48%
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%
$696,620
$696.6K
Cap Rate 7%
$497,586
$497.6K
Cap Rate 9%
$387,011
$387.0K
Market Conditions
NOI Build-Up for 2,400 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
$49.2K $20.52/SF
− Vacancy
−$2.8K −$1.17/SF
EGI
$46.4K $19.35/SF
− OpEx
−$11.6K −$4.84/SF
NOI
$34.8K $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%
$696,620
Cap Rate 7%
$497,586
Cap Rate 9%
$387,011
Alternative Uses
Best Use
Specialty Retail
$497.6K
$435.4K – $580.5K
NOI $34,831 @ 7.0% cap · market cap 3.48%
Second Best
Retail
$462.9K
$405.1K – $540.1K
NOI $32,405 @ 7.0% cap · market cap 3.24%
Theoretical Best
Hotel Hospitality
$1.81M
$1.58M – $2.11M
NOI $126,540 @ 7.0% cap · market cap 12.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78538, TX
12,278
Population
3,745
Households
3.3
Avg Household Size
30
Median Age
11%
College-Educated
65%
High-School Grad
67.0 sq mi
ZIP Area
183
Density / Sq Mi
$38,904
Median Household Income
$29,442
Median Earnings
$586
Median Rent
$87,300
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?
Grocery and convenience store - Thriving convenience store with strong sales and growth potential.
Where is this grocery and convenience store located?
The property is located at 24058 N FM 88 Unit 88 Monte Alto, TX.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Established convenience store with strong, seven‑figure annual revenue.; Prime location on a main route with high local and traveler traffic.; Multiple income streams including alcohol sales, taco counter, and drive‑through.
