Renovated 5-Unit Apartment
For Sale
$675,000
502 N 15th St, McAllen, TX 78501
Updated multifamily property with dedicated mini-split cooling in every apartment and water and trash included in rent.
Property Size4,008 SF
Price / SF$168.41
Days on Market42
Property Features for 502 N 15th St
General Information
Standard status
Active
Size
4,008 SF
Property subtype
Multi-Family
Additional Details
Multifamily Units
5
Building Details
Year Built
1973
Listing Agency:
RE/MAX RGV Commercial Group
(956) 330-3674
Listed By:
Noe Alejandro Lopez · License #564041
Source:
Aregtx
Added: Jul 20
Changed: Aug 29
Last Checked: Aug 6 at 8:29AM
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 RE/MAX RGV Commercial Group
Investment Insights
Based on property information with market context.
This renovated apartment property contains 5 units and was originally built in 1973. Improvements include electrical updates, refinished and painted exterior stucco, and new A/C mini-split systems installed in each apartment. Water and trash are included in the rent, providing a defined utility arrangement for occupants.
The property occupies the corner of 15th Street and Ebony in McAllen’s Historic Palm District, with a downtown setting. A rent roll is available for review, and the completed improvements provide a clear summary of the property’s current physical upgrades.
The property occupies the corner of 15th Street and Ebony in McAllen’s Historic Palm District, with a downtown setting. A rent roll is available for review, and the completed improvements provide a clear summary of the property’s current physical upgrades.
Key Highlights
- 5‑unit apartment complex
- Renovated with electrical improvements and refinished, painted exterior stucco
- New A/C mini‑splits installed in each apartment
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
$33,283
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
4.93%
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%
$665,660
$665.7K
Cap Rate 7%
$475,471
$475.5K
Cap Rate 9%
$369,811
$369.8K
Market Conditions
NOI Build-Up for 4,008 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
$64.9K $16.20/SF
− Vacancy
−$4.4K −$1.10/SF
EGI
$60.5K $15.10/SF
− OpEx
−$27.2K −$6.79/SF
NOI
$33.3K $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%
$665,660
Cap Rate 7%
$475,471
Cap Rate 9%
$369,811
Alternative Uses
Best Use
Apartment 5plus
$475.5K
$416.0K – $554.7K
NOI $33,283 @ 7.0% cap · market cap 4.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.09M
$952.3K – $1.27M
NOI $76,184 @ 7.0% cap · market cap 11.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Location Intelligence
Trade Area within ½ mile
2,532
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 Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Updated multifamily property with dedicated mini-split cooling in every apartment and water and trash included in rent.
Where is this apartment building located?
The property is located at 502 N 15th St McAllen, TX.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: 5‑unit apartment complex; Renovated with electrical improvements and refinished, painted exterior stucco; New A/C mini‑splits installed in each apartment
