Restaurant Building with Commercial
For Sale
$3,100,000
1010 Heathland Drive, Huntsville, AL 35816
COMMERCIAL - Huntsville, AL
Property Size6,500 SF
Lot Size1.41 Acres
Price / SF$476.92
Days on Market111
Property Features for 1010 Heathland Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Metes And Bounds
Directions
Go Pass Landers Mcclarty Chevrolet On University Take Right On To Heathland Drive
Standard status
Active
APN
1409322000009000
Size
6,500 SF
Lot size
1.41 Acres
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Floors in Building
1
Flooring type
Carpet, Concrete, Tile
Listing Agency:
Launchpoint Realty LLC
(256) 270-3626
Listed By:
Cleo Smith · License #111047
(256) 270-3626
Added: Apr 23
Changed: Aug 5
Last Checked: Aug 11 at 4:06PM
MLS# 21915980
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Investment Insights
Based on property information with market context.
This restaurant property offers approximately 6,500 square feet of space on a 1.41-acre lot, with interior finishes including carpet, concrete, and tile. The layout includes two large office spaces, plenty of storage, and a full commercial kitchen featuring a walk-in freezer.
The building is positioned 1 block from Mid City Huntsville, supporting flexible use as a restaurant, event space, lounge, or bar. Public utilities are available with public water and public sewer, and the site includes lots of parking for guest and staff access.
The combination of kitchen infrastructure, office space, and storage makes the property well-suited for food and beverage operations that also need back-of-house support and flexible programming space.
The building is positioned 1 block from Mid City Huntsville, supporting flexible use as a restaurant, event space, lounge, or bar. Public utilities are available with public water and public sewer, and the site includes lots of parking for guest and staff access.
The combination of kitchen infrastructure, office space, and storage makes the property well-suited for food and beverage operations that also need back-of-house support and flexible programming space.
Key Highlights
- Approximately 6,500 square feet with two large office spaces
- Full commercial kitchen with walk‑in freezer
- 1.41‑acre lot with lots of parking
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
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant property with a full commercial kitchen and walk-in freezer, plus two large office spaces and ample parking.
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: Approximately 6,500 square feet with two large office spaces; Full commercial kitchen with walk‑in freezer; 1.41‑acre lot with lots of parking
