Mixed-Use Property with Existing
For Sale
Contact for pricing
2708 FM 88, Weslaco, TX 78596
Signalized intersection property with commercial and residential improvements, B-2 zoning, and access to surrounding retail anchors.
Property Size9,035 SF
Price / SF$154.95
Days on Market135
Property Features for 2708 FM 88
General Information
Standard status
Active
Size
9,035 SF
Total Parking Spaces
75
Property subtype
Retail, Mixed Use, Special Purpose
Zoning
B-2
Building Details
Year Built
1983
Stories
1
Units
75
Listing Agency:
SVN | Hanna Solutions Commerical Real Estate
Listed By:
Mark Hanna · License #9007459
Source:
Crexi
Added: Apr 18
Changed: Aug 30
Last Checked: Aug 30 at 8:52AM
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 SVN | Hanna Solutions Commerical Real Estate
Investment Insights
Based on property information with market context.
This 2.31-acre mixed-use property includes a 6,420 SF commercial building and a separate 2,615 SF residential building. The existing improvements support multiple occupancy configurations, including commercial operations with on-site residential space. The property was built in 1983 and carries B-2 zoning.
Located at a signalized intersection on FM 88 in north Weslaco, the site is less than one mile from Interstate 2. Nearby national retailers include Walmart, Academy, JCPenney, and Dollar Tree. The combination of existing buildings, excess land, and established retail surroundings provides a range of documented redevelopment and reuse considerations, subject to applicable approvals. Current zoning and the existing improvements may accommodate continued mixed-use planning, while any rezoning would require City approval.
Located at a signalized intersection on FM 88 in north Weslaco, the site is less than one mile from Interstate 2. Nearby national retailers include Walmart, Academy, JCPenney, and Dollar Tree. The combination of existing buildings, excess land, and established retail surroundings provides a range of documented redevelopment and reuse considerations, subject to applicable approvals. Current zoning and the existing improvements may accommodate continued mixed-use planning, while any rezoning would require City approval.
Key Highlights
- 2.31 acres with 9,035 SF of total improvements
- 6,420 SF commercial building plus 2,615 SF residential building
- B‑2 zoning with all B‑1 and B‑2 permitted uses
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
$121,992
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
8.71%
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%
$2,439,840
$2.4M
Cap Rate 7%
$1,742,743
$1.7M
Cap Rate 9%
$1,355,467
$1.4M
Market Conditions
NOI Build-Up for 9,035 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
$185.4K $20.52/SF
− Vacancy
−$11.1K −$1.23/SF
EGI
$174.3K $19.29/SF
− OpEx
−$52.3K −$5.79/SF
NOI
$122.0K $13.50/SF
Area
Hidalgo County, TX
Vacancy
6.00%
Lease Rate
$20.52 /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%
$2,439,840
Cap Rate 7%
$1,742,743
Cap Rate 9%
$1,355,467
Alternative Uses
Best Use
Retail
$1.74M
$1.52M – $2.03M
NOI $121,992 @ 7.0% cap · market cap 8.71%
Second Best
Mixed Use
$1.31M
$1.14M – $1.52M
NOI $91,479 @ 7.0% cap · market cap 6.53%
Theoretical Best
Hotel Hospitality
$6.81M
$5.95M – $7.94M
NOI $476,370 @ 7.0% cap · market cap 34.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
54
Businesses Nearby
Explore this area
Business Placement
Demographics for 78596, TX
37,329
Population
15,824
Households
2.4
Avg Household Size
36
Median Age
21%
College-Educated
75%
High-School Grad
40.1 sq mi
ZIP Area
931
Density / Sq Mi
$53,797
Median Household Income
$31,618
Median Earnings
$917
Median Rent
$92,800
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Signalized intersection property with commercial and residential improvements, B-2 zoning, and access to surrounding retail anchors.
Where is this mixed-use property located?
The property is located at 2708 FM 88 Weslaco, TX.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: 2.31 acres with 9,035 SF of total improvements; 6,420 SF commercial building plus 2,615 SF residential building; B‑2 zoning with all B‑1 and B‑2 permitted uses
