Restaurant with Highway
For Sale
$5,000,000
601 W Expressway 83, McAllen, TX 78503
Restaurant property with central air, paved driveway, handicap parking, and access from a city road and US highway.
Property Size13,585 SF
Price / SF$368.05
Days on Market129
Property Features for 601 W Expressway 83
General Information
Standard status
Active
Size
13,585 SF
Building Details
Year Built
1991
Listing Agency:
Big Realty
(956) 465-0011
Listed By:
Jorge L. Zambrano
Source:
Aregtx
Added: Apr 24
Changed: Aug 29
Last Checked: Jul 18 at 2:37AM
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 Big Realty
Investment Insights
Based on property information with market context.
This conventional restaurant property was built in 1991 and includes central air with electric service. The site provides 150 parking spaces, a paved driveway, designated handicap parking, and handicapped access. Its physical configuration supports restaurant use while offering established site improvements for customers and staff.
The property is located at 601 W Expressway 83 in McAllen, Texas, with access from a city road and US highway. Hotels, Simon Mall, a hospital, and McAllen International Airport are identified as nearby points of interest.
The property is located at 601 W Expressway 83 in McAllen, Texas, with access from a city road and US highway. Hotels, Simon Mall, a hospital, and McAllen International Airport are identified as nearby points of interest.
Key Highlights
- 150 parking spaces with paved driveway and handicap parking
- Central air with electric service
- Handicapped access provided
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
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 - Restaurant property with central air, paved driveway, handicap parking, and access from a city road and US highway.
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: 150 parking spaces with paved driveway and handicap parking; Central air with electric service; Handicapped access provided
