Downstairs Retail
For Sale
$299,000
506 S Closner Blvd, Edinburg, TX 78539
Downstairs unit within a multi-tenant retail complex, currently operating on a month-to-month lease.
Property Size2,000 SF
Price / SF$149.50
Days on Market343
Property Features for 506 S Closner Blvd
General Information
Standard status
Active
Size
2,000 SF
Taxes and HOA fees
Annual Taxes
$3,100
Listing Agency:
Signature Properties
(956) 821-0547
Listed By:
J.C. Lowe
(956) 821-0547
Source:
Exprealty
Added: Sep 4, 2025
Changed: Aug 11
Last Checked: Aug 11 at 10:07AM
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 Signature Properties
Investment Insights
Based on property information with market context.
This offering is for the downstairs retail unit within a complex that contains three total units. The two remaining units are located on the second floor, creating a two-level retail arrangement. The unit is currently leased on a month-to-month basis.
The property is located at 506 S Closner Blvd in Edinburg, Texas. As part of a small, multi-unit complex, the space is positioned to serve retail operations that benefit from direct street-level access associated with ground-floor tenancy.
For buyers or tenant-users, the month-to-month lease provides flexibility around timing and occupancy planning. This unit configuration can also fit brands or operators looking for a dedicated storefront within a compact building that separates ground-floor and second-floor uses across three tenants.
The property is located at 506 S Closner Blvd in Edinburg, Texas. As part of a small, multi-unit complex, the space is positioned to serve retail operations that benefit from direct street-level access associated with ground-floor tenancy.
For buyers or tenant-users, the month-to-month lease provides flexibility around timing and occupancy planning. This unit configuration can also fit brands or operators looking for a dedicated storefront within a compact building that separates ground-floor and second-floor uses across three tenants.
Key Highlights
- Downstairs unit within a multi‑tenant retail complex
- Complex has 3 total units: 1 downstairs unit and 2 second‑floor units
- Unit is currently on a month‑to‑month lease
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
497
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 unit within a multi-tenant retail complex, currently operating on a month-to-month lease.
Where is this storefront property located?
The property is located at 506 S Closner Blvd 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 unit within a multi‑tenant retail complex; Complex has 3 total units: 1 downstairs unit and 2 second‑floor units; Unit is currently on a month‑to‑month lease
