8-Unit Two-Story Apartment
For Sale
$699,000
417 N 28th St, McAllen, TX 78501
Consistent apartment layout with two bedrooms and one-and-a-half baths in each residence.
Property Size6,486 SF
Price / SF$107.77
Days on Market8
Property Features for 417 N 28th St
General Information
Standard status
Active
Size
6,486 SF
Property subtype
Multi-Family
Units
Unit Mix
8 x 2BR/1.5BA
Multifamily Units
8
Building Details
Year Built
1994
Listing Agency:
Realty Executives RGV
Listed By:
Romayeo (Ronnie) R. Esparza · License #0609166
(956) 433-9557
Source:
Aregtx
Added: Sep 14
Last Checked: Sep 21 at 12:18PM
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 Realty Executives RGV
Investment Insights
Based on property information with market context.
This 8-unit apartment building contains 6,486 square feet and was constructed in 1994. Each residence spans two stories and includes 2 bedrooms and 1.5 baths, providing a consistent configuration across the property.
The property is located at 417 N 28th St in McAllen, Texas, within blocks of South Texas College and the McAllen convention center. Its eight residences and established construction offer a clearly defined multifamily format.
The property is located at 417 N 28th St in McAllen, Texas, within blocks of South Texas College and the McAllen convention center. Its eight residences and established construction offer a clearly defined multifamily format.
Key Highlights
- 8‑unit apartment building
- 6,486 square feet
- Each unit includes 2 bedrooms and 1.5 baths
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
$53,861
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
7.71%
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%
$1,077,220
$1.1M
Cap Rate 7%
$769,443
$769.4K
Cap Rate 9%
$598,456
$598.5K
Market Conditions
NOI Build-Up for 6,486 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
$105.1K $16.20/SF
− Vacancy
−$7.1K −$1.10/SF
EGI
$97.9K $15.10/SF
− OpEx
−$44.1K −$6.79/SF
NOI
$53.9K $8.30/SF
Area
McAllen, TX
Vacancy
6.80%
Lease Rate
$16.20 /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%
$1,077,220
Cap Rate 7%
$769,443
Cap Rate 9%
$598,456
Alternative Uses
Best Use
Apartment 5plus
$769.4K
$673.3K – $897.7K
NOI $53,861 @ 7.0% cap · market cap 7.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.76M
$1.54M – $2.05M
NOI $123,286 @ 7.0% cap · market cap 17.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
8
Residential units
Location Intelligence
Trade Area within ½ mile
899
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Apartment building - Consistent apartment layout with two bedrooms and one-and-a-half baths in each residence.
Where is this apartment building located?
The property is located at 417 N 28th St McAllen, TX.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: 8‑unit apartment building; 6,486 square feet; Each unit includes 2 bedrooms and 1.5 baths
