Commercial Kitchen
For Sale
$529,000
2484 Redmond Road, Dothan, AL 36303
Commercial Sale, Dothan, AL
Property Size7,202 SF
Price / SF$73.45
Days on Market846
Property Features for 2484 Redmond Road
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
8 NW-Outside Circle
Standard status
Active
APN
0902033001015002
Building Details
Year built
1995
Floors in Building
2
Listing Agency:
Lan Darty Real Estate & Development
(334) 699-2300
Listed By:
Joann Whiddon · License #000018170
(334) 791-3010
Added: May 22, 2024
Changed: Sep 3
Last Checked: Sep 14 at 1:06PM
MLS# 197553
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.
This commercial kitchen facility offers over 7,202 square feet arranged for a range of food-service and related operations. The main level includes seven large rooms, a kitchen with some commercial equipment, a walk-in cooler, a private bathroom, and two public bathrooms. The upper floor contains one large room with separate rental potential. Five total heating and cooling units serve the building, and the kitchen unit is approximately five years old.
Exterior storage adds a large freezer and a large refrigerator unit. Constructed in 1995, the property is being offered in its existing condition. Its combination of production space, support rooms, refrigeration, and multiple restrooms provides a substantial commercial kitchen layout within a single building.
Exterior storage adds a large freezer and a large refrigerator unit. Constructed in 1995, the property is being offered in its existing condition. Its combination of production space, support rooms, refrigeration, and multiple restrooms provides a substantial commercial kitchen layout within a single building.
Key Highlights
- Over 7202 square feet of commercial space
- Main floor includes 7 large rooms and a kitchen
- Walk‑in cooler and some commercial kitchen equipment included
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
$28,282
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
5.35%
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%
$565,640
$565.6K
Cap Rate 7%
$404,029
$404.0K
Cap Rate 9%
$314,244
$314.2K
Market Conditions
NOI Build-Up for 7,202 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
$43.2K $6.00/SF
− Vacancy
−$2.8K −$0.39/SF
EGI
$40.4K $5.61/SF
− OpEx
−$12.1K −$1.68/SF
NOI
$28.3K $3.93/SF
Area
Houston County, AL
Vacancy
6.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
30.00%
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%
$565,640
Cap Rate 7%
$404,029
Cap Rate 9%
$314,244
Alternative Uses
Best Use
Specialty Retail
$1.08M
$941.9K – $1.26M
NOI $75,351 @ 7.0% cap · market cap 14.24%
Second Best
Industrial
$404.0K
$353.5K – $471.4K
NOI $28,282 @ 7.0% cap · market cap 5.35%
Theoretical Best
Healthcare Medical
$1.27M
$1.11M – $1.49M
NOI $89,107 @ 7.0% cap · market cap 16.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
607
Businesses Nearby
323k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 59%
Apparel 25%
Groceries 7%
Shops & Services 3%
Academy Sports + Outdoors
Apparel
78,053 visits/mo
0.2 miles
Texas Roadhouse
Dining
38,084 visits/mo
0.1 miles
Jim 'N Nick's Bar-B-Q
Dining
27,979 visits/mo
0.4 miles
Starbucks
Dining
23,252 visits/mo
0.5 miles
Winn-Dixie
Groceries
23,067 visits/mo
0.1 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
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Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Commercial kitchen - Multi-room facility with commercial kitchen equipment, cold storage, restrooms, and an additional upper-level room.
Where is this commercial kitchen located?
The property is located at 2484 Redmond Road Dothan, AL.
What is the asking price?
The asking price for this property is $529,000.
What are key features of this property?
This property features: Over 7202 square feet of commercial space; Main floor includes 7 large rooms and a kitchen; Walk‑in cooler and some commercial kitchen equipment included
