Brick Strip Retail
New
For Sale
$1,100,000
1312 Expressway 83, Penitas, TX 78576
Commercial Sale, Penitas, TX
Property Size6,820 SF
Lot Size1.76 Acres
Price / SF$161.29
Days on Market1
Property Features for 1312 Expressway 83
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
15
Appliances
Electric Water Heater, Water Heater (Other Location)
Subdivision
Los Ejidos De Reynosa
Directions
Going West from McAllen Highway 83 (Not the Loop) continue West to Tom Gill Road, continuing West just after Tom Gill make a South/Left turn South to enter Buenavista Street, Building and Property are immediately to your right.
Standard status
Active
APN
L605000000032900
Size
6,820 SF
Lot size
1.76 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
22981
Utilities
Heating system
Electric (Heating), Zoned, Central
Cooling system
Central Air, Electric, Zoned
Building Details
Year built
1983
Floors in Building
1
Building materials
Brick
Roof type
Tile, Flat
Listing Agency:
RE/MAX elite · RE/MAX International
(956) 583-2100
Listed By:
norma hinojosa · License #0521694
(956) 330-3674
Added: Sep 24
Last Checked: Sep 24 at 7:06AM
MLS# 516161
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This approximately 6,820-square-foot strip retail building occupies a 1.76-acre property in Penitas. The brick structure was built in 1983 and includes central electric heating and cooling with zoned controls. Tile and flat roof sections are part of the existing improvements.
The property has access from eastbound Expressway 83 and Buenavista Street. Recent uses have included a medical clinic, pharmacy and retail operation, and office and insurance space. The site includes vacant land beyond the building and parking area, creating room for expansion or a retail subdivision, subject to applicable approvals.
The property has access from eastbound Expressway 83 and Buenavista Street. Recent uses have included a medical clinic, pharmacy and retail operation, and office and insurance space. The site includes vacant land beyond the building and parking area, creating room for expansion or a retail subdivision, subject to applicable approvals.
Key Highlights
- Approximately 6,820 square feet of commercial building area
- 1.76‑acre property with vacant land beyond the building and parking area
- Access from eastbound Expressway 83 and Buenavista Street
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
$100,911
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
9.17%
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%
$2,018,220
$2.0M
Cap Rate 7%
$1,441,586
$1.4M
Cap Rate 9%
$1,121,233
$1.1M
Market Conditions
NOI Build-Up for 6,820 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
$202.1K $29.64/SF
− Vacancy
−$34.0K −$4.98/SF
EGI
$168.2K $24.66/SF
− OpEx
−$67.3K −$9.86/SF
NOI
$100.9K $14.80/SF
Area
Hidalgo County, TX
Vacancy
16.80%
Lease Rate
$29.64 /SF/Yr
Expense Ratio
40.00%
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%
$2,018,220
Cap Rate 7%
$1,441,586
Cap Rate 9%
$1,121,233
Alternative Uses
Best Use
Healthcare Medical
$1.44M
$1.26M – $1.68M
NOI $100,911 @ 7.0% cap · market cap 9.17%
Second Best
Retail
$1.32M
$1.15M – $1.53M
NOI $92,085 @ 7.0% cap · market cap 8.37%
Theoretical Best
Hotel Hospitality
$5.14M
$4.49M – $5.99M
NOI $359,585 @ 7.0% cap · market cap 32.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
333
Businesses Nearby
184k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 49%
Dining 29%
Shops & Services 19%
Electronics 3%
Walmart
Superstores
90,183 visits/mo
0.4 miles
Dollar Tree
Shops & Services
22,230 visits/mo
0.4 miles
Denny's
Dining
15,459 visits/mo
0.5 miles
Dutch Bros. Coffee
Dining
12,425 visits/mo
0.3 miles
Dollar General
Shops & Services
8,321 visits/mo
0.2 miles
Demographics for 78576, TX
13,901
Population
3,362
Households
4.1
Avg Household Size
25
Median Age
6%
College-Educated
53%
High-School Grad
58.2 sq mi
ZIP Area
239
Density / Sq Mi
$48,205
Median Household Income
$21,962
Median Earnings
$629
Median Rent
$116,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Existing improvements include central zoned HVAC and additional land that can support expansion or retail subdivision.
Where is this strip mall located?
The property is located at 1312 Expressway 83 Penitas, TX.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Approximately 6,820 square feet of commercial building area; 1.76‑acre property with vacant land beyond the building and parking area; Access from eastbound Expressway 83 and Buenavista Street
