NN-Leased Medical
For Sale
Contact for pricing
1301 W U S Hwy 83, McAllen, TX 78501
Recently renovated dental practice with a long-term NN lease and limited landlord responsibilities.
Property Size7,500 SF
Price / SF$414.67
Days on Market53
Property Features for 1301 W U S Hwy 83
General Information
Standard status
Active
Size
7,500 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$217,500
Site & Location
Anchor Co-Tenants
Home Depot, Ashley Furniture
Highway Access
Yes
Building Details
Year Built
2000
Year Renovated
2024
Tenancy
Single
Listing Agency:
Summit RE
Listed By:
Jackson Brewer · License #TX 772853
Source:
Crexi
Added: Jul 28
Changed: Sep 17
Last Checked: Sep 18 at 7:08AM
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 Summit RE
Investment Insights
Based on property information with market context.
This 7,500-square-foot medical office property was built in 2000 and is occupied by Elstar Dental. The tenant completed a full renovation in 2024 while consolidating two existing locations into the McAllen practice. The property is subject to a long-term NN lease with more than 6 years remaining and limited landlord obligations restricted to roof and structure. A corporate guaranty is provided by New Benevis Smiles, LLC, backed by New Mountain Capital.
The property fronts US Highway 83 at 1301 W U S Hwy 83 in McAllen, Texas, with exposure to more than 22,000 vehicles per day. It is an outparcel to Home Depot and Ashley Furniture and sits across from Pharr Town Center, a 460,000-square-foot shopping center featuring Academy, TJ Maxx, Ross, Five Below, Main Event, World Market, and other national retailers. The surrounding 5-mile trade area includes more than 238,000 residents with average household incomes exceeding $77,000.
The property fronts US Highway 83 at 1301 W U S Hwy 83 in McAllen, Texas, with exposure to more than 22,000 vehicles per day. It is an outparcel to Home Depot and Ashley Furniture and sits across from Pharr Town Center, a 460,000-square-foot shopping center featuring Academy, TJ Maxx, Ross, Five Below, Main Event, World Market, and other national retailers. The surrounding 5-mile trade area includes more than 238,000 residents with average household incomes exceeding $77,000.
Key Highlights
- 7,500‑square‑foot medical office property built in 2000
- 2024 renovation completed by Elstar Dental
- NN lease with more than 6 years remaining
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
$107,050
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
3.44%
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%
$2,141,000
$2.1M
Cap Rate 7%
$1,529,286
$1.5M
Cap Rate 9%
$1,189,444
$1.2M
Market Conditions
NOI Build-Up for 7,500 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
$162.0K $21.60/SF
− Vacancy
−$9.1K −$1.21/SF
EGI
$152.9K $20.39/SF
− OpEx
−$45.9K −$6.12/SF
NOI
$107.0K $14.27/SF
Area
McAllen, TX
Vacancy
5.60%
Lease Rate
$21.60 /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%
$2,141,000
Cap Rate 7%
$1,529,286
Cap Rate 9%
$1,189,444
Alternative Uses
Best Use
Retail
$1.53M
$1.34M – $1.78M
NOI $107,050 @ 7.0% cap · market cap 3.44%
Second Best
Office B
$1.43M
$1.26M – $1.67M
NOI $100,406 @ 7.0% cap · market cap 3.23%
Theoretical Best
Office A
$2.04M
$1.78M – $2.38M
NOI $142,560 @ 7.0% cap · market cap 4.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
900
Businesses Nearby
Balanced
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Recently renovated dental practice with a long-term NN lease and limited landlord responsibilities.
Where is this medical office space located?
The property is located at 1301 W U S Hwy 83 McAllen, TX.
What is the asking price?
The asking price for this property is $3,110,000.
What are key features of this property?
This property features: 7,500‑square‑foot medical office property built in 2000; 2024 renovation completed by Elstar Dental; NN lease with more than 6 years remaining
