Daphne Retail Investment
For Sale
$1,799,000
28791 US-98, Daphne, AL 36526
2,280 SF PRICE IMPROVEMENT! 28791 US Highway 98 Retail For Sale
Property Size4,984 SF
Lot Size1.96 Acres
Price / SF$360.96
Days on Market555
Property Features for 28791 US-98
General Information
Standard status
Active
Property type
Other retail properties, Individual retail properties, Other investment properties, Retail properties & Spaces, Investment properties
Size
4,984 SF
Net Rentable
2,280 SF
Elevators
N/A
Lot size
1.96 Acres
Building Details
Buildings
2
Stories
1
Listing Agency:
(251) 604-7189
Listed By:
Joe
(251) 604-7189
Added: Feb 10, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This retail property is located in Daphne, Alabama, on US-98 near I-10. The 1.95-acre site is situated in a prime retail corridor with high visibility. The property includes a 2,280 sq ft main building and a 1,000 sq ft temporary structure. The total building size is 4984 sq ft. The property is currently occupied by Sunrise Marine Daphne, a tenant of One Water Marine/Legendary Marine. The location benefits from a high traffic count of 37,500 AADT. It is near major retailers, including Home Depot, Bass Pro Shops, and Dick's Sporting Goods. The property offers easy access from US-98 via a service road. The tenant has a long-term lease in place and holds a first right of refusal. Note that no signage is permitted on the property per owner request.
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
$53,630
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
2.98%
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%
$1,072,600
$1.1M
Cap Rate 7%
$766,143
$766.1K
Cap Rate 9%
$595,889
$595.9K
Market Conditions
NOI Build-Up for 4,984 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
$83.7K $16.80/SF
− Vacancy
−$7.1K −$1.43/SF
EGI
$76.6K $15.37/SF
− OpEx
−$23.0K −$4.61/SF
NOI
$53.6K $10.76/SF
Area
Baldwin County, AL
Vacancy
8.50%
Lease Rate
$16.80 /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%
$1,072,600
Cap Rate 7%
$766,143
Cap Rate 9%
$595,889
Alternative Uses
Best Use
Retail
$766.1K
$670.4K – $893.8K
NOI $53,630 @ 7.0% cap · market cap 2.98%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $83,899 @ 7.0% cap · market cap 4.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
488
Businesses Nearby
158k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 66%
Shops & Services 32%
Electronics 1%
Beauty & Spa 1%
McDonald's
Dining
28,611 visits/mo
0.3 miles
Foosackly's
Dining
21,500 visits/mo
0.3 miles
Shell
Shops & Services
19,879 visits/mo
0.4 miles
Exxon
Shops & Services
15,776 visits/mo
0.4 miles
Circle K
Shops & Services
14,646 visits/mo
0.2 miles
Demographics for 36526, AL
35,720
Population
14,074
Households
2.5
Avg Household Size
40
Median Age
43%
College-Educated
94%
High-School Grad
37.7 sq mi
ZIP Area
947
Density / Sq Mi
$90,733
Median Household Income
$50,049
Median Earnings
$1,353
Median Rent
$311,000
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?
Other retail property - 2,280 SF PRICE IMPROVEMENT! 28791 US Highway 98 Retail For Sale
Where is this other retail property located?
The property is located at 28791 US-98 Daphne, AL.
What is the asking price?
The asking price for this property is $1,799,000.
