Fully Leased Mixed-Use
For Sale
$6,100,000
500 E Hackberry Ave, McAllen, TX 78501
Established commercial asset near major retail centers with parking for over 250 vehicles.
Property Size24,982 SF
Price / SF$244.18
Days on Market9
Property Features for 500 E Hackberry Ave
General Information
Standard status
Active
Size
24,982 SF
Occupancy
100%
Building Details
Year Built
1977
Listing Agency:
Coldwell Banker La Mansion
(951) 367-7025
Listed By:
Robert Bruno Macias
Source:
Aregtx
Added: Aug 16
Changed: Aug 22
Last Checked: Aug 23 at 8:05AM
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 Coldwell Banker La Mansion
Investment Insights
Based on property information with market context.
Hackberry Business Park is a fully leased mixed-use property constructed in 1977. The asset provides an established commercial setting with parking capacity for over 250 vehicles and is identified as an income-producing property.
The property is located at 500 E Hackberry Ave in McAllen, Texas, less than a mile from major retail shopping centers. Surrounding context includes established subdivisions, the V.A. Office, and McAllen Memorial High School. The site also offers the stated option to construct additional commercial and industrial buildings.
The property is located at 500 E Hackberry Ave in McAllen, Texas, less than a mile from major retail shopping centers. Surrounding context includes established subdivisions, the V.A. Office, and McAllen Memorial High School. The site also offers the stated option to construct additional commercial and industrial buildings.
Key Highlights
- Fully leased mixed‑use property at Hackberry Business Park
- Constructed in 1977
- Parking for over 250 vehicles
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
$334,447
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
5.48%
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%
$6,688,940
$6.7M
Cap Rate 7%
$4,777,814
$4.8M
Cap Rate 9%
$3,716,078
$3.7M
Market Conditions
NOI Build-Up for 24,982 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
$524.6K $21.00/SF
− Vacancy
−$78.7K −$3.15/SF
EGI
$445.9K $17.85/SF
− OpEx
−$111.5K −$4.46/SF
NOI
$334.4K $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%
$6,688,940
Cap Rate 7%
$4,777,814
Cap Rate 9%
$3,716,078
Alternative Uses
Best Use
Office B
$4.78M
$4.18M – $5.57M
NOI $334,447 @ 7.0% cap · market cap 5.48%
Second Best
Mixed Use
$4.34M
$3.79M – $5.06M
NOI $303,531 @ 7.0% cap · market cap 4.98%
Theoretical Best
Office A
$6.78M
$5.94M – $7.91M
NOI $474,858 @ 7.0% cap · market cap 7.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
1,122
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
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Established commercial asset near major retail centers with parking for over 250 vehicles.
Where is this mixed-use property located?
The property is located at 500 E Hackberry Ave McAllen, TX.
What is the asking price?
The asking price for this property is $6,100,000.
What are key features of this property?
This property features: Fully leased mixed‑use property at Hackberry Business Park; Constructed in 1977; Parking for over 250 vehicles
