Conventional Restaurant with Metal
For Sale
$5,000,000
601 W Expressway 83, McAllen, TX 78503
COMMERCIAL - McAllen, TX
Property Size13,585 SF
Lot Size1.57 Acres
Price / SF$368.05
Days on Market187
Property Features for 601 W Expressway 83
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
150
Parking features
Special Needs
Accessibility
Accessible Approach with Ramp
Appliances
Electric Water Heater
Subdivision
Savannah Park
Directions
Continue on I-2/US-83 W to McAllen. Take the exit toward TX-336/2nd St/10th St from I-2/US-83 W Continue on W Frontage Rd. Drive to S 6th St and your destination will be to the right.
Standard status
Active
APN
S200500000002A00
Size
13,585 SF
Lot size
1.57 Acres
Taxes and HOA fees
Tax Year
2022
Tax Annual Amount
44893
Utilities
Heating system
Electric (Heating), Central
Cooling system
Electric, Central Air
Building Details
Year built
1991
Floors in Building
1
Building materials
Stucco
Roof type
Metal
Listing Agency:
Big Realty
(956) 465-0011
Listed By:
Jorge L. Zambrano
(956) 800-3623
Added: Feb 17
Changed: Aug 4
Last Checked: Aug 23 at 12:06PM
MLS# 398453
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 conventional restaurant property is set on a 1.5696-acre lot and includes 13,585 SF of space. Constructed in 1991 with stucco exterior materials and a metal roof, it is equipped with central heating and electric (heating), along with central air electric cooling. An electric water heater is also included.
The restaurant is located at 601 W Expressway 83 in McAllen, TX 78503. It is described as well established and highly frequented within a high-traffic area, with close proximity to hotels, Simon Mall, a hospital, and McAllen International Airport.
For guest access and on-site accommodations, the property features an accessible approach with a ramp and includes special needs parking.
The restaurant is located at 601 W Expressway 83 in McAllen, TX 78503. It is described as well established and highly frequented within a high-traffic area, with close proximity to hotels, Simon Mall, a hospital, and McAllen International Airport.
For guest access and on-site accommodations, the property features an accessible approach with a ramp and includes special needs parking.
Key Highlights
- 1.5696‑acre lot at 601 W Expressway 83, McAllen, TX 78503
- 13,585 SF conventional restaurant property
- Built in 1991 with stucco exterior and metal roof
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
$207,753
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
4.16%
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%
$4,155,060
$4.2M
Cap Rate 7%
$2,967,900
$3.0M
Cap Rate 9%
$2,308,367
$2.3M
Market Conditions
NOI Build-Up for 13,585 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
$293.4K $21.60/SF
− Vacancy
−$16.4K −$1.21/SF
EGI
$277.0K $20.39/SF
− OpEx
−$69.3K −$5.10/SF
NOI
$207.8K $15.29/SF
Area
McAllen, TX
Vacancy
5.60%
Lease Rate
$21.60 /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%
$4,155,060
Cap Rate 7%
$2,967,900
Cap Rate 9%
$2,308,367
Alternative Uses
Best Use
Specialty Retail
$2.97M
$2.60M – $3.46M
NOI $207,753 @ 7.0% cap · market cap 4.16%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.69M
$3.23M – $4.30M
NOI $258,224 @ 7.0% cap · market cap 5.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
2,046
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78503, TX
23,604
Population
8,090
Households
2.9
Avg Household Size
35
Median Age
25%
College-Educated
71%
High-School Grad
19.2 sq mi
ZIP Area
1,229
Density / Sq Mi
$48,765
Median Household Income
$27,514
Median Earnings
$1,087
Median Rent
$130,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- House of China — 2001 S 10th St, McAllen, TX 78503
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Conventional restaurant built in 1991 with central electric HVAC, electric water heater, and metal roof.
Where is this conventional restaurant located?
The property is located at 601 W Expressway 83 McAllen, TX.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: 1.5696‑acre lot at 601 W Expressway 83, McAllen, TX 78503; 13,585 SF conventional restaurant property; Built in 1991 with stucco exterior and metal roof
