Downtown Mixed-Use Income
For Sale
$350,000
700 S Main Street, McAllen, TX 78501
COMMERCIAL - McAllen, TX
Property Size2,400 SF
Lot Size0.08 Acres
Price / SF$145.83
Days on Market113
Property Features for 700 S Main Street
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
8
Appliances
Electric Water Heater
Subdivision
Mcallen Addition
Lot features
Downtown
Directions
From the intersection of Old 83 and 10th St. travel South turn right on Houston Ave and travel west. Turn right on Main St. Property will be on left at the corner of Main and Galveston across the street from McAllen City Hall.
Standard status
Active
APN
M195000060000601
Size
2,400 SF
Lot size
0.08 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
3868
Utilities
Heating system
Central
Cooling system
Central Air
Building Details
Year built
1982
Floors in Building
1
Building materials
Block, Stucco
Roof type
Flat
Listing Agency:
Dolce Vita Realty
(956) 322-8478
Listed By:
Olga L Arriaga
(956) 827-5025
Added: May 11
Changed: Aug 4
Last Checked: Aug 31 at 2:06PM
MLS# 502106
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 downtown commercial building contains two leased units. The unit facing Main St. operates as a restaurant with a dining area and kitchen, and the rear space is leased to an office tenant. The property is currently 100% occupied by stable, long-term tenants, supporting income-producing use.
The building is located directly across from McAllen City Hall and is only minutes from South 10th Street. The listing notes it is also a short drive from the Expressway and an upcoming retail and community center.
With a compact downtown site and two distinct in-place tenants, the property offers a straightforward two-unit configuration for continued occupancy.
The building is located directly across from McAllen City Hall and is only minutes from South 10th Street. The listing notes it is also a short drive from the Expressway and an upcoming retail and community center.
With a compact downtown site and two distinct in-place tenants, the property offers a straightforward two-unit configuration for continued occupancy.
Key Highlights
- Downtown McAllen commercial building directly across from McAllen City Hall
- Two‑unit layout with 100% occupancy and stable, long‑term tenants
- Front unit facing Main St. operates as a restaurant with dining area and kitchen
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
$32,130
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
9.18%
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%
$642,600
$642.6K
Cap Rate 7%
$459,000
$459.0K
Cap Rate 9%
$357,000
$357.0K
Market Conditions
NOI Build-Up for 2,400 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
$50.4K $21.00/SF
− Vacancy
−$7.6K −$3.15/SF
EGI
$42.8K $17.85/SF
− OpEx
−$10.7K −$4.46/SF
NOI
$32.1K $13.39/SF
Area
McAllen, TX
Vacancy
15.00%
Lease Rate
$21.00 /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%
$642,600
Cap Rate 7%
$459,000
Cap Rate 9%
$357,000
Alternative Uses
Best Use
Specialty Retail
$524.3K
$458.8K – $611.7K
NOI $36,703 @ 7.0% cap · market cap 10.49%
Second Best
Office B
$459.0K
$401.6K – $535.5K
NOI $32,130 @ 7.0% cap · market cap 9.18%
Theoretical Best
Office A
$651.7K
$570.2K – $760.3K
NOI $45,619 @ 7.0% cap · market cap 13.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,465
Businesses Nearby
Under-served
Demand for This Use
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 Office 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?
Conventional restaurant - Two-unit commercial building with a Main Street-facing restaurant and a rear office tenant, 100% occupied.
Where is this conventional restaurant located?
The property is located at 700 S Main Street McAllen, TX.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Downtown McAllen commercial building directly across from McAllen City Hall; Two‑unit layout with 100% occupancy and stable, long‑term tenants; Front unit facing Main St. operates as a restaurant with dining area and kitchen
