Office Building with Individual
For Sale
$480,000
407 W Nolana Ave, McAllen, TX 78504
12 individual office spaces with a ceramic-tile common area and Wi-Fi provided for tenants.
Property Size2,100 SF
Price / SF$228.57
Days on Market138
Property Features for 407 W Nolana Ave
General Information
Standard status
Active
Size
2,100 SF
Additional Details
Cap Rate
8.5%
Office Units
12
Amenities
Wi-Fi
Building Details
Year Built
1979
Listing Agency:
Vela Commercial Real Estate
Listed By:
Rogelio Vela
Source:
Aregtx
Added: Apr 24
Changed: Aug 23
Last Checked: Sep 7 at 11:05AM
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 Vela Commercial Real Estate
Investment Insights
Based on property information with market context.
This office property is configured as 12 individual offices, supported by a common area featuring ceramic tile flooring. Wi-Fi is provided for tenants.
The asset is located at 407 W Nolana Avenue in McAllen, TX 78504. Public remarks indicate strong occupancy, including a history of high occupancy and a waiting list of tenants.
From an investment perspective, the offering is described as selling at an 8.5% CAP rate with a reported IRR of 20%.
The asset is located at 407 W Nolana Avenue in McAllen, TX 78504. Public remarks indicate strong occupancy, including a history of high occupancy and a waiting list of tenants.
From an investment perspective, the offering is described as selling at an 8.5% CAP rate with a reported IRR of 20%.
Key Highlights
- 12 individual office spaces with a ceramic‑tile common area
- Wi‑Fi provided for tenants
- Currently selling at an 8.5% CAP Rate
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
$28,114
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
5.86%
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%
$562,280
$562.3K
Cap Rate 7%
$401,629
$401.6K
Cap Rate 9%
$312,378
$312.4K
Market Conditions
NOI Build-Up for 2,100 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
$44.1K $21.00/SF
− Vacancy
−$6.6K −$3.15/SF
EGI
$37.5K $17.85/SF
− OpEx
−$9.4K −$4.46/SF
NOI
$28.1K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
25.00%
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%
$562,280
Cap Rate 7%
$401,629
Cap Rate 9%
$312,378
Alternative Uses
Best Use
Office B
$401.6K
$351.4K – $468.6K
NOI $28,114 @ 7.0% cap · market cap 5.86%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$570.2K
$499.0K – $665.3K
NOI $39,917 @ 7.0% cap · market cap 8.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Office units
Location Intelligence
Trade Area within ½ mile
1,522
Businesses Nearby
Explore this area
Business Placement
Demographics for 78504, TX
56,830
Population
21,417
Households
2.7
Avg Household Size
35
Median Age
40%
College-Educated
86%
High-School Grad
19.6 sq mi
ZIP Area
2,899
Density / Sq Mi
$77,627
Median Household Income
$41,632
Median Earnings
$1,178
Median Rent
$203,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - 12 individual office spaces with a ceramic-tile common area and Wi-Fi provided for tenants.
Where is this office units located?
The property is located at 407 W Nolana Ave McAllen, TX.
What is the asking price?
The asking price for this property is $480,000.
What are key features of this property?
This property features: 12 individual office spaces with a ceramic‑tile common area; Wi‑Fi provided for tenants; Currently selling at an 8.5% CAP Rate
