Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1101 East Farm to Market Road 495, in San Juan, Texas, partially occupied by the current owner Estancia Events/Estancia Garden. The subject property consists of approximately 48,300 square feet of mixed-use warehouse space and is situated on 4.23 acres of land. The three-building asset features 11 suites, 11 grade-level doors, 13 HVAC units, and 164 parking spaces. Adjacent to the rear building is an open plot of land that can accommodate an addition of up to 10,000 square feet. Located one mile north of Interstate 2, the property also has proximity to Interstate 69C to the west. With frontage along East Farm to Market Road 495, the property maintains high visibility to the 16,000 drivers that pass by each day on average (TXDot).
Upon the sale of the property, Estancia Events/Estancia Garden plans to execute a five-year triple-net sale-leaseback at $13.00 and $14.00 per square foot with 4.0 percent annual escalations in the last two years of the lease. Estancia Events is a premier events center in the Rio Grande Valley and nearby Laredo, specializing in spaces for weddings, Quinceañeras, and Sweet Sixteen celebrations. Estancia’s staff brings over a decade of experience and has hosted more than 1,000 successful events throughout the years. At 78 percent occupied, including six below-market month-to-month leases in place, the property also offers investors a value-add lease-up opportunity.
The subject property is located within the Outlying Hidalgo County submarket, maintaining a relatively small amount of industrial space at 10 million square feet but a substantial 14.7 million square feet of retail space. During the last quarter of the year, the industrial vacancy rate continued to buck the national trend, falling 100 basis points year-over-year to 3.3 percent. Despite the lack of availability, annual rent growth slowed to 1.0 percent in Q4 as the average industrial rent plateaued at $9.30 per square foot. As 2024 concluded, there was no industrial space under construction. While retail availability in Outlying Hidalgo County has been on the rise since mid-2022, the vacancy rate sat at only 2.8 percent in Q4. Similar to industrial, scarce retail space did not prevent annual rent growth from decelerating to 2.4 percent, pushing the average retail rent to $19.40 per square foot. With only 40,000 square feet under construction, the new supply of retail space will remain limited for the foreseeable future (CoStar).
McAllen-Harlingen-Brownsville Metroplex is composed of two metropolitan statistical areas, McAllen-Edinburg-Mission metro and Brownsville-Harlingen metro. Positioned along the Texas-Mexico border and Gulf Coast, the metroplex is home to a combined 1.3 million residents. The area’s strategic location fosters a thriving trade sector, making logistics important drivers of the local economy. The region maintains the largest land port for fresh produce imports from Mexico, with 160,000 loads of produce transported in a typical year. Manufacturing firms, including Keppel AmFELS and ESCO Marine, contribute to the area’s diverse economy. The region also boasts a growing aerospace industry, supported by SpaceX’s Boca Chica launch site. The Port of Brownsville serves as a vital deep-water seaport and Foreign Trade Zone, employing over 8,500 individuals. Education and healthcare are strong sectors, with institutions like the University of Texas Rio Grande Valley and major medical centers providing employment opportunities. The Rio Grande River also runs through the area, providing recreational opportunities for locals and visitors.
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. © 2025 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0490214)
