Mixed-Use Plaza with Flexible
For Sale
$579,900
325 Kings Hwy. Unit 3, Brownsville, TX 78521
Former daycare facility with multiple interior areas and potential office or retail applications.
Property Size3,366 SF
Price / SF$172.28
Days on Market31
Property Features for 325 Kings Hwy. Unit 3
General Information
Standard status
Active
Size
3,366 SF
Total Parking Spaces
18
Building Details
Year Built
1994
Listing Agency:
Rio Realty
(956) 243-3566
Listed By:
Dalia Hernandez
Source:
Accessrealtyrgv
Added: Jul 31
Changed: Aug 29
Last Checked: Aug 29 at 1:42PM
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 Rio Realty
Investment Insights
Based on property information with market context.
This 3,366 SF mixed-use plaza at 325 Kings Hwy. Unit 3 in Brownsville was built in 1994 and formerly operated as a daycare facility. The interior includes three large areas, six bathrooms, one full bath with a shower room, and wood-look tile throughout. The layout can accommodate multiple uses, including offices and retail stores.
The property includes 18 parking spaces, providing dedicated on-site parking for occupants and visitors. Owner financing is available, adding flexibility to the purchase structure.
The property includes 18 parking spaces, providing dedicated on-site parking for occupants and visitors. Owner financing is available, adding flexibility to the purchase structure.
Key Highlights
- 3,366 SF mixed‑use plaza built in 1994
- Former daycare layout with three large interior areas
- Six bathrooms plus one full bath with shower room
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
$34,081
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
5.88%
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%
$681,620
$681.6K
Cap Rate 7%
$486,871
$486.9K
Cap Rate 9%
$378,678
$378.7K
Market Conditions
NOI Build-Up for 3,366 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
$60.6K $18.00/SF
− Vacancy
−$6.1K −$1.80/SF
EGI
$54.5K $16.20/SF
− OpEx
−$20.4K −$6.07/SF
NOI
$34.1K $10.13/SF
Area
Brownsville, TX
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$681,620
Cap Rate 7%
$486,871
Cap Rate 9%
$378,678
Alternative Uses
Best Use
Mixed Use
$486.9K
$426.0K – $568.0K
NOI $34,081 @ 7.0% cap · market cap 5.88%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$579.6K
$507.1K – $676.2K
NOI $40,570 @ 7.0% cap · market cap 7.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,093
Businesses Nearby
Explore this area
Business Placement
Demographics for 78521, TX
88,708
Population
29,576
Households
3
Avg Household Size
32
Median Age
15%
College-Educated
62%
High-School Grad
93.7 sq mi
ZIP Area
947
Density / Sq Mi
$41,276
Median Household Income
$24,781
Median Earnings
$864
Median Rent
$90,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Former daycare facility with multiple interior areas and potential office or retail applications.
Where is this mixed-use property located?
The property is located at 325 Kings Hwy. Unit 3 Brownsville, TX.
What is the asking price?
The asking price for this property is $579,900.
What are key features of this property?
This property features: 3,366 SF mixed‑use plaza built in 1994; Former daycare layout with three large interior areas; Six bathrooms plus one full bath with shower room
