202 1St St Harlingen, TX 78550

Property Details for 202 1St St

Year built

1977

Lot size

0.56 lot acres

Property size

49,588 SF

Property type

Commercial real estate

APN

15-0000-0690-0050-00

APU

1500000690005000

Description

This exceptional five-story, 67,049 square-foot mixed-use building, known as "The Reese," is located at 202 S 1st St, Harlingen, TX 78550, in Cameron County. Built in 1927 and extensively renovated in 2021, this Class A property boasts 240 parking spaces on a 0.8-acre lot. The building is currently 100% occupied by a diverse tenant mix including a fine-dining restaurant, a dental office, and a well-established non-profit. Tenants are credit-rated, operating under a modified lease with annual fixed rent increases. The property features Class A finishes throughout, resulting from significant tenant and owner improvements exceeding seven million dollars. This investment presents a mitigated risk opportunity with stable cash flow and significant upside potential through annual rent bumps and asset appreciation. The GR zoning allows for a variety of uses. The fee-simple ownership offers a compelling value-add investment opportunity. Seller financing is available. This property offers a projected unlevered yield of 9% in year one, increasing to double digits by year five. With seller financing, projected returns include an IRR exceeding 21% over a 10-year hold, an average cash-on-cash return over 18%, and a 4x return on equity.

Location Insight

City

Harlingen

County

Cameron

State

Texas

Longitude

-97.696

Latitude

26.1914

CBSA code

15180

CBSA name

BROWNSVILLE-HARLINGEN, TX METROPOLITAN STATISTICAL AREA

Property Tax & Assessments