Storefront Business with Residential
For Sale
$800,000
5420 SOUTHMOST RD., Brownsville, TX 78520
Retail storefront sale includes merchandise, with residential space on the second floor.
Property Size3,860 SF
Price / SF$207.25
Days on Market271
Property Features for 5420 SOUTHMOST RD.
General Information
Standard status
Active
Size
3,860 SF
Property subtype
General Commercial
Amenities
3
15 Parking Spaces.
City Road.
Building Details
Year Built
1992
Stories
2
Listing Agency:
RCR Real Connect Realty
(956) 443-0115
Listed By:
Catalina Presas · License #0546920
(956) 459-4116
Source:
Xome
Added: Dec 10, 2025
Changed: Sep 2
Last Checked: Sep 7 at 4:42AM
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 RCR Real Connect Realty
Investment Insights
Based on property information with market context.
This business opportunity storefront is offered for sale with the merchandise included. The property also features residential space on the second floor.
The second-floor living area has tile flooring and ceiling fans throughout, providing functional comfort as part of the overall building layout.
Overall, the configuration combines a retail storefront with an upstairs residential component, offering a mixed-use presentation within the same property.
The second-floor living area has tile flooring and ceiling fans throughout, providing functional comfort as part of the overall building layout.
Overall, the configuration combines a retail storefront with an upstairs residential component, offering a mixed-use presentation within the same property.
Key Highlights
- Retail storefront sale includes merchandise
- Second‑floor residential space with tile flooring and ceiling fans throughout
- 15 parking spaces
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
$36,730
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
4.59%
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%
$734,600
$734.6K
Cap Rate 7%
$524,714
$524.7K
Cap Rate 9%
$408,111
$408.1K
Market Conditions
NOI Build-Up for 3,860 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
$55.6K $14.40/SF
− Vacancy
−$3.1K −$0.81/SF
EGI
$52.5K $13.59/SF
− OpEx
−$15.7K −$4.08/SF
NOI
$36.7K $9.52/SF
Area
Brownsville, TX
Vacancy
5.60%
Lease Rate
$14.40 /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%
$734,600
Cap Rate 7%
$524,714
Cap Rate 9%
$408,111
Alternative Uses
Best Use
Retail
$524.7K
$459.1K – $612.2K
NOI $36,730 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$664.6K
$581.6K – $775.4K
NOI $46,524 @ 7.0% cap · market cap 5.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
161
Businesses Nearby
23k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 72%
Dining 28%
Dollar General
Shops & Services
8,054 visits/mo
0.1 miles
Family Dollar
Shops & Services
7,758 visits/mo
0.3 miles
Church's Chicken
Dining
6,434 visits/mo
0.4 miles
One Stop
Shops & Services
1,141 visits/mo
0.0 miles
Demographics for 78520, TX
64,949
Population
22,543
Households
2.9
Avg Household Size
34
Median Age
23%
College-Educated
69%
High-School Grad
39.7 sq mi
ZIP Area
1,636
Density / Sq Mi
$47,331
Median Household Income
$27,529
Median Earnings
$842
Median Rent
$129,200
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 - Retail storefront sale includes merchandise, with residential space on the second floor.
Where is this storefront property located?
The property is located at 5420 SOUTHMOST RD. Brownsville, TX.
What is the asking price?
The asking price for this property is $800,000.
What are key features of this property?
This property features: Retail storefront sale includes merchandise; Second‑floor residential space with tile flooring and ceiling fans throughout; 15 parking spaces
