Bayfront 50-Room
For Sale
$4,500,000
Pending
901 Padre Boulevard, South Padre Island, TX 78597
Commercial Sale, South Padre Island, TX
Property Size30,258 SF
Lot Size0.97 Acres
Days on Market137
Property Features for 901 Padre Boulevard
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
52
Parking features
Off Street
Accessibility
Accessible Approach with Ramp
Appliances
Water Heater (Other Location)
Subdivision
Padre Beach Acres
Directions
Go North on Padre Blvd after exiting the causeway. The hotel is a little under half a mile down the road on your left hand side.
Standard status
Pending
APN
6764100030005000
Size
30,258 SF
Lot size
0.97 Acres
Taxes and HOA fees
Tax Year
2023
Tax Annual Amount
32782
Utilities
Heating system
Central
Cooling system
Central Air, Window Unit(s), Wall Unit(s)
Water front features
Waterfront
Water front
1
Building Details
Year built
2000
Floors in Building
4
Building materials
Stucco
Roof type
Flat
Listing Agency:
Effective Real Estate
(956) 322-8522
Listed By:
Ryan J. Mcdaniel
(956) 299-2111
Added: May 14
Changed: Sep 7
Last Checked: Sep 27 at 12:06PM
MLS# 413171
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 50-room hotel occupies a 30,258-square-foot building on approximately 0.974 acres at 901 Padre Boulevard in South Padre Island. Constructed in 2000, the property features stucco construction, a flat roof, central heating, and a combination of central air, window units, and wall units. Off-street parking and an accessible approach with ramp are also provided.
The waterfront property is a short distance from the beach and within walking distance of several retailers. South Padre Island is described as a drive-to beach destination with a 34-mile coastline, nature tourism attractions, wind and water recreation, an entertainment district, and local restaurants. The hotel is located in Cameron County, Texas, within ZIP Code 78597.
The waterfront property is a short distance from the beach and within walking distance of several retailers. South Padre Island is described as a drive-to beach destination with a 34-mile coastline, nature tourism attractions, wind and water recreation, an entertainment district, and local restaurants. The hotel is located in Cameron County, Texas, within ZIP Code 78597.
Key Highlights
- 50‑room waterfront hotel
- 30,258 square feet on 0.974 acres
- Constructed in 2000 with stucco exterior and flat roof
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
$232,835
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
5.17%
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%
$4,656,700
$4.7M
Cap Rate 7%
$3,326,214
$3.3M
Cap Rate 9%
$2,587,056
$2.6M
Market Conditions
NOI Build-Up for 30,258 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
$544.6K $18.00/SF
− Vacancy
−$54.5K −$1.80/SF
EGI
$490.2K $16.20/SF
− OpEx
−$257.3K −$8.51/SF
NOI
$232.8K $7.69/SF
Area
Cameron County, TX
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$4,656,700
Cap Rate 7%
$3,326,214
Cap Rate 9%
$2,587,056
Alternative Uses
Best Use
Hotel Hospitality
$3.33M
$2.91M – $3.88M
NOI $232,835 @ 7.0% cap · market cap 5.17%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$5.21M
$4.56M – $6.08M
NOI $364,694 @ 7.0% cap · market cap 8.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
300
Businesses Nearby
Explore this area
Business Placement
Demographics for 78597, TX
2,479
Population
5,895
Households
0.4
Avg Household Size
56
Median Age
53%
College-Educated
92%
High-School Grad
8.8 sq mi
ZIP Area
282
Density / Sq Mi
$61,357
Median Household Income
$36,843
Median Earnings
$1,421
Median Rent
$508,800
Median Home Value
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Frequently Asked Questions
What type of property is this?
Hotel - Waterfront lodging property with off-street parking, ramp access, and multiple cooling systems.
Where is this hotel located?
The property is located at 901 Padre Boulevard South Padre Island, TX.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: 50‑room waterfront hotel; 30,258 square feet on 0.974 acres; Constructed in 2000 with stucco exterior and flat roof
