Commercial Corner Lot with
For Sale
$3,900,000
1702 S State Highway 336, Edinburg, TX 78539
Hard-corner site with a daycare facility plus an office building containing three office spaces available for lease.
Property Size20,000 SF
Lot Size4.40 Acres
Price / SF$195
Days on Market110
Property Features for 1702 S State Highway 336
General Information
Standard status
Active
Size
20,000 SF
Lot size
4.40 Acres
Additional Details
Office Units
3
Building Details
Year Built
1985
Listing Agency:
WINNERS CIRCLE
Listed By:
Candice Clayton
(956) 888-0052
Source:
Aregtx
Added: May 19
Changed: Sep 2
Last Checked: Sep 5 at 12:07PM
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 WINNERS CIRCLE
Investment Insights
Based on property information with market context.
This hard-corner commercial property is being sold as a combined parcel totaling 4.40 acres (3.42 acres and 0.98 acres) and includes existing improvements. The site features a daycare facility and an office building with three office spaces available for lease.
The property is located on the corner of W Freddy Gonzalez Dr and N 10th St and is offered with visibility and accessibility typical of a corner location. A new Lone Star Bank location is directly across the street.
With both a childcare use and income-producing office space already in place, the property offers a mixed configuration on the combined land parcels.
The property is located on the corner of W Freddy Gonzalez Dr and N 10th St and is offered with visibility and accessibility typical of a corner location. A new Lone Star Bank location is directly across the street.
With both a childcare use and income-producing office space already in place, the property offers a mixed configuration on the combined land parcels.
Key Highlights
- Hard‑corner commercial site at W Freddy Gonzalez Dr & N 10th St, offered as 4.40 total acres (3.42 AC + 0.98 AC).
- Includes an existing daycare facility for immediate use or income potential.
- Also includes an office building with three office spaces available for lease.
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
$286,380
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
7.34%
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%
$5,727,600
$5.7M
Cap Rate 7%
$4,091,143
$4.1M
Cap Rate 9%
$3,182,000
$3.2M
Market Conditions
NOI Build-Up for 20,000 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
$444.0K $22.20/SF
− Vacancy
−$62.2K −$3.11/SF
EGI
$381.8K $19.09/SF
− OpEx
−$95.5K −$4.77/SF
NOI
$286.4K $14.32/SF
Area
Edinburg, TX
Vacancy
14.00%
Lease Rate
$22.20 /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%
$5,727,600
Cap Rate 7%
$4,091,143
Cap Rate 9%
$3,182,000
Alternative Uses
Best Use
Office B
$4.09M
$3.58M – $4.77M
NOI $286,380 @ 7.0% cap · market cap 7.34%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.19M
$4.54M – $6.05M
NOI $363,264 @ 7.0% cap · market cap 9.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Location Intelligence
Trade Area within ½ mile
184
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78539, TX
37,686
Population
15,759
Households
2.4
Avg Household Size
34
Median Age
37%
College-Educated
84%
High-School Grad
12.2 sq mi
ZIP Area
3,089
Density / Sq Mi
$64,864
Median Household Income
$38,413
Median Earnings
$1,034
Median Rent
$198,300
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Cayetano Cavazos Elementary School — 1501 Freddy Gonzalez Dr, McAllen, TX 78504
- Learnrgv — 1702 N 10th St Suite A, Edinburg, TX 78539
- Sesame St Day Care — 4014 W Sprague St, Edinburg, TX 78539
- Hidalgo County Head Start Program — 1901 TX-107, McAllen, TX 78504
Frequently Asked Questions
What type of property is this?
Day care center - Hard-corner site with a daycare facility plus an office building containing three office spaces available for lease.
Where is this day care center located?
The property is located at 1702 S State Highway 336 Edinburg, TX.
What is the asking price?
The asking price for this property is $3,900,000.
What are key features of this property?
This property features: Hard‑corner commercial site at W Freddy Gonzalez Dr & N 10th St, offered as 4.40 total acres (3.42 AC + 0.98 AC).; Includes an existing daycare facility for immediate use or income potential.; Also includes an office building with three office spaces available for lease.
