Two-Building Office
For Sale
$649,000
225 W Laurel Avenue, Foley, AL 36535
Commercial Sale, Foley, AL
Property Size3,700 SF
Lot Size0.24 Acres
Price / SF$175.41
Days on Market123
Property Features for 225 W Laurel Avenue
General Information
Property type
Residential
Property subtype
Office
Zoning
Commercial
Directions
From Alabama State Route 59 (S McKenzie St), head west onto W Laurel Ave (at the light near downtown Foley). Continue approximately 0.2-0.3 miles into the downtown area. Property will be on the right at 225 W Laurel Ave, just west of the intersection with N Alston St and near Heritage Park.
Subdivision
Baldwin
Standard status
Active
APN
54-09-29-4-401-044.000
Lot size
0.24 Acres
Taxes and HOA fees
Tax Description
75 X 140 LOT 6 & THE W1 2 OF LOT 7 FOLEY BLK 15
Tax Annual Amount
1105
Legal Description
75 X 140 LOT 6 & THE W1 2 OF LOT 7 FOLEY BLK 15
Building Details
Year built
1947
Floors in Building
1
Flooring type
Concrete, Tile
Roof type
Composition, Metal
Listing Agency:
Waters Edge Realty
(251) 215-1783
Listed By:
April H Hunt · License #112454-1
(318) 773-8606
Added: May 5
Changed: Aug 19
Last Checked: Sep 4 at 1:06PM
MLS# 396099
Copyright © 2026 Baldwin 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.
This office property includes two separate buildings at 225 W Laurel Avenue. The 1,900-square-foot front building dates to 1947 and is currently used as a coin shop, while the 1,800-square-foot rear structure was added in 2024. The additional building can support storage, workshop functions, expansion, or a separate business operation, subject to buyer verification.
Water access is stubbed into every room, creating a practical foundation for reconfiguration. Existing finishes include concrete and tile flooring, with composition and metal roofing identified across the property. The site is located in Foley’s Historic Downtown District and within the Historic Overlay District, providing an established downtown setting for continued commercial use or a new office-oriented concept.
Water access is stubbed into every room, creating a practical foundation for reconfiguration. Existing finishes include concrete and tile flooring, with composition and metal roofing identified across the property. The site is located in Foley’s Historic Downtown District and within the Historic Overlay District, providing an established downtown setting for continued commercial use or a new office-oriented concept.
Key Highlights
- Two‑building configuration with 3,700 square feet of combined building area
- 1,900‑square‑foot front building constructed in 1947
- 1,800‑square‑foot rear structure added in 2024
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
$43,157
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
6.65%
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%
$863,140
$863.1K
Cap Rate 7%
$616,529
$616.5K
Cap Rate 9%
$479,522
$479.5K
Market Conditions
NOI Build-Up for 3,700 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
$71.0K $19.20/SF
− Vacancy
−$13.5K −$3.65/SF
EGI
$57.5K $15.55/SF
− OpEx
−$14.4K −$3.89/SF
NOI
$43.2K $11.66/SF
Area
Baldwin County, AL
Vacancy
19.00%
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%
$863,140
Cap Rate 7%
$616,529
Cap Rate 9%
$479,522
Alternative Uses
Best Use
Office B
$616.5K
$539.5K – $719.3K
NOI $43,157 @ 7.0% cap · market cap 6.65%
Second Best
Retail
$568.8K
$497.7K – $663.6K
NOI $39,813 @ 7.0% cap · market cap 6.13%
Theoretical Best
Office A
$889.8K
$778.6K – $1.04M
NOI $62,284 @ 7.0% cap · market cap 9.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
955
Businesses Nearby
Explore this area
Business Placement
Demographics for 36535, AL
35,484
Population
18,755
Households
1.9
Avg Household Size
46
Median Age
26%
College-Educated
90%
High-School Grad
92.5 sq mi
ZIP Area
384
Density / Sq Mi
$67,013
Median Household Income
$41,574
Median Earnings
$1,168
Median Rent
$250,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Flexible commercial layout with a separate rear structure and water access stubbed into every room.
Where is this office units located?
The property is located at 225 W Laurel Avenue Foley, AL.
What is the asking price?
The asking price for this property is $649,000.
What are key features of this property?
This property features: Two‑building configuration with 3,700 square feet of combined building area; 1,900‑square‑foot front building constructed in 1947; 1,800‑square‑foot rear structure added in 2024
