Multi-Building NNN
For Sale
$1,250,000
2901 S Sugar Road, Pharr, TX 78577
Two-lot commercial asset with paved parking, loading access, extra storage, and multiple lease structures.
Property Size13,208 SF
Price / SF$94.64
Days on Market1416
Property Features for 2901 S Sugar Road
General Information
Standard status
Active
Size
13,208 SF
Property subtype
General Commercial
Additional Details
Cap Rate
5.72%
Taxes and HOA fees
Annual Taxes
$18,039
Amenities
Electric, A/C - Zone
3
Parking.
24 Parking Spaces. Paved Driveway, Off Street.
Security Lighting, Loading Dock, Extra Storage. City Road, Paved Road.
Building Details
Year Built
2004
Tenancy
Multi
Listing Agency:
(956) 821-0547
Listed By:
Signature Properties
(956) 821-0547
Source:
Xome
Added: Oct 17, 2022
Changed: Aug 30
Last Checked: Aug 31 at 12:46PM
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 Signature Properties
Investment Insights
Based on property information with market context.
This 13,208-square-foot commercial property includes multiple buildings across Trison Subdivision Lots 1 and 2. Constructed in 2004, the improvements provide electric service, zoned A/C, a loading dock, extra storage, security lighting, and 24 paved parking spaces with off-street access.
The property includes 2901 S Sugar Road and the adjacent building at 2905 S Sugar Road, which occupies a separate lot. Lease structures include an NNN lease for the primary occupant and modified gross leases for the additional tenants. The reported 5.72% CAP and 6.06% Cash on Cash ROI provide additional operating detail for evaluation.
The property includes 2901 S Sugar Road and the adjacent building at 2905 S Sugar Road, which occupies a separate lot. Lease structures include an NNN lease for the primary occupant and modified gross leases for the additional tenants. The reported 5.72% CAP and 6.06% Cash on Cash ROI provide additional operating detail for evaluation.
Key Highlights
- 13,208 SF across multiple buildings on Trison Subdivision Lots 1 and 2
- 24 paved parking spaces with off‑street access
- Includes loading dock, extra storage, and security lighting
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
$84,396
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
6.75%
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%
$1,687,920
$1.7M
Cap Rate 7%
$1,205,657
$1.2M
Cap Rate 9%
$937,733
$937.7K
Market Conditions
NOI Build-Up for 13,208 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
$106.2K $8.04/SF
− Vacancy
−$6.9K −$0.52/SF
EGI
$99.3K $7.52/SF
− OpEx
−$14.9K −$1.13/SF
NOI
$84.4K $6.39/SF
Area
Hidalgo County, TX
Vacancy
6.50%
Lease Rate
$8.04 /SF/Yr
Expense Ratio
15.00%
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%
$1,687,920
Cap Rate 7%
$1,205,657
Cap Rate 9%
$937,733
Alternative Uses
Best Use
Warehouse
$1.21M
$1.05M – $1.41M
NOI $84,396 @ 7.0% cap · market cap 6.75%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$9.95M
$8.70M – $11.61M
NOI $696,392 @ 7.0% cap · market cap 55.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
481
Businesses Nearby
Explore this area
Business Placement
Demographics for 78577, TX
79,937
Population
26,568
Households
3
Avg Household Size
30
Median Age
18%
College-Educated
70%
High-School Grad
26.0 sq mi
ZIP Area
3,075
Density / Sq Mi
$49,768
Median Household Income
$28,186
Median Earnings
$988
Median Rent
$111,500
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Two-lot commercial asset with paved parking, loading access, extra storage, and multiple lease structures.
Where is this nnn property located?
The property is located at 2901 S Sugar Road Pharr, TX.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 13,208 SF across multiple buildings on Trison Subdivision Lots 1 and 2; 24 paved parking spaces with off‑street access; Includes loading dock, extra storage, and security lighting
