Turnkey Restaurant in Dothan,
For Sale
$3,295,000
1708 westgate parkway, Dothan, AL 36303
1708 West Gate | 6,700 SF Freestanding Restaurant For Sale
Property Size9,329 SF
Lot Size2.44 Acres
Price / SF$353.20
Days on Market565
Property Features for 1708 westgate parkway
General Information
Standard status
Active
Property type
Restaurants, Other retail properties, Individual retail properties, Retail properties & Spaces
Size
9,329 SF
Net Rentable
6,700 SF
Elevators
N/A
Lot size
2.44 Acres
Building Details
Year Built
2019
Buildings
1
Stories
1
Listing Agency:
(850) 564-0120
Listed By:
Paul
(850) 564-0120
Added: Feb 10, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This 6,700 square foot freestanding restaurant is located at 1708 Westgate Parkway in Dothan, Alabama. Built in 2019, the property sits on a 2.44-acre lot and has a total building size of 9,329 square feet. The restaurant features a convenient pick-up window, adding to its operational efficiency. A recently added bar room enhances the space's versatility. This second-generation restaurant is in turnkey condition, meaning it's ready for immediate occupancy and operation. The property's excellent condition and prime location in Dothan make it an attractive investment opportunity. The property is categorized as a restaurant, and also falls under the broader categories of other retail properties, individual retail properties, and retail properties. The property's size and features make it suitable for a variety of restaurant concepts.
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
$97,605
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
2.96%
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%
$1,952,100
$2.0M
Cap Rate 7%
$1,394,357
$1.4M
Cap Rate 9%
$1,084,500
$1.1M
Market Conditions
NOI Build-Up for 9,329 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
$139.9K $15.00/SF
− Vacancy
−$9.8K −$1.05/SF
EGI
$130.1K $13.95/SF
− OpEx
−$32.5K −$3.49/SF
NOI
$97.6K $10.46/SF
Area
Houston County, AL
Vacancy
7.00%
Lease Rate
$15.00 /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%
$1,952,100
Cap Rate 7%
$1,394,357
Cap Rate 9%
$1,084,500
Alternative Uses
Best Use
Specialty Retail
$1.39M
$1.22M – $1.63M
NOI $97,605 @ 7.0% cap · market cap 2.96%
Second Best
Retail
$929.0K
$812.9K – $1.08M
NOI $65,029 @ 7.0% cap · market cap 1.97%
Theoretical Best
Healthcare Medical
$1.65M
$1.44M – $1.92M
NOI $115,423 @ 7.0% cap · market cap 3.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
33
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Restaurant - 1708 West Gate | 6,700 SF Freestanding Restaurant For Sale
Where is this restaurant located?
The property is located at 1708 westgate parkway Dothan, AL.
What is the asking price?
The asking price for this property is $3,295,000.
