Building Details

Year built 1945

Floors in Building 1

Flooring type Concrete

Listing Agency: Bhhs Rise Real Estate Show Phone

Listed By: Anne Adams · License #40164 Show Phone

Added: Jun 30 Changed: Sep 16 Last Checked: Sep 27 at 9:06AM

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MLS# 1819528

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Investment Insights

Based on property information with market context.

This grocery and convenience store property includes a 1,200-square-foot building on a 1.97-acre parcel. The structure dates to 1945 and has concrete flooring along with two bathrooms.

The property is located on Highway 431 S in New Hope, Alabama, approximately one mile from the Marshall County line. Public water serves the site, with wastewater handled by a septic tank.

Key Highlights

• 1,200‑square‑foot grocery and convenience store property
• 1.97‑acre parcel on Highway 431 S
• Building constructed in 1945

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

$16,762

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

5.08%

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%

$335,240 $335.2K

Cap Rate 7%

$239,457 $239.5K

Cap Rate 9%

$186,244 $186.2K

Market Conditions

NOI Build-Up for 1,200 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

$23.0K $19.20/SF

− Vacancy

−$691 −$0.58/SF

EGI

$22.3K $18.62/SF

− OpEx

−$5.6K −$4.66/SF

NOI

$16.8K $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%

$335,240

Cap Rate 7%

$239,457

Cap Rate 9%

$186,244

Alternative Uses

Best Use

Specialty Retail

$239.5K

$209.5K – $279.4K (±1% cap)

NOI $16,762 @ 7.0% cap · market cap 5.08%

Second Best

Retail

$209.5K

$183.3K – $244.4K (±1% cap)

NOI $14,666 @ 7.0% cap · market cap 4.44%

Theoretical Best

Office A

$312.5K

$273.4K – $364.6K (±1% cap)

NOI $21,874 @ 7.0% cap · market cap 6.63%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Grocery and convenience stores

Location Intelligence

Trade Area within ½ mile

26

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 35760, AL

5,186

Population

1,935

Households

2.7

Avg Household Size

42

Median Age

28%

College-Educated

90%

High-School Grad

50.7 sq mi

ZIP Area

102

Density / Sq Mi

$66,346

Median Household Income

$50,711

Median Earnings

$790

Median Rent

$164,500

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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What type of property is this? Where is this grocery and convenience stores located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - Compact commercial building with concrete flooring, two bathrooms, public water, and septic service.

Where is this grocery and convenience store located?

The property is located at Highway 431 S New Hope, AL.

What is the asking price?

The asking price for this property is $330,000.

What are key features of this property?

This property features: 1,200‑square‑foot grocery and convenience store property; 1.97‑acre parcel on Highway 431 S; Building constructed in 1945