Turnkey Restaurant Opportunity on Highway
For Sale
$1,500,000
22272 AL 59, Robertsdale, AL 36567
3,744 SF OPERATING TURN KEY RESTAURANT FOR SALE
Property Size3,744 SF
Lot Size0.41 Acres
Price / SF$400.64
Days on Market570
Property Features for 22272 AL 59
General Information
Standard status
Active
Property type
Restaurants, Other retail properties, Individual retail properties, Retail properties & Spaces
Size
3,744 SF
Total Parking Spaces
25
Elevators
N/A
Lot size
0.41 Acres
Building Details
Year Built
1965
Buildings
1
Stories
2
Listing Agency:
(850) 564-0120
Listed By:
Paul
(850) 564-0120
Added: Feb 7, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This is an exceptional opportunity to acquire a turnkey restaurant in Robertsdale, Alabama. The established eatery, known as the Warehouse Restaurant, has a 4+ star rating across Google and Facebook, based on over 400 reviews, and has operated successfully for five years. The 3,744 square foot, two-story building sits on a 0.41-acre corner lot with frontage on Highway 59 and Carolina Street. The location benefits from 12,288 average daily traffic counts and proximity to I-10 and the Gulf of Mexico. The main floor encompasses 2,000 square feet of dining space seating 72 patrons, along with a fully equipped commercial kitchen featuring three fryers, six freezers, six coolers, a char grill, and more. All dining room furniture and kitchen equipment are included in the sale, along with approximately $8,000 worth of existing inventory and a profitable oil recycling contract. A detailed equipment list is available upon request. The 1,744 square foot unfinished attic space on the second floor presents expansion potential. The property includes ample paved parking, city sewer, heating and air conditioning, and a metal roof. Currently operating only for lunch, five days a week, this restaurant offers growth potential. This sale includes both the business and the building.
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
$45,073
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
3.00%
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%
$901,460
$901.5K
Cap Rate 7%
$643,900
$643.9K
Cap Rate 9%
$500,811
$500.8K
Market Conditions
NOI Build-Up for 3,744 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
$63.8K $17.04/SF
− Vacancy
−$3.7K −$0.99/SF
EGI
$60.1K $16.05/SF
− OpEx
−$15.0K −$4.01/SF
NOI
$45.1K $12.04/SF
Area
Baldwin County, AL
Vacancy
5.80%
Lease Rate
$17.04 /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%
$901,460
Cap Rate 7%
$643,900
Cap Rate 9%
$500,811
Alternative Uses
Best Use
Specialty Retail
$643.9K
$563.4K – $751.2K
NOI $45,073 @ 7.0% cap · market cap 3.00%
Second Best
Retail
$575.5K
$503.6K – $671.5K
NOI $40,287 @ 7.0% cap · market cap 2.69%
Theoretical Best
Office A
$900.4K
$787.8K – $1.05M
NOI $63,025 @ 7.0% cap · market cap 4.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
7
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36567, AL
14,620
Population
6,054
Households
2.4
Avg Household Size
39
Median Age
17%
College-Educated
86%
High-School Grad
228.7 sq mi
ZIP Area
64
Density / Sq Mi
$59,763
Median Household Income
$40,276
Median Earnings
$943
Median Rent
$220,400
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?
Restaurant - 3,744 SF OPERATING TURN KEY RESTAURANT FOR SALE
Where is this restaurant located?
The property is located at 22272 AL 59 Robertsdale, AL.
What is the asking price?
The asking price for this property is $1,500,000.
