Renovated 12-Unit Apartment
For Sale
$760,000
406 S 6th, Donna, TX 78537
Two-bedroom, one-bath residences are complemented by an on-site laundry area for tenants.
Property Size7,525 SF
Price / SF$100
Days on Market45
Property Features for 406 S 6th
General Information
Standard status
Active
Size
7,525 SF
Property subtype
Multi-Family
Additional Details
Multifamily Units
12
Amenities
laundry area
Building Details
Year Built
1995
Listing Agency:
Trademark Real Estate Group
(956) 867-2340
Listed By:
David Tobar · License #801068092
Source:
Ryanandbrian
Added: Jul 19
Changed: Aug 29
Last Checked: Aug 31 at 1:05PM
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 Trademark Real Estate Group
Investment Insights
Based on property information with market context.
This 12-unit apartment building contains 7,525 square feet and was built in 1995. Each residence offers a two-bedroom, one-bath configuration, and all 12 units have been remodeled. A dedicated laundry area provides an additional shared amenity for residents.
The property is located at 406 S 6th in Donna, Texas, placing the apartment community within the city of Donna. The combination of renovated interiors, consistent unit layouts, and on-site laundry creates a clearly defined multifamily configuration.
The property is located at 406 S 6th in Donna, Texas, placing the apartment community within the city of Donna. The combination of renovated interiors, consistent unit layouts, and on-site laundry creates a clearly defined multifamily configuration.
Key Highlights
- 12‑unit apartment building with 7,525 square feet
- All 12 units have been remodeled
- Two‑bedroom, one‑bath unit layouts
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
$60,587
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
7.97%
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%
$1,211,740
$1.2M
Cap Rate 7%
$865,529
$865.5K
Cap Rate 9%
$673,189
$673.2K
Market Conditions
NOI Build-Up for 7,525 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
$124.6K $16.56/SF
− Vacancy
−$14.5K −$1.92/SF
EGI
$110.2K $14.64/SF
− OpEx
−$49.6K −$6.59/SF
NOI
$60.6K $8.05/SF
Area
Hidalgo County, TX
Vacancy
11.60%
Lease Rate
$16.56 /SF/Yr
Expense Ratio
45.00%
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%
$1,211,740
Cap Rate 7%
$865,529
Cap Rate 9%
$673,189
Alternative Uses
Best Use
Apartment 5plus
$865.5K
$757.3K – $1.01M
NOI $60,587 @ 7.0% cap · market cap 7.97%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$5.67M
$4.96M – $6.61M
NOI $396,756 @ 7.0% cap · market cap 52.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
Location Intelligence
Trade Area within ½ mile
417
Businesses Nearby
Explore this area
Business Placement
Demographics for 78537, TX
51,962
Population
16,683
Households
3.1
Avg Household Size
28
Median Age
10%
College-Educated
54%
High-School Grad
57.6 sq mi
ZIP Area
902
Density / Sq Mi
$36,331
Median Household Income
$20,354
Median Earnings
$744
Median Rent
$74,700
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?
Apartment building - Two-bedroom, one-bath residences are complemented by an on-site laundry area for tenants.
Where is this apartment building located?
The property is located at 406 S 6th Donna, TX.
What is the asking price?
The asking price for this property is $760,000.
What are key features of this property?
This property features: 12‑unit apartment building with 7,525 square feet; All 12 units have been remodeled; Two‑bedroom, one‑bath unit layouts
