Versatile Industrial Warehouse
For Sale
Contact for pricing
514 N L Street, Harlingen, TX 78550
Convertible warehouse suitable for various business ventures.
Property Size45,110 SF
Price / SF$60.96
Days on Market1015
Property Features for 514 N L Street
General Information
Standard status
Active
Size
45,110 SF
Total Parking Spaces
80
Property subtype
Retail, Office, Industrial
Building Details
Year Built
1980
Listing Agency:
Encore Fine Properties
(956) 821-6170
Listed By:
Breann Nelson
Source:
Crexi
Added: Nov 11, 2023
Changed: Aug 19
Last Checked: Aug 22 at 4:19AM
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 Encore Fine Properties
Investment Insights
Based on property information with market context.
This property presents a versatile opportunity, previously used as a cold storage facility. The building's exterior has been freshly painted. The city has granted approval for buildout through structural engineering. Currently zoned as light industrial, the property can be rezoned to commercial if desired. There is existing electricity and lighting in 7 of the units. Potential uses include a business plaza with leased spaces for various businesses, office suites, a mercado, a vehicle storage facility, a mechanic shop, or an auto body/paint shop. The property is located in Harlingen, Texas.
Key Highlights
- Owner financing available.
- City approval granted for buildout through structural engineering.
- Potential for conversion into a business plaza with multiple leasable units.
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
$211,046
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
7.67%
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%
$4,220,920
$4.2M
Cap Rate 7%
$3,014,943
$3.0M
Cap Rate 9%
$2,344,956
$2.3M
Market Conditions
NOI Build-Up for 45,110 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
$319.4K $7.08/SF
− Vacancy
−$17.9K −$0.40/SF
EGI
$301.5K $6.68/SF
− OpEx
−$90.4K −$2.01/SF
NOI
$211.0K $4.68/SF
Area
Cameron County, TX
Vacancy
5.60%
Lease Rate
$7.08 /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%
$4,220,920
Cap Rate 7%
$3,014,943
Cap Rate 9%
$2,344,956
Alternative Uses
Best Use
Retail
$6.13M
$5.37M – $7.15M
NOI $429,245 @ 7.0% cap · market cap 15.61%
Second Best
Office B
$5.92M
$5.18M – $6.90M
NOI $414,110 @ 7.0% cap · market cap 15.06%
Theoretical Best
Healthcare Medical
$7.77M
$6.80M – $9.06M
NOI $543,702 @ 7.0% cap · market cap 19.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,111
Businesses Nearby
Under-served
Demand for This Use
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 Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Warehouse - Convertible warehouse suitable for various business ventures.
Where is this warehouse located?
The property is located at 514 N L Street Harlingen, TX.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: Owner financing available.; City approval granted for buildout through structural engineering.; Potential for conversion into a business plaza with multiple leasable units.
