Restaurant With Live-Work
For Sale
$875,000
5601 Winchester Road, New Market, AL 35761
Business Opportunity, New Market, AL
Property Size2,035 SF
Lot Size0.90 Acres
Price / SF$429.98
Days on Market89
Property Features for 5601 Winchester Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business, Commercial
Bathrooms
3
Full bathrooms
3
Rooms
Bathroom 3, Bathroom 1, Bathroom 2
Parking features
Driveway
Directions
Hwy 72 East, Left Onto Moores Mill Rd, Right On Winchester Rd, Straight For Approximately 8miles, Business Is On The Left.
Standard status
Active
APN
0209321000053.000
Size
2,035 SF
Lot size
0.90 Acres
Utilities
Sewer type
Septic Tank
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1996
Flooring type
Concrete
Roof type
Metal
Listing Agency:
Century 21 Rocket City
(256) 469-0421
Listed By:
Shawn Guzman · License #110855
(256) 226-5386
Added: Jun 23
Changed: Sep 17
Last Checked: Sep 19 at 11:06AM
MLS# 21921288
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 restaurant property comprises a 2,035-square-foot commercial building on approximately 0.90 acres, with a separate 1-bedroom, 1-bath living space. The improvements include concrete flooring, a metal roof, central heating and central air. Built in 1996, the property also provides driveway parking and a restaurant-oriented commercial layout.
Located at 5601 Winchester Road in New Market, the site has commercial and residential zoning, allowing the existing business and living components to occupy the same property. Public water and a septic tank serve the site. The combination of restaurant improvements, a separate residence, and on-site parking creates a defined live-work configuration.
Located at 5601 Winchester Road in New Market, the site has commercial and residential zoning, allowing the existing business and living components to occupy the same property. Public water and a septic tank serve the site. The combination of restaurant improvements, a separate residence, and on-site parking creates a defined live-work configuration.
Key Highlights
- 2,035‑square‑foot commercial building on approximately 0.90 acres
- Separate 1‑bedroom, 1‑bath living space
- Commercial and residential zoning
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
$28,425
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
3.25%
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%
$568,500
$568.5K
Cap Rate 7%
$406,071
$406.1K
Cap Rate 9%
$315,833
$315.8K
Market Conditions
NOI Build-Up for 2,035 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
$39.1K $19.20/SF
− Vacancy
−$1.2K −$0.58/SF
EGI
$37.9K $18.62/SF
− OpEx
−$9.5K −$4.66/SF
NOI
$28.4K $13.97/SF
Area
Madison County, AL
Vacancy
3.00%
Lease Rate
$19.20 /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%
$568,500
Cap Rate 7%
$406,071
Cap Rate 9%
$315,833
Alternative Uses
Best Use
Specialty Retail
$406.1K
$355.3K – $473.8K
NOI $28,425 @ 7.0% cap · market cap 3.25%
Second Best
Office B
$371.4K
$325.0K – $433.3K
NOI $25,998 @ 7.0% cap · market cap 2.97%
Theoretical Best
Office A
$529.9K
$463.7K – $618.2K
NOI $37,094 @ 7.0% cap · market cap 4.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
55
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35761, AL
12,561
Population
5,522
Households
2.3
Avg Household Size
40
Median Age
30%
College-Educated
90%
High-School Grad
116.6 sq mi
ZIP Area
108
Density / Sq Mi
$82,321
Median Household Income
$45,892
Median Earnings
$975
Median Rent
$215,300
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Commercial and residential zoning accompany a restaurant building and separate living space on Winchester Road.
Where is this conventional restaurant located?
The property is located at 5601 Winchester Road New Market, AL.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 2,035‑square‑foot commercial building on approximately 0.90 acres; Separate 1‑bedroom, 1‑bath living space; Commercial and residential zoning
