McAllen Assisted Living Conversion
For Sale
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4513 W US Highway 83, McAllen, TX 78501
8,040 SF McAllen building suitable for various commercial uses.
Property Size8,040 SF
Price / SF$118.16
Days on Market897
Property Features for 4513 W US Highway 83
General Information
Standard status
Active
Size
8,040 SF
Total Parking Spaces
17
Property subtype
Office
Building Details
Year Built
2003
Listing Agency:
Star Properties Real Estate
Listed By:
Diane McLarty
Source:
Crexi
Added: Mar 16, 2024
Changed: Aug 15
Last Checked: Aug 28 at 7:29PM
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 Star Properties Real Estate
Investment Insights
Based on property information with market context.
Located in McAllen, this 8,040 square foot building was most recently used as an assisted living center. The ADA compliant building features a large, open center area suitable for meetings or group activities. It contains 14 resident rooms, each with a full bathroom. There are also 6 private offices, a reception desk, and a front lobby. The kitchen includes a grease trap, RO, and water softener. The property has striped, asphalt parking for 17 cars, along with green space in the side and back yards. Potential uses include a law office, dental or medical office, corporate office, or day care. Some work is needed.
Key Highlights
- Ideal location in McAllen suitable for various business types (office, daycare, etc.).
- Large 8,040 square foot ADA compliant building.
- Features 14 resident rooms, each with a full bathroom.
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
$66,765
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
7.03%
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%
$1,335,300
$1.3M
Cap Rate 7%
$953,786
$953.8K
Cap Rate 9%
$741,833
$741.8K
Market Conditions
NOI Build-Up for 8,040 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
$130.2K $16.20/SF
− Vacancy
−$8.9K −$1.10/SF
EGI
$121.4K $15.10/SF
− OpEx
−$54.6K −$6.79/SF
NOI
$66.8K $8.30/SF
Area
McAllen, TX
Vacancy
6.80%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
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%
$1,335,300
Cap Rate 7%
$953,786
Cap Rate 9%
$741,833
Alternative Uses
Best Use
Office B
$1.54M
$1.35M – $1.79M
NOI $107,636 @ 7.0% cap · market cap 11.33%
Second Best
Healthcare Medical
$1.49M
$1.30M – $1.74M
NOI $104,198 @ 7.0% cap · market cap 10.97%
Theoretical Best
Office A
$2.18M
$1.91M – $2.55M
NOI $152,824 @ 7.0% cap · market cap 16.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
326
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Assisted living facility - 8,040 SF McAllen building suitable for various commercial uses.
Where is this assisted living facility located?
The property is located at 4513 W US Highway 83 McAllen, TX.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Ideal location in McAllen suitable for various business types (office, daycare, etc.).; Large 8,040 square foot ADA compliant building.; Features **14 resident rooms, each with a full bathroom.**
