Prime Retail Development
For Sale
$5,000,000
3471 Old Highway 77, Brownsville, TX 78520
25,902 sqft theater for retail conversion in Brownsville, TX.
Property Size25,902 SF
Price / SF$193.04
Days on Market177
Property Features for 3471 Old Highway 77
General Information
Standard status
Active
Size
25,902 SF
Property subtype
Retail
Building Details
Year Built
1990
Listing Agency:
Coldwell Banker Commercial Rio Grande Valley
(956) 451-2983
Listed By:
Daniel Galvan · License #561680
(956) 451-2983
Source:
Cbcworldwide
Added: Mar 5
Changed: Jul 6
Last Checked: Apr 9 at 9:00PM
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 Coldwell Banker Commercial Rio Grande Valley
Investment Insights
Based on property information with market context.
This 25,902 sqft free-standing theater presents a development and retail opportunity in Brownsville, TX. Situated at the intersection of Ruben M. Torres Boulevard and IH-69, the site benefits from visibility, accessibility, and traffic. The property is located adjacent to Lowe’s and surrounded by national retailers, within the city’s retail corridor. The size, location, and stand-alone presence of this property make it suitable for conversion into entertainment, dining, fitness, or specialty retail.
Key Highlights
- Prime location at the intersection of Ruben M. Torres Boulevard and IH‑69.
- High visibility and accessibility with steady traffic flow.
- Large 25,902 sqft free‑standing building.
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
$246,471
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
4.93%
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%
$4,929,420
$4.9M
Cap Rate 7%
$3,521,014
$3.5M
Cap Rate 9%
$2,738,567
$2.7M
Market Conditions
NOI Build-Up for 25,902 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
$373.0K $14.40/SF
− Vacancy
−$20.9K −$0.81/SF
EGI
$352.1K $13.59/SF
− OpEx
−$105.6K −$4.08/SF
NOI
$246.5K $9.52/SF
Area
Brownsville, TX
Vacancy
5.60%
Lease Rate
$14.40 /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%
$4,929,420
Cap Rate 7%
$3,521,014
Cap Rate 9%
$2,738,567
Alternative Uses
Best Use
Retail
$3.52M
$3.08M – $4.11M
NOI $246,471 @ 7.0% cap · market cap 4.93%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$4.46M
$3.90M – $5.20M
NOI $312,192 @ 7.0% cap · market cap 6.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
828
Businesses Nearby
587k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 46%
Apparel 35%
Shops & Services 8%
Home Improvements & Furnishings 6%
Dillard's
Apparel
80,990 visits/mo
0.4 miles
JCPenney
Apparel
59,667 visits/mo
0.3 miles
DICK'S Sporting Goods
Apparel
56,410 visits/mo
0.3 miles
Bubba's 33
Dining
43,280 visits/mo
0.2 miles
McDonald's
Dining
33,950 visits/mo
0.2 miles
Demographics for 78520, TX
64,949
Population
22,543
Households
2.9
Avg Household Size
34
Median Age
23%
College-Educated
69%
High-School Grad
39.7 sq mi
ZIP Area
1,636
Density / Sq Mi
$47,331
Median Household Income
$27,529
Median Earnings
$842
Median Rent
$129,200
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?
Retail space - 25,902 sqft theater for retail conversion in Brownsville, TX.
Where is this retail space located?
The property is located at 3471 Old Highway 77 Brownsville, TX.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: Prime location at the intersection of Ruben M. Torres Boulevard and IH‑69.; High visibility and accessibility with steady traffic flow.; Large 25,902 sqft free‑standing building.
