Restaurant Building with Commercial
For Sale
$529,000
2484 Redmond Road, Dothan, AL 36303
Two-level restaurant building with commercial kitchen equipment, walk-in cooler, and multiple restrooms, sold as-is.
Property Size7,202 SF
Price / SF$73.45
Days on Market938
Property Features for 2484 Redmond Road
General Information
Standard status
Active
Size
7,202 SF
Property subtype
General Commercial
Additional Details
Outdoor Storage
Yes
Amenities
3
Waterfront.
28 Parking Spaces.
Building Details
Year Built
1995
Listing Agency:
Lan Darty Real Estate & Development
(334) 699-2300
Listed By:
Joann Whiddon · License #000018170
(334) 699-2300
Source:
Xome
Added: Feb 5, 2024
Changed: Aug 12
Last Checked: Aug 30 at 1:13PM
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 Lan Darty Real Estate & Development
Investment Insights
Based on property information with market context.
This two-level restaurant building includes a bottom floor with seven large rooms, featuring a kitchen with some commercial equipment, a walk-in cooler, and a private bathroom. The main level also provides two public bathrooms. Upstairs offers one large room that could be rented separately. The property includes five total HVAC units.
Outside storage is available with one large freezer and one large refrigerator unit. The kitchen unit is approximately five years old. The building is being sold as-is, and the seller will consider a lease; call the agent for details.
The layout supports operation and separation of space between the main level and the upstairs room, with restroom access on the main floor and dedicated interior amenities included on the lower level.
Outside storage is available with one large freezer and one large refrigerator unit. The kitchen unit is approximately five years old. The building is being sold as-is, and the seller will consider a lease; call the agent for details.
The layout supports operation and separation of space between the main level and the upstairs room, with restroom access on the main floor and dedicated interior amenities included on the lower level.
Key Highlights
- Two‑level restaurant building with 7,202 SF in Dothan, AL
- Bottom floor has 7 large rooms including kitchen with commercial equipment, walk‑in cooler, and a private bathroom
- Main floor includes two public bathrooms; 3 guest facilities noted
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
$28,282
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
5.35%
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%
$565,640
$565.6K
Cap Rate 7%
$404,029
$404.0K
Cap Rate 9%
$314,244
$314.2K
Market Conditions
NOI Build-Up for 7,202 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
$43.2K $6.00/SF
− Vacancy
−$2.8K −$0.39/SF
EGI
$40.4K $5.61/SF
− OpEx
−$12.1K −$1.68/SF
NOI
$28.3K $3.93/SF
Area
Houston County, AL
Vacancy
6.50%
Lease Rate
$6.00 /SF/Yr
Expense Ratio
30.00%
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%
$565,640
Cap Rate 7%
$404,029
Cap Rate 9%
$314,244
Alternative Uses
Best Use
Specialty Retail
$1.08M
$941.9K – $1.26M
NOI $75,351 @ 7.0% cap · market cap 14.24%
Second Best
Industrial
$404.0K
$353.5K – $471.4K
NOI $28,282 @ 7.0% cap · market cap 5.35%
Theoretical Best
Healthcare Medical
$1.27M
$1.11M – $1.49M
NOI $89,107 @ 7.0% cap · market cap 16.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
607
Businesses Nearby
323k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 59%
Apparel 25%
Groceries 7%
Shops & Services 3%
Academy Sports + Outdoors
Apparel
78,053 visits/mo
0.2 miles
Texas Roadhouse
Dining
38,084 visits/mo
0.1 miles
Jim 'N Nick's Bar-B-Q
Dining
27,979 visits/mo
0.4 miles
Starbucks
Dining
23,252 visits/mo
0.5 miles
Winn-Dixie
Groceries
23,067 visits/mo
0.1 miles
Demographics for 36303, AL
31,080
Population
14,622
Households
2.1
Avg Household Size
39
Median Age
28%
College-Educated
88%
High-School Grad
58.9 sq mi
ZIP Area
528
Density / Sq Mi
$53,006
Median Household Income
$34,504
Median Earnings
$855
Median Rent
$175,600
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?
Commercial kitchen - Two-level restaurant building with commercial kitchen equipment, walk-in cooler, and multiple restrooms, sold as-is.
Where is this commercial kitchen located?
The property is located at 2484 Redmond Road Dothan, AL.
What is the asking price?
The asking price for this property is $529,000.
What are key features of this property?
This property features: Two‑level restaurant building with 7,202 SF in Dothan, AL; Bottom floor has 7 large rooms including kitchen with commercial equipment, walk‑in cooler, and a private bathroom; Main floor includes two public bathrooms; 3 guest facilities noted
