Building Details

Floors in Building 1

Flooring type Concrete

Listing Agency: Avanti Realty Services LLC Show Phone

Listed By: Alex Mukai · License #99826 Show Phone

Added: Feb 18 Changed: Sep 4 Last Checked: Sep 25 at 10:06PM

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MLS# 1801391

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Investment Insights

Based on property information with market context.

The property includes a 1,714-square-foot carryout restaurant designed with drive-through capacity, indoor seating, and outdoor seating. Concrete flooring and a bathroom are among the reported interior features. The restaurant occupies two parcels totaling approximately 0.7 acres, with public water and public sewer service.

Located along Highway 231/431 in Hazel Green, the site provides approximately 200 feet of road frontage. The property is positioned in north Madison County, with stated proximity to customers in north Alabama and southern Tennessee. The offering includes an NNN lease structure, with the owner carrying no responsibility under the reported lease terms.

Key Highlights

• 1,714‑square‑foot carryout restaurant with drive‑through capacity
• Indoor and outdoor seating areas
• Two parcels totaling approximately 0.7 acres

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

$23,941

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

7.37%

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%

$478,820 $478.8K

Cap Rate 7%

$342,014 $342.0K

Cap Rate 9%

$266,011 $266.0K

Market Conditions

NOI Build-Up for 1,714 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

$32.9K $19.20/SF

− Vacancy

−$987 −$0.58/SF

EGI

$31.9K $18.62/SF

− OpEx

−$8.0K −$4.66/SF

NOI

$23.9K $13.97/SF

Area

Madison County, AL

Vacancy

3.00%

Lease Rate

$19.20 /SF/Yr

Expense Ratio

25.00%

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%

$478,820

Cap Rate 7%

$342,014

Cap Rate 9%

$266,011

Alternative Uses

Best Use

Specialty Retail

$342.0K

$299.3K – $399.0K (±1% cap)

NOI $23,941 @ 7.0% cap · market cap 7.37%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$446.3K

$390.5K – $520.7K (±1% cap)

NOI $31,243 @ 7.0% cap · market cap 9.61%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Drive through restaurants

Location Intelligence

Trade Area within ½ mile

184

Businesses Nearby

24k

Monthly Visits Nearby

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 55% Dining 45%

SONIC Drive In Dining

10,861 visits/mo 0.2 miles

Chevron Shops & Services

9,243 visits/mo 0.3 miles

O'Reilly Auto Parts Shops & Services

2,119 visits/mo 0.3 miles

Advance Auto Parts Shops & Services

2,063 visits/mo 0.5 miles

Demographics for 35750, AL

14,192

Population

5,698

Households

2.5

Avg Household Size

40

Median Age

29%

College-Educated

87%

High-School Grad

61.1 sq mi

ZIP Area

232

Density / Sq Mi

$78,622

Median Household Income

$44,575

Median Earnings

$1,079

Median Rent

$186,200

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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What type of property is this? Where is this drive through restaurants located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Drive through restaurant - Carryout restaurant with indoor and outdoor seating under an NNN lease.

Where is this drive through restaurant located?

The property is located at 14054-56 Highway 231/431 Hazel Green, AL.

What is the asking price?

The asking price for this property is $325,000.

What are key features of this property?

This property features: 1,714‑square‑foot carryout restaurant with drive‑through capacity; Indoor and outdoor seating areas; Two parcels totaling approximately 0.7 acres