Mixed-Use Facility with Athletic
For Sale
$6,000,000
4309 W Business 83 Highway, McAllen, TX 78501
COMMERCIAL - McAllen, TX
Property Size27,750 SF
Lot Size2.56 Acres
Price / SF$216.22
Days on Market215
Property Features for 4309 W Business 83 Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
10
Appliances
Electric Water Heater
Subdivision
Bentsen Commerce
Directions
Property Is Located On South East Corner Of US Business Hwy 83 & Bentsen Road In McAllen, TX. https://share.google/jUwZWx6PlLGBUdETq
Standard status
Active
APN
B254300000000100
Size
27,750 SF
Lot size
2.56 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
45512
Utilities
Heating system
Electric (Heating), Central
Cooling system
Central Air, Electric
Building Details
Year built
2004
Floors in Building
1
Building materials
Aluminum Siding, Stucco
Roof type
Metal
Listing Agency:
Encore Fine Properties
(956) 821-6170
Listed By:
Martie Martinez
(956) 393-7365
Added: Jan 16
Changed: Aug 13
Last Checked: Aug 19 at 8:06AM
MLS# 485568
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This mixed-use commercial facility features a combination warehouse and fully equipped athletic gym/training center. The 29,550 square foot building sits on a 2.5+ acre lot. The property offers 22-foot clear ceiling height, four roll-up doors, HVAC throughout, and concrete floors. The layout is flexible and divisible. The gym area includes 22-foot ceilings, a full-size hardwood basketball court, a volleyball training area, a martial arts room, a weight training area with equipment, an incline ramp for training, private men's and women's restrooms, and a retail/office front area. Currently operating as a private athletic training center and vacant warehouse, this versatile property is ideal for sports/fitness, warehouse use, or redevelopment. The location along W. Bus. Hwy 83 offers convenient access on Bentsen Rd, with close proximity to Interstate Hwy 2, great visibility, and high traffic count. The property also includes a 2,684 square foot brick home, featuring 4 bedrooms and 3 bathrooms with some recent updates.
Key Highlights
- 29,550 SF mixed‑use commercial building with warehouse and fully equipped athletic gym/training center.
- Includes a 2,684 SqFt brick home with 4 beds/3 baths.
- Excellent location on W. Bus. Hwy 83 with convenient access to Bentsen Rd and close proximity to Interstate Hwy 2, offering great visibility and high traffic count.
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
$204,645
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
3.41%
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%
$4,092,900
$4.1M
Cap Rate 7%
$2,923,500
$2.9M
Cap Rate 9%
$2,273,833
$2.3M
Market Conditions
NOI Build-Up for 27,750 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
$249.8K $9.00/SF
− Vacancy
−$9.0K −$0.32/SF
EGI
$240.8K $8.68/SF
− OpEx
−$36.1K −$1.30/SF
NOI
$204.6K $7.37/SF
Area
McAllen, TX
Vacancy
3.60%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
15.00%
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%
$4,092,900
Cap Rate 7%
$2,923,500
Cap Rate 9%
$2,273,833
Alternative Uses
Best Use
Warehouse
$2.92M
$2.56M – $3.41M
NOI $204,645 @ 7.0% cap · market cap 3.41%
Second Best
Flex RnD
$2.46M
$2.15M – $2.87M
NOI $171,926 @ 7.0% cap · market cap 2.87%
Theoretical Best
Office A
$7.54M
$6.59M – $8.79M
NOI $527,472 @ 7.0% cap · market cap 8.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
22 ft
Clear height
4
Drive-in doors
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,080
Businesses Nearby
Under-served
Demand for This Use
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
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Versatile property ideal for sports/fitness, warehouse, or redevelopment.
Where is this flex space located?
The property is located at 4309 W Business 83 Highway McAllen, TX.
What is the asking price?
The asking price for this property is $6,000,000.
What are key features of this property?
This property features: 29,550 SF mixed‑use commercial building with warehouse and fully equipped athletic gym/training center.; Includes a 2,684 SqFt brick home with 4 beds/3 baths.; Excellent location on W. Bus. Hwy 83 with convenient access to Bentsen Rd and close proximity to Interstate Hwy 2, offering great visibility and high traffic count.
