Four-Unit Multifamily
For Sale
$385,000
2904 Highland Avenue, McAllen, TX 78501
Fully leased multifamily asset with separately metered electricity and centralized water service.
Property Size3,384 SF
Days on Market68
Property Features for 2904 Highland Avenue
General Information
Standard status
Active
Size
3,384 SF
Total Parking Spaces
4
Property subtype
Multi Family Home
Occupancy
100%
Additional Details
Utilities to Site
Yes
Multifamily Units
4
Taxes and HOA fees
Annual Taxes
$5,126
Building Details
Building Size
3,384 SF
Year Built
2000
Buildings
2
Stories
2
Units
4
Listing Agency:
HCH Realty
(956) 353-2401
Listed By:
Cecilia Olivarez · License #686906
(956) 353-2401
Source:
Buyingandsellingmcallen
Added: Jun 24
Changed: Aug 29
Last Checked: Aug 25 at 9:10AM
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 HCH Realty
Investment Insights
Based on property information with market context.
This four-unit multifamily property contains 3,384 square feet and is currently leased across all units. Electrical service is individually metered for each unit, while water is supplied through one shared meter. The property was built in 2000 and carries an effective year built of 2010.
Located near Rowe High School, the property offers access to major roadways, shopping, and dining in McAllen. Its maintained condition and established leasing history provide a straightforward operating profile for multifamily ownership.
Located near Rowe High School, the property offers access to major roadways, shopping, and dining in McAllen. Its maintained condition and established leasing history provide a straightforward operating profile for multifamily ownership.
Key Highlights
- Four‑unit property with 3,384 square feet
- All four units are currently leased
- Individual electric meters serve each unit
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
$30,578
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
7.94%
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%
$611,560
$611.6K
Cap Rate 7%
$436,829
$436.8K
Cap Rate 9%
$339,756
$339.8K
Market Conditions
NOI Build-Up for 3,384 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
$46.7K $13.80/SF
− Vacancy
−$3.0K −$0.89/SF
EGI
$43.7K $12.91/SF
− OpEx
−$13.1K −$3.87/SF
NOI
$30.6K $9.04/SF
Area
McAllen, TX
Vacancy
6.46%
Lease Rate
$13.80 /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%
$611,560
Cap Rate 7%
$436,829
Cap Rate 9%
$339,756
Alternative Uses
Best Use
Multifamily LT 5
$436.8K
$382.2K – $509.6K
NOI $30,578 @ 7.0% cap · market cap 7.94%
Second Best
Apartment 5plus
$401.4K
$351.3K – $468.4K
NOI $28,101 @ 7.0% cap · market cap 7.30%
Theoretical Best
Office A
$918.9K
$804.0K – $1.07M
NOI $64,323 @ 7.0% cap · market cap 16.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
100%
Occupancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
499
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
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?
Quadplex - Fully leased multifamily asset with separately metered electricity and centralized water service.
Where is this quadplex located?
The property is located at 2904 Highland Avenue McAllen, TX.
What is the asking price?
The asking price for this property is $385,000.
What are key features of this property?
This property features: Four‑unit property with 3,384 square feet; All four units are currently leased; Individual electric meters serve each unit
