20-Unit Apartment
For Sale
$2,400,000
731 N Tower Rd, Alamo, TX 78516
Fully leased multifamily property with modern finishes, on-site parking, and a separate office area.
Property Size24,000 SF
Price / SF$100
Days on Market507
Property Features for 731 N Tower Rd
General Information
Standard status
Active
Size
24,000 SF
Property subtype
Residential Income
Occupancy
100%
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Cap Rate
8%
Multifamily Units
20
Taxes and HOA fees
Annual Taxes
$35,000
Listing Agency:
BIG Realty
(956) 465-0011
Listed By:
Victor Fuentes
(956) 432-1351
Source:
Exprealty
Added: Apr 15, 2025
Changed: Sep 2
Last Checked: Sep 1 at 11:08PM
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 BIG Realty
Investment Insights
Based on property information with market context.
This 20-unit apartment building contains 24,000 square feet and is fully rented. The property includes modern interior finishes, ample parking, and a large office area that can support administrative use or be converted into an additional rental space, subject to applicable requirements.
The building fronts Tower Rd, with Expressway 83 only seconds away. Its location provides direct access to a major thoroughfare and nearby commercial centers. The property is currently producing an 8% cap rate, offering an established multifamily operating profile for an owner or investor.
The building fronts Tower Rd, with Expressway 83 only seconds away. Its location provides direct access to a major thoroughfare and nearby commercial centers. The property is currently producing an 8% cap rate, offering an established multifamily operating profile for an owner or investor.
Key Highlights
- 20‑unit apartment building with 24,000 square feet
- Fully rented multifamily property
- 8% cap rate
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
$193,235
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
8.05%
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%
$3,864,700
$3.9M
Cap Rate 7%
$2,760,500
$2.8M
Cap Rate 9%
$2,147,056
$2.1M
Market Conditions
NOI Build-Up for 24,000 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
$397.4K $16.56/SF
− Vacancy
−$46.1K −$1.92/SF
EGI
$351.3K $14.64/SF
− OpEx
−$158.1K −$6.59/SF
NOI
$193.2K $8.05/SF
Area
Hidalgo County, TX
Vacancy
11.60%
Lease Rate
$16.56 /SF/Yr
Expense Ratio
45.00%
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%
$3,864,700
Cap Rate 7%
$2,760,500
Cap Rate 9%
$2,147,056
Alternative Uses
Best Use
Apartment 5plus
$2.76M
$2.42M – $3.22M
NOI $193,235 @ 7.0% cap · market cap 8.05%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$18.08M
$15.82M – $21.09M
NOI $1,265,400 @ 7.0% cap · market cap 52.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20
Residential units
100%
Occupancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
368
Businesses Nearby
Explore this area
Business Placement
Demographics for 78516, TX
34,506
Population
12,469
Households
2.8
Avg Household Size
32
Median Age
12%
College-Educated
59%
High-School Grad
37.8 sq mi
ZIP Area
913
Density / Sq Mi
$51,547
Median Household Income
$26,908
Median Earnings
$743
Median Rent
$102,900
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Fully leased multifamily property with modern finishes, on-site parking, and a separate office area.
Where is this apartment building located?
The property is located at 731 N Tower Rd Alamo, TX.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: 20‑unit apartment building with 24,000 square feet; Fully rented multifamily property; 8% cap rate
