Remodeled Mixed-Use Building For
For Sale
$1,075,000
309 Montgomery Ave, Sheffield, AL 35660
Large, remodeled mixed-use building with apartments and business potential.
Property Size18,000 SF
Price / SF$59.72
Days on Market1756
Property Features for 309 Montgomery Ave
General Information
Standard status
Active
Size
18,000 SF
Property subtype
General Commercial
Amenities
Central Air
3
Concrete, Wood
Metal
Parking.
On Street.
50x120
In City.
Building Details
Year Built
2014
Listing Agency:
RE/MAX Tri-State
(256) 383-7787
Listed By:
Beth Pirtle · License #000101566
(256) 762-2701
Source:
Xome
Added: Oct 23, 2021
Changed: Aug 8
Last Checked: Aug 8 at 4:40AM
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 RE/MAX Tri-State
Investment Insights
Based on property information with market context.
This mixed-use building, currently operating as a hardware store, is available for sale. The building was completely remodeled in 2014. The upper level features two 2-bedroom, 2-bath apartments and two 1-bedroom, 1-bath apartments, all of which are currently occupied with a waiting list. The main level features hardwood floors. The building offers various business potentials. The property has a size of 18000 square feet.
Key Highlights
- Large building completely remodeled in 2014.
- Upper level includes two 2‑bedroom, 2‑bath apartments and two 1‑bedroom, 1‑bath apartments.
- All apartments are occupied with a waiting list.
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
$95,123
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
8.85%
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%
$1,902,460
$1.9M
Cap Rate 7%
$1,358,900
$1.4M
Cap Rate 9%
$1,056,922
$1.1M
Market Conditions
NOI Build-Up for 18,000 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
$183.6K $10.20/SF
− Vacancy
−$10.6K −$0.59/SF
EGI
$173.0K $9.61/SF
− OpEx
−$77.8K −$4.32/SF
NOI
$95.1K $5.28/SF
Area
Colbert County, AL
Vacancy
5.80%
Lease Rate
$10.20 /SF/Yr
Expense Ratio
45.00%
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%
$1,902,460
Cap Rate 7%
$1,358,900
Cap Rate 9%
$1,056,922
Alternative Uses
Best Use
Mixed Use
$1.70M
$1.49M – $1.98M
NOI $118,800 @ 7.0% cap · market cap 11.05%
Second Best
Retail
$1.60M
$1.40M – $1.87M
NOI $112,319 @ 7.0% cap · market cap 10.45%
Theoretical Best
Office A
$2.87M
$2.52M – $3.35M
NOI $201,208 @ 7.0% cap · market cap 18.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
290
Businesses Nearby
Explore this area
Business Placement
Demographics for 35660, AL
9,434
Population
5,139
Households
1.8
Avg Household Size
40
Median Age
16%
College-Educated
88%
High-School Grad
6.2 sq mi
ZIP Area
1,522
Density / Sq Mi
$42,510
Median Household Income
$31,302
Median Earnings
$850
Median Rent
$129,000
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Mixed-use property - Large, remodeled mixed-use building with apartments and business potential.
Where is this mixed-use property located?
The property is located at 309 Montgomery Ave Sheffield, AL.
What is the asking price?
The asking price for this property is $1,075,000.
What are key features of this property?
This property features: Large building **completely remodeled in 2014**.; Upper level includes two 2‑bedroom, 2‑bath apartments and two 1‑bedroom, 1‑bath apartments.; All apartments are occupied with a waiting list.
