Harlingen Four-Unit Investment
For Sale
Contact for pricing
Pending
722 Sonesta Dr, Harlingen, TX 78550
Well-managed four-unit property in a prime location with cash flow.
Property Size4,256 SF
Days on Market202
Property Features for 722 Sonesta Dr
General Information
Standard status
Pending
Size
4,256 SF
Class
A
Total Parking Spaces
6
Property subtype
Multifamily
Occupancy
100%
Investment Type
Stabilized
Building Details
Year Built
2004
Buildings
1
Stories
2
Units
4
Listing Agency:
THE FENNEGAN GROUP, INC
Listed By:
Michelle Fennegan · License #TX 342065
Source:
Crexi
Added: Jan 21
Changed: Aug 8
Last Checked: Jul 24 at 3:12PM
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 THE FENNEGAN GROUP, INC
Investment Insights
Based on property information with market context.
This four-unit property presents an investment opportunity in a location with access to schools, a walking trail, and retail stores, with convenient access to major roads. The property is situated in Harlingen, which features a steady rental market and attracts tenants from throughout the Rio Grande Valley due to its central location. The Rio Grande Valley is considered one of the fastest-growing areas in Texas. The property includes four two-bedroom units. Each unit is separately metered for electricity and water. Each unit features ceramic tile floors, spacious open floor plans, full-size washer/dryer connections, ceiling fans, and vaulted ceilings in the bedrooms. The property size is 4,256 square feet.
Key Highlights
- Steady cash flow with upside potential in rents.
- Separately metered for electricity and water, increasing cash flow.
- Located in a strong rental market in the rapidly growing Rio Grande Valley.
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
$35,113
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
7.82%
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%
$702,260
$702.3K
Cap Rate 7%
$501,614
$501.6K
Cap Rate 9%
$390,144
$390.1K
Market Conditions
NOI Build-Up for 4,256 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
$53.6K $12.60/SF
− Vacancy
−$3.5K −$0.81/SF
EGI
$50.2K $11.79/SF
− OpEx
−$15.0K −$3.54/SF
NOI
$35.1K $8.25/SF
Area
Cameron County, TX
Vacancy
6.46%
Lease Rate
$12.60 /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%
$702,260
Cap Rate 7%
$501,614
Cap Rate 9%
$390,144
Alternative Uses
Best Use
Multifamily LT 5
$501.6K
$438.9K – $585.2K
NOI $35,113 @ 7.0% cap · market cap 7.82%
Second Best
Apartment 5plus
$460.0K
$402.5K – $536.7K
NOI $32,201 @ 7.0% cap · market cap 7.17%
Theoretical Best
Healthcare Medical
$732.8K
$641.2K – $855.0K
NOI $51,297 @ 7.0% cap · market cap 11.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
203
Businesses Nearby
Explore this area
Business Placement
Demographics for 78550, TX
56,038
Population
22,347
Households
2.5
Avg Household Size
35
Median Age
22%
College-Educated
77%
High-School Grad
94.2 sq mi
ZIP Area
595
Density / Sq Mi
$51,524
Median Household Income
$32,065
Median Earnings
$863
Median Rent
$120,500
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Quadplex - Well-managed four-unit property in a prime location with cash flow.
Where is this quadplex located?
The property is located at 722 Sonesta Dr Harlingen, TX.
What is the asking price?
The asking price for this property is $449,000.
What are key features of this property?
This property features: Steady cash flow with upside potential in rents.; Separately metered for electricity and water, increasing cash flow.; Located in a strong rental market in the rapidly growing Rio Grande Valley.
