Marcus & Millichap is pleased to present the opportunity to acquire 46.02 acres of land at 208 North Victoria Road in Donna, Texas, just minutes East of McAllen, Texas. Positioned just a two-minute drive from Interstate 2, the property is located within the McAllen Market. The property has 865 feet of frontage along East Business 83 and 1,400 feet of frontage on North Victoria Road.
The highly renowned Don-Wes Market is situated on 8.8 acres of the property on a lease that provides $21,667 per month in monthly rent. While the lease is currently month-to-month, it has been in place for the last 25 years. The property offers investors the opportunity to secure a long-term lease with the Don-Wes Flea Market and develop additional retail on the remainder of the tract or redevelop the entire property for industrial or residential use.
The McAllen market contains 13.7 million square feet of retail space with a vacancy rate of 2.4 percent, and 33.9 million square feet of industrial space with a vacancy rate of 3.5 percent. Per Costar, the current annual rent growth for retail is 4.0 percent (five-year average is 3.2 percent), and annual rent growth for industrial is 6.7 percent (historical growth rate is 3.9%). From Q2 2022 through Q1 2023, retail absorption was a positive 150,000 square feet with 86,000 square feet of retail space under construction (representing less than 1.0 percent of inventory). For industrial, absorption was a positive 49,000 square feet over the last 12 months with 272,000 square feet of industrial space currently under construction.
The McAllen-Edinburg-Mission metro is located 250 miles south of San Antonio near the Texas-Mexico border and encompasses Hidalgo County. The metro’s proximity to Mexico makes trade and logistics important drivers of the local economy. The University of Texas Rio Grande Valley has Edinburg, McAllen, and Weslaco facilities. The Rio Grande River also runs through the area, providing recreational opportunities for locals and visitors. The metro is growing at a rapid pace and is expected to add 90,200 residents over the next five years. The metro’s location on the Texas-Mexico border has turned the area into a trade hub. As a result, several logistics companies are located there. The metro has a strong healthcare sector, encompassing roughly one-third of the local employment base. The region maintains the largest land port for fresh produce imports from Mexico, with 160,000 loads of produce transported in a typical year with volumes expected to increase in the future.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0060694)
