Restaurant Property with Commercial
For Sale
$3,100,000
1010 Heathland Drive, Huntsville, AL 35816
The layout includes two large offices, storage areas, parking, and a walk-in freezer.
Property Size6,500 SF
Price / SF$476.92
Days on Market52
Property Features for 1010 Heathland Drive
General Information
Standard status
Active
Size
6,500 SF
Property subtype
Business Opportunity
Building Details
Buildings
1
Listing Agency:
South Towne Realtors, LLC
(256) 630-1918
Listed By:
Laran Adkins · License #128358
(256) 630-1918
Source:
Laranadkins.idxbroker
Added: Jul 10
Changed: Aug 30
Last Checked: Aug 30 at 1:06PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of South Towne Realtors, LLC
Investment Insights
Based on property information with market context.
This 6,500-square-foot restaurant property includes a full commercial kitchen supported by a walk-in freezer. The interior also provides two large offices, storage areas, and substantial on-site parking. The configuration is suited to restaurant operations and can also accommodate event space, lounge, or bar uses.
The property is positioned one block from Mid City Huntsville at 1010 Heathland Drive in Huntsville, Alabama. Its existing kitchen infrastructure, office component, storage, and parking create a functional commercial setup for a food-service or hospitality operation.
The property is positioned one block from Mid City Huntsville at 1010 Heathland Drive in Huntsville, Alabama. Its existing kitchen infrastructure, office component, storage, and parking create a functional commercial setup for a food-service or hospitality operation.
Key Highlights
- 6,500 SQ FT restaurant property
- Full commercial kitchen with walk‑in freezer
- Two large office spaces
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
$90,792
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
2.93%
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%
$1,815,840
$1.8M
Cap Rate 7%
$1,297,029
$1.3M
Cap Rate 9%
$1,008,800
$1.0M
Market Conditions
NOI Build-Up for 6,500 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
$124.8K $19.20/SF
− Vacancy
−$3.7K −$0.58/SF
EGI
$121.1K $18.62/SF
− OpEx
−$30.3K −$4.66/SF
NOI
$90.8K $13.97/SF
Area
Huntsville, 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%
$1,815,840
Cap Rate 7%
$1,297,029
Cap Rate 9%
$1,008,800
Alternative Uses
Best Use
Specialty Retail
$1.30M
$1.13M – $1.51M
NOI $90,792 @ 7.0% cap · market cap 2.93%
Second Best
Industrial
$586.9K
$513.6K – $684.8K
NOI $41,085 @ 7.0% cap · market cap 1.33%
Theoretical Best
Office A
$1.69M
$1.48M – $1.97M
NOI $118,482 @ 7.0% cap · market cap 3.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
883
Businesses Nearby
557k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 30%
Superstores 18%
Shops & Services 13%
Electronics 11%
Sam's Club
Superstores
102,437 visits/mo
0.3 miles
Best Buy
Electronics
54,889 visits/mo
0.2 miles
Trader Joe's
Groceries
47,897 visits/mo
0.2 miles
HomeGoods
Home Improvements & Furnishings
28,353 visits/mo
0.2 miles
Sam's Club Gas Station
Shops & Services
28,182 visits/mo
0.2 miles
Demographics for 35816, AL
15,035
Population
7,972
Households
1.9
Avg Household Size
28
Median Age
27%
College-Educated
88%
High-School Grad
5.1 sq mi
ZIP Area
2,948
Density / Sq Mi
$38,947
Median Household Income
$28,060
Median Earnings
$875
Median Rent
$114,100
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 - The layout includes two large offices, storage areas, parking, and a walk-in freezer.
Where is this conventional restaurant located?
The property is located at 1010 Heathland Drive Huntsville, AL.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: 6,500 SQ FT restaurant property; Full commercial kitchen with walk‑in freezer; Two large office spaces
