Apartment Community
For Sale
Contact for pricing
2305 W Mile 3 Rd, Mission, TX 78574
Mission multifamily community with operational improvement and rental optimization potential.
Property Size76,738 SF
Price / SF$104.25
Days on Market158
Property Features for 2305 W Mile 3 Rd
General Information
Standard status
Active
Size
76,738 SF
Class
B
Property subtype
Multifamily
Occupancy
92%
Investment Type
Value Add
Net Operating Income
$569,581
Building Details
Year Built
2017
Buildings
9
Stories
2
Units
78
Listing Agency:
eXp Commercial
Listed By:
Cesar Cepeda · License #9010212
Source:
Crexi
Added: Apr 3
Changed: Aug 13
Last Checked: Sep 6 at 12:01AM
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 eXp Commercial
Investment Insights
Based on property information with market context.
Mission Del Sol Apartments is a multifamily apartment community offered for sale as a value-add opportunity. The property is described as well-maintained by current ownership, with an emphasis on achievable upside through operational and rental optimization, including improvements to leasing strategy and collections, along with expense efficiencies and management professionalization.
The community is located at 2305 W Mile 3 Rd in Mission, Texas, within Hidalgo County. The offering materials note demand for workforce and affordable housing tied to population growth and workforce expansion in the Mission–McAllen MSA.
The business plan described for this investment includes aligning rents with market comps, improving tenant profile and leasing standards, optimizing expenses (including potential property tax reassessment), and completing light exterior and interior upgrades intended to support curb appeal and tenant retention. The property is presented as an attractive basis relative to replacement cost.
The community is located at 2305 W Mile 3 Rd in Mission, Texas, within Hidalgo County. The offering materials note demand for workforce and affordable housing tied to population growth and workforce expansion in the Mission–McAllen MSA.
The business plan described for this investment includes aligning rents with market comps, improving tenant profile and leasing standards, optimizing expenses (including potential property tax reassessment), and completing light exterior and interior upgrades intended to support curb appeal and tenant retention. The property is presented as an attractive basis relative to replacement cost.
Key Highlights
- 2017‑built Mission, TX multifamily community
- Value‑add upside with below‑market rents for rent normalization and improved leasing strategy
- Operational improvement opportunities, including enhanced collections and expense efficiency
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
$617,854
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
7.72%
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%
$12,357,080
$12.4M
Cap Rate 7%
$8,826,486
$8.8M
Cap Rate 9%
$6,865,044
$6.9M
Market Conditions
NOI Build-Up for 76,738 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
$1.27M $16.56/SF
− Vacancy
−$147.4K −$1.92/SF
EGI
$1.12M $14.64/SF
− OpEx
−$505.5K −$6.59/SF
NOI
$617.9K $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%
$12,357,080
Cap Rate 7%
$8,826,486
Cap Rate 9%
$6,865,044
Alternative Uses
Best Use
Apartment 5plus
$8.83M
$7.72M – $10.30M
NOI $617,854 @ 7.0% cap · market cap 7.72%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$57.80M
$50.58M – $67.43M
NOI $4,046,011 @ 7.0% cap · market cap 50.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
244
Businesses Nearby
Explore this area
Business Placement
Demographics for 78574, TX
63,627
Population
18,309
Households
3.5
Avg Household Size
28
Median Age
16%
College-Educated
58%
High-School Grad
51.9 sq mi
ZIP Area
1,226
Density / Sq Mi
$52,536
Median Household Income
$28,029
Median Earnings
$807
Median Rent
$119,000
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?
Multifamily property - Mission multifamily community with operational improvement and rental optimization potential.
Where is this multifamily property located?
The property is located at 2305 W Mile 3 Rd Mission, TX.
What is the asking price?
The asking price for this property is $8,000,000.
What are key features of this property?
This property features: 2017‑built Mission, TX multifamily community; Value‑add upside with below‑market rents for rent normalization and improved leasing strategy; Operational improvement opportunities, including enhanced collections and expense efficiency
