Zoned Commercial Automotive
For Sale
$349,000
4320 International Boulevard, Mercedes, TX 78570
Automotive shop property on Commercial zoning near franchise businesses, sold as-is with redevelopment potential.
Property Size4,480 SF
Price / SF$77.90
Days on Market387
Property Features for 4320 International Boulevard
General Information
Standard status
Active
Size
4,480 SF
Property subtype
General Commercial
Zoning
Commercial
Taxes and HOA fees
Annual Taxes
$3,200
Amenities
Window Air Conditioning
4 Parking Spaces.
Workshop, Extra Storage. City Road.
Building Details
Year Built
2004
Listing Agency:
(956) 535-1156
Listed By:
Keller Williams Lrgv
(956) 535-1156
Source:
Xome
Added: Jul 27, 2025
Changed: Aug 14
Last Checked: Aug 16 at 3:17AM
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 Keller Williams Lrgv
Investment Insights
Based on property information with market context.
This property was formerly used as a shop to repair tractors and lawnmowers and is being sold as-is, with the owner not performing any repairs. The site is commercially zoned and is positioned for buyers who want to redevelop the existing automotive shop footprint for a new business use.
The property is located on International Boulevard in Mercedes, Texas, described as a very high-traffic area, and is close to several franchise businesses and growing development.
Buyers should review zoning and redevelopment plans as part of their due diligence, since the property is presented in its current condition.
The property is located on International Boulevard in Mercedes, Texas, described as a very high-traffic area, and is close to several franchise businesses and growing development.
Buyers should review zoning and redevelopment plans as part of their due diligence, since the property is presented in its current condition.
Key Highlights
- Commercial property in Mercedes on International Blvd in a high‑traffic area
- Former automotive/tractor and lawnmower repair shop; offers redevelopment potential for other businesses
- Zoned commercial for business use
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
$23,575
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
6.76%
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%
$471,500
$471.5K
Cap Rate 7%
$336,786
$336.8K
Cap Rate 9%
$261,944
$261.9K
Market Conditions
NOI Build-Up for 4,480 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
$36.0K $8.04/SF
− Vacancy
−$2.3K −$0.52/SF
EGI
$33.7K $7.52/SF
− OpEx
−$10.1K −$2.26/SF
NOI
$23.6K $5.26/SF
Area
Hidalgo County, TX
Vacancy
6.50%
Lease Rate
$8.04 /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%
$471,500
Cap Rate 7%
$336,786
Cap Rate 9%
$261,944
Alternative Uses
Best Use
Retail
$864.1K
$756.1K – $1.01M
NOI $60,490 @ 7.0% cap · market cap 17.33%
Second Best
Industrial
$336.8K
$294.7K – $392.9K
NOI $23,575 @ 7.0% cap · market cap 6.76%
Theoretical Best
Hotel Hospitality
$3.37M
$2.95M – $3.94M
NOI $236,208 @ 7.0% cap · market cap 67.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
38
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78570, TX
32,950
Population
10,701
Households
3.1
Avg Household Size
30
Median Age
12%
College-Educated
61%
High-School Grad
75.2 sq mi
ZIP Area
438
Density / Sq Mi
$39,890
Median Household Income
$22,648
Median Earnings
$686
Median Rent
$83,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Auto Glass Shop — 5031 N International Blvd, Weslaco, TX 78599
- Parra Tire Shop — FM 1015, Mercedes, TX 78570
- Mad Sounds — 4418 N International Blvd, Weslaco, TX 78599
- Tire Shop Pina — 3310 N International Blvd, Weslaco, TX 78596
Frequently Asked Questions
What type of property is this?
Auto shop - Automotive shop property on Commercial zoning near franchise businesses, sold as-is with redevelopment potential.
Where is this auto shop located?
The property is located at 4320 International Boulevard Mercedes, TX.
What is the asking price?
The asking price for this property is $349,000.
What are key features of this property?
This property features: Commercial property in Mercedes on International Blvd in a high‑traffic area; Former automotive/tractor and lawnmower repair shop; offers redevelopment potential for other businesses; Zoned commercial for business use
