Homebuilders See Growth Coming To Mercedes

Oscar Zarate looked across the Rio Grande Valley for development opportunities in new home construction and saw one market emerging.

“Mercedes is the mid-point to everything in the (Rio Grande) Valley,’’ said the homebuilder who owns Zarate Homes & Designs. “There are people who have wanted to live in Mercedes, but there were no lots available.’’

Zarate is filling that need with his 185-lot Valley Ranch Estates on Mile 1 E Road, just a handful of miles from the Rio Grande Valley Premium Outlets and with fast access to Expressway 83. Zarate broke ground on his development in July and is looking ahead to the first new homes at Valley Ranch.

The builder is capitalizing on a trend he and other developers see. The McAllen area – especially along the expressway – has reached a saturation point when it comes to open space for development, he said. The opportunities are moving east to Mercedes and the Mid-Valley, Zarate said.

“We’re seeing everything coming this way,’’ Zarate said of the Mercedes area. “Open land, location and access to the expressway are key factors. Mercedes and the Mid-Valley have all three.’’

Seeing Opportunities

Zarate is a Mercedes resident who is bullish on his community and doing his part to improve the city.

“I see one of my jobs as being to get the city of Mercedes going,’’ he said. “I’m working with the city manager and leadership to see how we can colloborate to drive more rooftops and get more (retail) anchor tenants here.’’

Fred Gonzalez, the president of the Mercedes Chamber of Commerce is one of those leaders and commended Zarate for his efforts in helping to spark more growth in the city.

“It’s full steam ahead,’’ Gonzalez said of new home construction in Mercedes. “We have three other neighborhoods that will be breaking ground soon.’’

Zarate Homes is active across the Valley and most especially in Mercedes, La Feria, and some outlying sections of Harlingen that are beginning to see growth.

“These smaller communities and some of the rural areas have so much potential,’’ Zarate said. “What we’re doing generates attention. We’re bringing a lot of value to smaller cities.’’

Zarate is offering substantial discounts on lot purchases at his Mercedes development for buyers who work in the health care and law enforcement fields, as well as military families. He sees commuter convenience for those working for major hospitals in Harlingen and in the upper Valley area and the many law enforcement officers employed by the Border Patrol. Mercedes with its ready access to the expressway and being a regional midpoint makes it an ideal spot for commuters driving east-west in the Valley.

“I know we’re going to do really well in Mercedes,’’ Zarate said of Valley Ranch Estates and other developments coming to the Mid-Valley area.

• Ricardo D. Cavazos
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