Warehouse Property with NNN
For Sale
$1,250,000
2901 S Sugar Road, Pharr, TX 78577
COMMERCIAL - Pharr, TX
Property Size13,208 SF
Lot Size0.81 Acres
Price / SF$94.64
Days on Market237
Property Features for 2901 S Sugar Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C
Parking
24
Parking features
Off Street
Security features
Security Lighting
Exterior features
Storage
Appliances
Electric Water Heater
Subdivision
Trison
Directions
Just north of Souix Rd/La Vista Ave on Sugar Road.
Standard status
Active
APN
T764500000000200 /000100
Size
13,208 SF
Lot size
0.81 Acres
Taxes and HOA fees
Tax Year
2022
Tax Annual Amount
18039
Utilities
Heating system
Zoned, Electric (Heating)
Cooling system
Zoned, Electric
Building Details
Year built
2004
Floors in Building
2
Building materials
Block, Concrete
Roof type
Flat
Additional Structures
Storage
Listing Agency:
Signature Properties
(956) 630-3100
Listed By:
J.c. Lowe
(956) 821-0547
Added: Dec 30, 2025
Changed: Aug 4
Last Checked: Aug 24 at 1:06AM
MLS# 393997
Copyright © 2026 Greater McAllen Association 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.
Warehouse property on Trison Subdivision Lot 1 and Lot 2 at 2901 S Sugar Road, Pharr, TX 78577, with a total site area of 0.8083 acres. The offering includes multiple buildings; the adjacent building at 2905 Sugar Road is on a separate lot. Storage is listed among the exterior features.
Tenant leasing is described as follows: Excell is on a NNN lease, while the additional tenants are on modified gross leases. Building construction is described as block and concrete, with a flat roof. Heating and cooling are both listed as electric and zoned, and the property includes an electric water heater.
Parking is off street, and the property is zoned C. The provided financial metrics include a 5.72% cap rate and a 6.06% cash on cash ROI.
Tenant leasing is described as follows: Excell is on a NNN lease, while the additional tenants are on modified gross leases. Building construction is described as block and concrete, with a flat roof. Heating and cooling are both listed as electric and zoned, and the property includes an electric water heater.
Parking is off street, and the property is zoned C. The provided financial metrics include a 5.72% cap rate and a 6.06% cash on cash ROI.
Key Highlights
- Multiple buildings included on Trison Subdivision Lot 1 and Lot 2 at 2901 S Sugar Road, with 2905 Sugar Road on a separate lot
- 0.8083‑acre site with 13,208 SF total property size
- Excell on an NNN lease; additional tenants on modified gross leases
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
Location Intelligence
Trade Area within ½ mile
481
Businesses Nearby
Well-served
Demand for This Use
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Warehouse - Warehouse property with storage, built in 2004, totaling 13,208 SF on 0.8083 acres in C zoning.
Where is this warehouse 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: Multiple buildings included on Trison Subdivision Lot 1 and Lot 2 at 2901 S Sugar Road, with 2905 Sugar Road on a separate lot; 0.8083‑acre site with 13,208 SF total property size; Excell on an NNN lease; additional tenants on modified gross leases
