Restaurant Building with
For Sale
$2,598,000
1708 Westgate Parkway, Dothan, AL 36303
Commercial Sale, Dothan, AL
Property Size7,875 SF
Lot Size2.43 Acres
Price / SF$329.90
Days on Market362
Property Features for 1708 Westgate Parkway
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Rock Creek Sub Rep of Lot 1 BL
Standard status
Active
APN
0902033001022002
Lot size
2.43 Acres
Amenities
RV hookup
wrap-around porches
Building Details
Year built
2020
Floors in Building
1
Listing Agency:
The Real Estate Group
(334) 797-7373
Listed By:
Donnie Wells · License #92269
(334) 618-3239
Added: Sep 17, 2025
Changed: Sep 2
Last Checked: Sep 13 at 11:06PM
MLS# 205228
Copyright © 2026 Southeast Alabama Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Built in 2020, this 7,875-square-foot former restaurant occupies 2.43 acres along Westgate Parkway in Dothan. The building includes a drive-through window, dining area, bar, full kitchen, multiple storage rooms, wrap-around porches, and existing kitchen equipment. Tables, chairs, booths, and benches are also included. Exterior signage and an RV hookup add to the property's existing improvements.
The site is positioned directly across from Wiregrass Commons Mall and includes scenic pond views. On-site parking totals 124 spaces. Commercial zoning supports the property's current restaurant configuration, while the existing layout and improvements provide a foundation for continued restaurant use or other business applications supported by the site.
The site is positioned directly across from Wiregrass Commons Mall and includes scenic pond views. On-site parking totals 124 spaces. Commercial zoning supports the property's current restaurant configuration, while the existing layout and improvements provide a foundation for continued restaurant use or other business applications supported by the site.
Key Highlights
- 7,875‑square‑foot building on 2.43 acres
- Drive‑through window with full kitchen, dining area, bar, and storage rooms
- 124 parking spaces with exterior signage
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
$82,392
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
3.17%
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%
$1,647,840
$1.6M
Cap Rate 7%
$1,177,029
$1.2M
Cap Rate 9%
$915,467
$915.5K
Market Conditions
NOI Build-Up for 7,875 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
$118.1K $15.00/SF
− Vacancy
−$8.3K −$1.05/SF
EGI
$109.9K $13.95/SF
− OpEx
−$27.5K −$3.49/SF
NOI
$82.4K $10.46/SF
Area
Houston County, AL
Vacancy
7.00%
Lease Rate
$15.00 /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%
$1,647,840
Cap Rate 7%
$1,177,029
Cap Rate 9%
$915,467
Alternative Uses
Best Use
Specialty Retail
$1.18M
$1.03M – $1.37M
NOI $82,392 @ 7.0% cap · market cap 3.17%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$1.39M
$1.22M – $1.62M
NOI $97,433 @ 7.0% cap · market cap 3.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
633
Businesses Nearby
431k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 52%
Apparel 30%
Shops & Services 6%
Groceries 5%
Academy Sports + Outdoors
Apparel
78,053 visits/mo
0.5 miles
Texas Roadhouse
Dining
38,084 visits/mo
0.3 miles
Belk
Apparel
29,511 visits/mo
0.3 miles
Jim 'N Nick's Bar-B-Q
Dining
27,979 visits/mo
0.2 miles
Chili's Grill & Bar
Dining
24,932 visits/mo
0.5 miles
Demographics for 36303, AL
31,080
Population
14,622
Households
2.1
Avg Household Size
39
Median Age
28%
College-Educated
88%
High-School Grad
58.9 sq mi
ZIP Area
528
Density / Sq Mi
$53,006
Median Household Income
$34,504
Median Earnings
$855
Median Rent
$175,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Commercially zoned former restaurant with a full kitchen, storage areas, and extensive on-site parking.
Where is this conventional restaurant located?
The property is located at 1708 Westgate Parkway Dothan, AL.
What is the asking price?
The asking price for this property is $2,598,000.
What are key features of this property?
This property features: 7,875‑square‑foot building on 2.43 acres; Drive‑through window with full kitchen, dining area, bar, and storage rooms; 124 parking spaces with exterior signage
