Building Details

Year built 2007

Floors in Building 1

Flooring type Concrete

Roof type Metal

Additional Structures Storage

Listing Agency: Bhhs Southern Routes Realty Show Phone

Listed By: Amy Crocker Mullins · License #96723 Show Phone

Added: May 20 Changed: Sep 7 Last Checked: Sep 14 at 3:06AM

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MLS# 21867452

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Investment Insights

Based on property information with market context.

Operating automotive service garage on 1.2 acres with 250 feet of frontage along US Highway 11. The 2,400-square-foot building includes three service bays, a 16-by-22-foot office, and concrete flooring. Additional covered storage includes a 12-by-60-foot lean-to and a gated 18-by-20-foot rear lean-to.

Included equipment consists of a four-post Rotary lift, two two-post Rotary lifts, a Hunter brake lathe, Hunter tire changer, Coats wheel balancer, Porta Cool fan, Energy Logic waste-oil heater, and box trailer. The property also includes a parking lot, metal roof, public water, and septic service. Constructed in 2007, the facility is positioned at 38023 US Highway 11 in Valley Head, Alabama.

Key Highlights

• 1.2‑acre automotive service property with 250 feet of frontage on US Highway 11
• 2,400‑square‑foot shop building with 3 service bays
• 16x22 office area plus 12x60 and 18x20 covered storage areas

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

$20,106

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

8.04%

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%

$402,120 $402.1K

Cap Rate 7%

$287,229 $287.2K

Cap Rate 9%

$223,400 $223.4K

Market Conditions

NOI Build-Up for 2,400 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

$33.7K $14.04/SF

− Vacancy

−$2.8K −$1.15/SF

EGI

$30.9K $12.89/SF

− OpEx

−$10.8K −$4.51/SF

NOI

$20.1K $8.38/SF

Area

DeKalb County, AL

Vacancy

8.20%

Lease Rate

$14.04 /SF/Yr

Expense Ratio

35.00%

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%

$402,120

Cap Rate 7%

$287,229

Cap Rate 9%

$223,400

Alternative Uses

Best Use

Flex RnD

$287.2K

$251.3K – $335.1K (±1% cap)

NOI $20,106 @ 7.0% cap · market cap 8.04%

Second Best

Retail

$207.4K

$181.4K – $241.9K (±1% cap)

NOI $14,515 @ 7.0% cap · market cap 5.81%

Theoretical Best

Healthcare Medical

$386.6K

$338.3K – $451.1K (±1% cap)

NOI $27,065 @ 7.0% cap · market cap 10.83%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Auto shops

Suggested Use

Top Pick Auto Repair Shop Electrical Service Plumbing Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

3

Service bays

Turnkey business

Opportunity

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

16

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 35989, AL

3,265

Population

1,559

Households

2.1

Avg Household Size

43

Median Age

12%

College-Educated

75%

High-School Grad

57.2 sq mi

ZIP Area

57

Density / Sq Mi

$43,750

Median Household Income

$31,096

Median Earnings

$730

Median Rent

$89,500

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

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What type of property is this? Where is this auto shops located? What is the asking price? Find similar properties What are key features of this property?

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Similar Off Market Nearby

• Scotty's 2 Service Center — 38013 US-11, Valley Head, AL 35989

Frequently Asked Questions

What type of property is this?

Auto shop - Operating automotive facility with dedicated shop, office, storage areas, and included service equipment.

Where is this auto shop located?

The property is located at 38023 US Highway 11 Valley Head, AL.

What is the asking price?

The asking price for this property is $250,000.

What are key features of this property?

This property features: 1.2‑acre automotive service property with 250 feet of frontage on US Highway 11; 2,400‑square‑foot shop building with 3 service bays; 16x22 office area plus 12x60 and 18x20 covered storage areas