Restaurant With Event
For Sale
$925,000
307 N Montgomery Ave, Sheffield, AL 35660
Commercial Sale, Sheffield, AL
Property Size6,000 SF
Price / SF$154.17
Days on Market1763
Property Features for 307 N Montgomery Ave
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B1
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bathroom 2
Parking features
On Street
Patio and Porch features
Porch
Interior features
Built-in Features, Ceiling-High, Counters - Solid Surface, Entrance Foyer, Handicap Features, Inside Storage, Recessed Lighting, Track Lighting, Utility Sink
Accessibility
Accessible Approach with Ramp
Subdivision
Sheffield
Lot features
City Lot
View
City
Elementary school
City
Middle school
City
High school
City
Directions
2ND STREET TO DOWN TOWN SHEFFIELD. RED CLAY AND LOGAN ROOM ON THE LEFT. SIGN
Standard status
Active
APN
0708283010040000
Size
6,000 SF
Taxes and HOA fees
Tax Description
Lots 21 & 22 Blk 62 Sheffield 50x120
Legal Description
Lots 21 & 22 Blk 62 Sheffield 50x120
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1952
Flooring type
Concrete
Building materials
Block, Brick, Other (ConstrMat)
Roof type
Metal
Additional Structures
Storage
Listing Agency:
RE/MAX Tri-State · RE/MAX International
(256) 383-7787
Listed By:
Beth Pirtle · License #000101566
(256) 810-4786
Added: Nov 3, 2021
Changed: Aug 19
Last Checked: Aug 31 at 6:06AM
MLS# 502218
Copyright © 2026 Strategic MLS Alliance, 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 6000-square-foot conventional restaurant occupies a 1952 building in downtown Sheffield. The property includes a dedicated event room known as The Logan Room, along with built-in features, solid-surface counters, storage areas, a utility sink, two bathrooms, and a combination of recessed and track lighting. Fixtures and equipment remain with the purchase, supporting continued restaurant use without removing the existing setup.
Block and brick construction, concrete flooring, central heating, central air, and a metal roof are among the building’s physical features. The property also has a porch, on-street parking, and an accessible approach with ramp. Public water and public sewer serve the site. Located at 307 N Montgomery Ave in Sheffield, Alabama, the property is zoned B1.
Block and brick construction, concrete flooring, central heating, central air, and a metal roof are among the building’s physical features. The property also has a porch, on-street parking, and an accessible approach with ramp. Public water and public sewer serve the site. Located at 307 N Montgomery Ave in Sheffield, Alabama, the property is zoned B1.
Key Highlights
- 6000 square feet of restaurant space in a 1952 building
- The Logan Room provides a dedicated event area
- Fixtures and equipment remain with the purchase
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
$43,146
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
4.66%
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%
$862,920
$862.9K
Cap Rate 7%
$616,371
$616.4K
Cap Rate 9%
$479,400
$479.4K
Market Conditions
NOI Build-Up for 6,000 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
$61.2K $10.20/SF
− Vacancy
−$3.7K −$0.61/SF
EGI
$57.5K $9.59/SF
− OpEx
−$14.4K −$2.40/SF
NOI
$43.1K $7.19/SF
Area
Colbert County, AL
Vacancy
6.00%
Lease Rate
$10.20 /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%
$862,920
Cap Rate 7%
$616,371
Cap Rate 9%
$479,400
Alternative Uses
Best Use
Specialty Retail
$616.4K
$539.3K – $719.1K
NOI $43,146 @ 7.0% cap · market cap 4.66%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$958.1K
$838.4K – $1.12M
NOI $67,069 @ 7.0% cap · market cap 7.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
334
Businesses Nearby
7k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar General
Shops & Services
7,491 visits/mo
0.3 miles
Demographics for 35660, AL
9,434
Population
5,139
Households
1.8
Avg Household Size
40
Median Age
16%
College-Educated
88%
High-School Grad
6.2 sq mi
ZIP Area
1,522
Density / Sq Mi
$42,510
Median Household Income
$31,302
Median Earnings
$850
Median Rent
$129,000
Median Home Value
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 - Downtown Sheffield restaurant with installed fixtures, equipment, public utilities, and an accessible ramped entrance.
Where is this conventional restaurant located?
The property is located at 307 N Montgomery Ave Sheffield, AL.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: 6000 square feet of restaurant space in a 1952 building; The Logan Room provides a dedicated event area; Fixtures and equipment remain with the purchase
