202 1st St Harlingen, TX 78550-9115

This exceptional five-story, 67,049 square-foot mixed-use building, known as "The Reese," is located at 202 S 1st St, Harlingen, TX 78550, in Cameron County. Built in 1927 and extensively renovated in 2021, this Class A property boasts 240 parking spaces on a 0.8-acre lot. The building is currently 100% occupied by a diverse tenant mix including a fine-dining restaurant, a dental office, and a well-established non-profit. Tenants are credit-rated, operating under a modified lease with annual fixed rent increases. The property features Class A finishes throughout, resulting from significant tenant and owner improvements exceeding seven million dollars. This investment presents a mitigated risk opportunity with stable cash flow and significant upside potential through annual rent bumps and asset appreciation. The GR zoning allows for a variety of uses. The fee-simple ownership offers a compelling value-add investment opportunity. Seller financing is available. This property offers a projected unlevered yield of 9% in year one, increasing to double digits by year five. With seller financing, projected returns include an IRR exceeding 21% over a 10-year hold, an average cash-on-cash return over 18%, and a 4x return on equity.