Mixed-Use Commercial
For Sale
$3,000,000
615 617 609 W Us Highway 83, McAllen, TX 78501
For sale bundle includes three income-producing buildings with mixed-use zoning along US Highway 83 in McAllen.
Property Size23,862 SF
Price / SF$125.72
Days on Market271
Property Features for 615 617 609 W Us Highway 83
General Information
Standard status
Active
Size
23,862 SF
Zoning
mixed use
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$29,203
Listing Agency:
Jade Real Estate LLC
(956) 534-7917
Listed By:
Jose Alberto Lopez lll
(956) 638-9816
Source:
Exprealty
Added: Dec 2, 2025
Changed: Aug 20
Last Checked: Aug 29 at 2:09PM
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 Jade Real Estate LLC
Investment Insights
Based on property information with market context.
This for-sale commercial bundle includes three income-producing buildings, offered together as a single portfolio. The properties are zoned for mixed use and provide versatile space options for retail, office, or warehouse operations, depending on the needs of the incoming owner or tenants.
The buildings are located at 615, 617, and 609 W US Highway 83 in McAllen, Texas, positioned along US Highway 83 as described in the remarks. The seller notes the location provides visibility, and the offering includes owner financing availability; call for terms.
The combination of multiple buildings and mixed-use zoning makes this package suitable for buyers looking for a multi-asset investment or a self-use strategy using more than one structure.
The buildings are located at 615, 617, and 609 W US Highway 83 in McAllen, Texas, positioned along US Highway 83 as described in the remarks. The seller notes the location provides visibility, and the offering includes owner financing availability; call for terms.
The combination of multiple buildings and mixed-use zoning makes this package suitable for buyers looking for a multi-asset investment or a self-use strategy using more than one structure.
Key Highlights
- Commercial bundle includes three income‑producing buildings in McAllen
- All three buildings are located along high‑traffic US Highway 83
- Zoned for mixed use, allowing versatility for retail, office, or warehouse operations
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
$175,973
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
5.87%
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%
$3,519,460
$3.5M
Cap Rate 7%
$2,513,900
$2.5M
Cap Rate 9%
$1,955,256
$2.0M
Market Conditions
NOI Build-Up for 23,862 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
$214.8K $9.00/SF
− Vacancy
−$7.7K −$0.32/SF
EGI
$207.0K $8.68/SF
− OpEx
−$31.1K −$1.30/SF
NOI
$176.0K $7.37/SF
Area
McAllen, TX
Vacancy
3.60%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
15.00%
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%
$3,519,460
Cap Rate 7%
$2,513,900
Cap Rate 9%
$1,955,256
Alternative Uses
Best Use
Retail
$4.87M
$4.26M – $5.68M
NOI $340,589 @ 7.0% cap · market cap 11.35%
Second Best
Mixed Use
$4.14M
$3.62M – $4.83M
NOI $289,923 @ 7.0% cap · market cap 9.66%
Theoretical Best
Office A
$6.48M
$5.67M – $7.56M
NOI $453,569 @ 7.0% cap · market cap 15.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
2,396
Businesses Nearby
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - For sale bundle includes three income-producing buildings with mixed-use zoning along US Highway 83 in McAllen.
Where is this mixed-use property located?
The property is located at 615 617 609 W Us Highway 83 McAllen, TX.
What is the asking price?
The asking price for this property is $3,000,000.
What are key features of this property?
This property features: Commercial bundle includes three income‑producing buildings in McAllen; All three buildings are located along high‑traffic US Highway 83; Zoned for mixed use, allowing versatility for retail, office, or warehouse operations
