Fully Equipped Conventional
For Sale
$1,349,900
2504 US Highway 31, Decatur, AL 35603
Business Opportunity, Decatur, AL
Property Size5,406 SF
Lot Size1.49 Acres
Price / SF$249.70
Days on Market186
Property Features for 2504 US Highway 31
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Turn Left Onto 2nd Ave Sw/Central Pkwy Sw, Sharp Left Onto Al-67 S, Turn Right Onto Us-31 S, Make A U-Turn
Standard status
Active
APN
0309324002005000
Size
5,406 SF
Lot size
1.49 Acres
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Floors in Building
1
Flooring type
Vinyl, Carpet, Tile
Listing Agency:
A.H. Sothebys Int. Realty
(256) 799-9333
Listed By:
Rola Zuaiter · License #116457
(256) 655-2949
Added: Mar 26
Changed: Sep 12
Last Checked: Sep 27 at 4:06AM
MLS# 21879968
Copyright © 2026 ValleyMLS.Com,Inc. 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 5,406-square-foot conventional restaurant occupies a 1.49-acre property at 2504 US Highway 31 in Decatur, Alabama. The facility is operating as a Mexican restaurant and includes restaurant equipment, fixtures, and furnishings. Vinyl, tile, and carpet flooring are installed throughout the building.
Public water and public sewer serve the property. The existing improvements provide an established restaurant setting for continued operation or a revised concept, subject to applicable requirements.
Public water and public sewer serve the property. The existing improvements provide an established restaurant setting for continued operation or a revised concept, subject to applicable requirements.
Key Highlights
- 5,406‑square‑foot restaurant facility on 1.49 acres
- Operating Mexican restaurant with equipment, fixtures, and furnishings included
- Located at 2504 US Highway 31, Decatur, AL 35603
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
$60,310
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
4.47%
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%
$1,206,200
$1.2M
Cap Rate 7%
$861,571
$861.6K
Cap Rate 9%
$670,111
$670.1K
Market Conditions
NOI Build-Up for 5,406 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
$86.3K $15.96/SF
− Vacancy
−$5.9K −$1.09/SF
EGI
$80.4K $14.87/SF
− OpEx
−$20.1K −$3.72/SF
NOI
$60.3K $11.16/SF
Area
Morgan County, AL
Vacancy
6.80%
Lease Rate
$15.96 /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%
$1,206,200
Cap Rate 7%
$861,571
Cap Rate 9%
$670,111
Alternative Uses
Best Use
Specialty Retail
$861.6K
$753.9K – $1.01M
NOI $60,310 @ 7.0% cap · market cap 4.47%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.12M
$984.1K – $1.31M
NOI $78,729 @ 7.0% cap · market cap 5.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Unlock full access to Insights
Subscribe to Realmo Intelligence
Open Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
385
Businesses Nearby
563k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 27%
Dining 27%
Apparel 21%
Superstores 15%
Target
Superstores
84,108 visits/mo
0.2 miles
T.J. Maxx
Apparel
47,972 visits/mo
0.1 miles
Hobby Lobby
Shops & Services
38,532 visits/mo
0.1 miles
Kroger
Groceries
37,699 visits/mo
0.2 miles
Ross Dress for Less
Apparel
37,119 visits/mo
0.1 miles
Demographics for 35603, AL
32,380
Population
14,509
Households
2.2
Avg Household Size
42
Median Age
29%
College-Educated
91%
High-School Grad
71.0 sq mi
ZIP Area
456
Density / Sq Mi
$78,237
Median Household Income
$47,458
Median Earnings
$857
Median Rent
$235,600
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Operational restaurant facility with furnishings, fixtures, equipment, and public water and sewer service.
Where is this conventional restaurant located?
The property is located at 2504 US Highway 31 Decatur, AL.
What is the asking price?
The asking price for this property is $1,349,900.
What are key features of this property?
This property features: 5,406‑square‑foot restaurant facility on 1.49 acres; Operating Mexican restaurant with equipment, fixtures, and furnishings included; Located at 2504 US Highway 31, Decatur, AL 35603
