Commercial Building with Three
For Sale
Contact for pricing
2305 Southmost Rd, Brownsville, TX 78521
Three-unit commercial building with investment potential on corner lot.
Property Size3,200 SF
Price / SF$234.06
Days on Market1057
Property Features for 2305 Southmost Rd
General Information
Standard status
Active
Size
3,200 SF
Class
A
Total Parking Spaces
16
Property subtype
Retail
Zoning
Traditional Neighborhood Corridor (TN-C)
Occupancy
33%
Lease Type
Modified Gross
Building Details
Year Built
2019
Buildings
1
Stories
1
Units
3
Tenancy
Multi
Listing Agency:
Coastal Realty
Listed By:
Jimmy Barnard · License #TX 201217
Source:
Crexi
Added: Oct 17, 2023
Changed: Aug 25
Last Checked: Sep 6 at 1:17PM
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 Coastal Realty
Investment Insights
Based on property information with market context.
This commercial building features three units. Unit 1 is currently occupied by Payment 1 Financial. Units 2 and 3 require finishing. The property is located on the east corner of the intersection of Southmost Road (FM 1419) and E 23rd Street. The building has a total size of 3200 square feet, offering an opportunity for investors.
Key Highlights
- 3‑unit commercial building
- Tenant in Unit 1: Payment 1 Financial
- Units 2 & 3 need finish out
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
$30,450
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
4.07%
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%
$609,000
$609.0K
Cap Rate 7%
$435,000
$435.0K
Cap Rate 9%
$338,333
$338.3K
Market Conditions
NOI Build-Up for 3,200 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
$46.1K $14.40/SF
− Vacancy
−$2.6K −$0.81/SF
EGI
$43.5K $13.59/SF
− OpEx
−$13.0K −$4.08/SF
NOI
$30.4K $9.52/SF
Area
Brownsville, TX
Vacancy
5.60%
Lease Rate
$14.40 /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%
$609,000
Cap Rate 7%
$435,000
Cap Rate 9%
$338,333
Alternative Uses
Best Use
Retail
$435.0K
$380.6K – $507.5K
NOI $30,450 @ 7.0% cap · market cap 4.07%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$551.0K
$482.1K – $642.8K
NOI $38,569 @ 7.0% cap · market cap 5.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
586
Businesses Nearby
163k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 36%
Groceries 32%
Dining 24%
Apparel 5%
H-E-B
Groceries
52,071 visits/mo
0.4 miles
Dollar Tree
Shops & Services
20,974 visits/mo
0.3 miles
Circle K
Shops & Services
14,857 visits/mo
0.4 miles
Burger King
Dining
11,586 visits/mo
0.5 miles
Jack in the Box
Dining
11,030 visits/mo
0.4 miles
Demographics for 78521, TX
88,708
Population
29,576
Households
3
Avg Household Size
32
Median Age
15%
College-Educated
62%
High-School Grad
93.7 sq mi
ZIP Area
947
Density / Sq Mi
$41,276
Median Household Income
$24,781
Median Earnings
$864
Median Rent
$90,500
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Three-unit commercial building with investment potential on corner lot.
Where is this retail space located?
The property is located at 2305 Southmost Rd Brownsville, TX.
What is the asking price?
The asking price for this property is $749,000.
What are key features of this property?
This property features: 3‑unit commercial building; Tenant in Unit 1: Payment 1 Financial; Units 2 & 3 need finish out
