Downstairs Retail Unit with
For Sale
$299,000
506 Closner Boulevard, Edinburg, TX 78539
COMMERCIAL - Edinburg, TX
Property Size2,000 SF
Lot Size0.09 Acres
Price / SF$149.50
Days on Market355
Property Features for 506 Closner Boulevard
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C
Parking
130
Parking features
Special Needs, Off Street, On Street
Exterior features
Balcony
Accessibility
Accessible Approach with Ramp
Appliances
Electric Water Heater, Water Heater (In Attic)
Subdivision
Alhambra Plaza Condos
Lot features
Downtown, Medical Complex, Office Complex
Directions
Just south of courthouse on Closner/Business 281.
Standard status
Active
APN
A26630000000A3
Size
2,000 SF
Lot size
0.09 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
3100
HOA Fee
$150 Monthly
Utilities
Heating system
Electric (Heating), Central
Cooling system
Electric, Central Air
Building Details
Year built
2002
Floors in Building
1
Building materials
Stucco
Roof type
Flat
Listing Agency:
Signature Properties
(956) 630-3100
Listed By:
J.c. Lowe
(956) 821-0547
Added: Sep 4, 2025
Changed: Aug 13
Last Checked: Aug 24 at 7:06PM
MLS# 480127
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 downstairs retail unit is one of three total units in the complex, with the other two located on the second floor. The current lease is month to month. The unit includes a balcony and is built with stucco construction and a flat roof. Amenities include an electric water heater and a water heater in the attic, and the space is served by central air with electric heating and central HVAC.
The property sits on a 0.09-acre lot. Parking is available with on-street, off-street, and special needs parking. Accessibility features include an accessible approach with a ramp.
Built in 2002, this storefront space provides a compact retail footprint at 2,000 square feet and is positioned within zoning designated as C.
The property sits on a 0.09-acre lot. Parking is available with on-street, off-street, and special needs parking. Accessibility features include an accessible approach with a ramp.
Built in 2002, this storefront space provides a compact retail footprint at 2,000 square feet and is positioned within zoning designated as C.
Key Highlights
- Downstairs retail unit in a three‑unit complex; other two units are on the second floor
- Current lease is month to month
- Balcony included
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
$22,289
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
7.45%
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%
$445,780
$445.8K
Cap Rate 7%
$318,414
$318.4K
Cap Rate 9%
$247,656
$247.7K
Market Conditions
NOI Build-Up for 2,000 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
$34.8K $17.40/SF
− Vacancy
−$3.0K −$1.48/SF
EGI
$31.8K $15.92/SF
− OpEx
−$9.6K −$4.78/SF
NOI
$22.3K $11.14/SF
Area
Edinburg, TX
Vacancy
8.50%
Lease Rate
$17.40 /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%
$445,780
Cap Rate 7%
$318,414
Cap Rate 9%
$247,656
Alternative Uses
Best Use
Retail
$318.4K
$278.6K – $371.5K
NOI $22,289 @ 7.0% cap · market cap 7.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$518.9K
$454.1K – $605.4K
NOI $36,326 @ 7.0% cap · market cap 12.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,210
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78539, TX
37,686
Population
15,759
Households
2.4
Avg Household Size
34
Median Age
37%
College-Educated
84%
High-School Grad
12.2 sq mi
ZIP Area
3,089
Density / Sq Mi
$64,864
Median Household Income
$38,413
Median Earnings
$1,034
Median Rent
$198,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Downstairs retail unit in a three-unit complex with a balcony, accessible ramp, and month-to-month lease.
Where is this storefront property located?
The property is located at 506 Closner Boulevard Edinburg, TX.
What is the asking price?
The asking price for this property is $299,000.
What are key features of this property?
This property features: Downstairs retail unit in a three‑unit complex; other two units are on the second floor; Current lease is month to month; Balcony included
