Modern Plaza in Prime
For Sale
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4000 N Westgate Drive, Weslaco, TX 78599
Commercial plaza built in 2023, suitable for retail or office.
Property Size7,384 SF
Price / SF$243.77
Days on Market665
Property Features for 4000 N Westgate Drive
General Information
Standard status
Active
Size
7,384 SF
Total Parking Spaces
30
Property subtype
Land
Building Details
Year Built
2023
Listing Agency:
SANETI Realty Group
(956) 215-1125
Listed By:
Jose Mendez
Source:
Crexi
Added: Nov 2, 2024
Changed: Aug 13
Last Checked: Aug 26 at 1:59PM
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 SANETI Realty Group
Investment Insights
Based on property information with market context.
This commercial plaza, constructed in 2023, is situated in a prime location, offering convenient access to the expressway and proximity to a thriving business community. The property features modern architecture and versatile spaces suitable for various retail or office applications. Currently, a successful daycare occupies the property with 2 years remaining on its lease. The property is designed to attract high foot traffic and provides excellent visibility. Ample parking and easy access enhance its appeal. The property, with a size of 7384 square feet, is positioned to capitalize on the area's growing demand, making it suitable for businesses seeking to establish themselves in a bustling location with strong growth potential.
Key Highlights
- Prime location minutes from the expressway and surrounded by a vibrant business community.
- Modern construction built in 2023 with contemporary architecture.
- Currently occupied by a successful daycare with 2 years remaining on its lease.
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
$99,700
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
5.54%
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%
$1,994,000
$2.0M
Cap Rate 7%
$1,424,286
$1.4M
Cap Rate 9%
$1,107,778
$1.1M
Market Conditions
NOI Build-Up for 7,384 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
$151.5K $20.52/SF
− Vacancy
−$9.1K −$1.23/SF
EGI
$142.4K $19.29/SF
− OpEx
−$42.7K −$5.79/SF
NOI
$99.7K $13.50/SF
Area
Hidalgo County, TX
Vacancy
6.00%
Lease Rate
$20.52 /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%
$1,994,000
Cap Rate 7%
$1,424,286
Cap Rate 9%
$1,107,778
Alternative Uses
Best Use
Retail
$1.42M
$1.25M – $1.66M
NOI $99,700 @ 7.0% cap · market cap 5.54%
Second Best
—
—
no second resolved use
Theoretical Best
Hotel Hospitality
$5.56M
$4.87M – $6.49M
NOI $389,321 @ 7.0% cap · market cap 21.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
35
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78599, TX
32,500
Population
9,945
Households
3.3
Avg Household Size
29
Median Age
16%
College-Educated
67%
High-School Grad
26.5 sq mi
ZIP Area
1,226
Density / Sq Mi
$55,939
Median Household Income
$27,841
Median Earnings
$954
Median Rent
$113,300
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?
Shopping center - Commercial plaza built in 2023, suitable for retail or office.
Where is this shopping center located?
The property is located at 4000 N Westgate Drive Weslaco, TX.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Prime location minutes from the expressway and surrounded by a vibrant business community.; Modern construction built in 2023 with contemporary architecture.; Currently occupied by a successful daycare with 2 years remaining on its lease.
