Restaurant Property with Commercial
For Sale
$185,000
5304 20TH Avenue, Valley, AL 36854
COMMERCIAL - VALLEY, AL
Property Size1,518 SF
Lot Size0.27 Acres
Price / SF$121.87
Days on Market65
Property Features for 5304 20TH Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
From I-85, take Exit 77 toward Valley/Hugley. Take slight right on Fob James Dr. towards 20th Ave. In 2.5 miles, turn left onto 20th Ave. In .3 miles, 5304 20th Ave will be on your right.
Subdivision
Outside Lee Co
Standard status
Active
Size
1,518 SF
Lot size
0.27 Acres
Amenities
screened in porch
Building Details
Year built
1700
Listing Agency:
FIRST REALTY
(334) 887-3425
Listed By:
KELLY METIVIER
(334) 887-3425
Added: Jun 16
Changed: Aug 4
Last Checked: Aug 19 at 2:06AM
MLS# 181017
Copyright © 2026 Lee County 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 property is a formally residential building converted to a restaurant, with an established dining area and a fully equipped commercial kitchen. The interior layout is designed to support day-to-day foodservice operations, and it includes generous storage space to help keep service organized. A screened-in porch adds an outdoor experience area that can complement the main dining space.
The property sits on a 0.27-acre lot and totals 1,518 square feet. It is located at 5304 20th Avenue in Valley, Alabama, within Chambers County.
The existing kitchen and dining configuration can support a range of food and beverage concepts, including a restaurant, cafe, bakery, catering operation, specialty food market, or an event-focused hospitality use. If you are looking for a turn-key foundation for a new concept, this building already includes core commercial components, including the commercial kitchen, dining area, storage, and a covered, screened outdoor space for guest use. The property’s restaurant history and flexible layout may appeal to entrepreneurs and operators who want to build on an established food-service setting while creating a new chapter.
The property sits on a 0.27-acre lot and totals 1,518 square feet. It is located at 5304 20th Avenue in Valley, Alabama, within Chambers County.
The existing kitchen and dining configuration can support a range of food and beverage concepts, including a restaurant, cafe, bakery, catering operation, specialty food market, or an event-focused hospitality use. If you are looking for a turn-key foundation for a new concept, this building already includes core commercial components, including the commercial kitchen, dining area, storage, and a covered, screened outdoor space for guest use. The property’s restaurant history and flexible layout may appeal to entrepreneurs and operators who want to build on an established food-service setting while creating a new chapter.
Key Highlights
- Year built: 1700
- Previously operated as a Cajun restaurant with an established dining area
- Fully equipped commercial kitchen already in place
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
$16,753
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
9.06%
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%
$335,060
$335.1K
Cap Rate 7%
$239,329
$239.3K
Cap Rate 9%
$186,144
$186.1K
Market Conditions
NOI Build-Up for 1,518 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
$24.2K $15.96/SF
− Vacancy
−$1.9K −$1.24/SF
EGI
$22.3K $14.72/SF
− OpEx
−$5.6K −$3.68/SF
NOI
$16.8K $11.04/SF
Area
Lee County, AL
Vacancy
7.80%
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%
$335,060
Cap Rate 7%
$239,329
Cap Rate 9%
$186,144
Alternative Uses
Best Use
Specialty Retail
$239.3K
$209.4K – $279.2K
NOI $16,753 @ 7.0% cap · market cap 9.06%
Second Best
Industrial
$100.0K
$87.5K – $116.7K
NOI $7,000 @ 7.0% cap · market cap 3.78%
Theoretical Best
Office A
$370.2K
$324.0K – $431.9K
NOI $25,916 @ 7.0% cap · market cap 14.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
14
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36854, AL
16,399
Population
7,761
Households
2.1
Avg Household Size
41
Median Age
19%
College-Educated
88%
High-School Grad
60.5 sq mi
ZIP Area
271
Density / Sq Mi
$60,385
Median Household Income
$37,589
Median Earnings
$1,021
Median Rent
$146,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - For sale restaurant property with fully equipped commercial kitchen, dining area, screened porch, and storage for new concepts.
Where is this conventional restaurant located?
The property is located at 5304 20TH Avenue Valley, AL.
What is the asking price?
The asking price for this property is $185,000.
What are key features of this property?
This property features: Year built: 1700; Previously operated as a Cajun restaurant with an established dining area; Fully equipped commercial kitchen already in place
