Brand-New Fourplex with
For Sale
$510,000
205 E Royal Palm Dr., Mercedes, TX 78570
MULTI_FAMILY - Mercedes, TX
Property Size4,400 SF
Lot Size0.23 Acres
Price / SF$115.91
Days on Market47
Property Features for 205 E Royal Palm Dr.
General Information
Property type
Residential Multi Family
Property subtype
Other
Property condition
Under Construction
Zoning
RES
Bedrooms
12
Bathrooms
8
Full bathrooms
8
Rooms
Bedroom 6, Bedroom 8, Bedroom 5, Bathroom 4, Bathroom 6, Bedroom 7, Bedroom 10, Bedroom 9, Bathroom 1, Bathroom 3, Bedroom 3, Bedroom 11, Bathroom 2, Bathroom 5, Bedroom 2, Bathroom 8, Bathroom 7, Bedroom 1, Bedroom 12, Bedroom 4
Parking features
Carport
Interior features
Kitchen Island, Washer/Dryer Hook-up
Exterior features
Fence
Fencing
Fenced
Appliances
Microwave, Refrigerator, Washer/Dryer
Subdivision
Summer Breeze
Lot features
Undeveloped ( Other)
Standard status
Active
Size
4,400 SF
Lot size
0.23 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
100
Amenities
appliances included
Building Details
Year built
2025
Floors in Building
1
Number of units
4
Flooring type
Tile
Building materials
Stucco
Listing Agency:
Effective Real Estate
(956) 322-8522
Listed By:
Ryan McDaniel
(956) 299-2111
Added: Jun 23
Changed: Aug 4
Last Checked: Aug 8 at 4:06PM
MLS# 106447
Copyright © 2026 South Padre Island Board 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.
Brand-new fourplex (under construction, year built 2025) set on a 0.2328-acre lot. The property includes four units, each designed with a spacious 3-bedroom, 2-bath layout. Interior features include a kitchen island and washer/dryer hook-up, with appliances included (microwave, refrigerator, and washer/dryer). Exterior improvements include stucco construction, fencing, and carports for resident parking.
The property is located in Mercedes, TX, about two minutes from Expressway 83, with quick access to the Rio Grande Valley area while remaining in a quiet neighborhood near the Livestock Show Grounds and the Rio Grande Valley Outlets.
This configuration supports both investor and owner-occupant use, with self-contained unit living and straightforward, low-maintenance elements such as tile flooring and fenced exterior space.
The property is located in Mercedes, TX, about two minutes from Expressway 83, with quick access to the Rio Grande Valley area while remaining in a quiet neighborhood near the Livestock Show Grounds and the Rio Grande Valley Outlets.
This configuration supports both investor and owner-occupant use, with self-contained unit living and straightforward, low-maintenance elements such as tile flooring and fenced exterior space.
Key Highlights
- 0.2328‑acre lot with a 4,400 SF fourplex
- Year built 2025; property condition under construction
- Each unit offers a spacious 3‑bedroom, 2‑bath layout
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
$38,478
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
7.54%
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%
$769,560
$769.6K
Cap Rate 7%
$549,686
$549.7K
Cap Rate 9%
$427,533
$427.5K
Market Conditions
NOI Build-Up for 4,400 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
$61.8K $14.04/SF
− Vacancy
−$6.8K −$1.55/SF
EGI
$55.0K $12.49/SF
− OpEx
−$16.5K −$3.75/SF
NOI
$38.5K $8.74/SF
Area
Hidalgo County, TX
Vacancy
11.02%
Lease Rate
$14.04 /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%
$769,560
Cap Rate 7%
$549,686
Cap Rate 9%
$427,533
Alternative Uses
Best Use
Multifamily LT 5
$549.7K
$481.0K – $641.3K
NOI $38,478 @ 7.0% cap · market cap 7.54%
Second Best
Apartment 5plus
$506.1K
$442.8K – $590.4K
NOI $35,426 @ 7.0% cap · market cap 6.95%
Theoretical Best
Hotel Hospitality
$3.31M
$2.90M – $3.87M
NOI $231,990 @ 7.0% cap · market cap 45.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
270
Businesses Nearby
Explore this area
Business Placement
Demographics for 78570, TX
32,950
Population
10,701
Households
3.1
Avg Household Size
30
Median Age
12%
College-Educated
61%
High-School Grad
75.2 sq mi
ZIP Area
438
Density / Sq Mi
$39,890
Median Household Income
$22,648
Median Earnings
$686
Median Rent
$83,400
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Quadplex - Brand-new fourplex in Mercedes with 3-bedroom, 2-bath units, fence, and included appliances and carports.
Where is this quadplex located?
The property is located at 205 E Royal Palm Dr. Mercedes, TX.
What is the asking price?
The asking price for this property is $510,000.
What are key features of this property?
This property features: 0.2328‑acre lot with a 4,400 SF fourplex; Year built 2025; property condition under construction; Each unit offers a spacious 3‑bedroom, 2‑bath layout
