Jetplex Area Investment
For Sale
$7,861,000
277 Westchester Road, Madison, AL 35758
60,000 SF industrial property with long-term NNN leases.
Property Size60,000 SF
Days on Market279
Property Features for 277 Westchester Road
General Information
Standard status
Active
Size
60,000 SF
Property subtype
Industrial
Building Details
Building Size
60,000 SF
Listing Agency:
(256) 382-9010
Listed By:
Jeremy D. Pope, CCIM, SIOR
Source:
Grahamcompany
Added: Nov 21, 2025
Changed: Aug 23
Last Checked: Aug 26 at 7:24AM
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 Jeremy D. Pope, CCIM, SIOR
Investment Insights
Based on property information with market context.
This 100% occupied investment opportunity is located in the Jetplex area and totals 60,000 square feet, comprised of two 30,000-square-foot buildings. OHM Intl occupies Building 1, and Wittichen Supply occupies Building 2. The property features NNN leases, with a 7-year lease commencing in 2025 and a 10-year lease commencing in 2026. The property also includes a 10-year property tax abatement transferable to the buyer. Located in Madison, Alabama, this industrial area provides a strategic location for warehouse and distribution investors. Madison offers convenient access to major transportation routes, including I-565 and Huntsville International Airport, supporting efficient logistics and distribution operations. The estimated net operating income for the first year is $550,000.
Key Highlights
- High‑value investment opportunity with a strong NOI of $550,000 (Year 1 Estimated)
- Long‑term, NNN leases in place with staggered 7‑year and 10‑year terms, commencing in 2025 and 2026, ensuring stable income
- 10‑year property tax abatement transferable to the buyer, providing significant cost savings
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
$306,147
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
3.89%
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%
$6,122,940
$6.1M
Cap Rate 7%
$4,373,529
$4.4M
Cap Rate 9%
$3,401,633
$3.4M
Market Conditions
NOI Build-Up for 60,000 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
$374.4K $6.24/SF
− Vacancy
−$14.2K −$0.24/SF
EGI
$360.2K $6.00/SF
− OpEx
−$54.0K −$0.90/SF
NOI
$306.1K $5.10/SF
Area
Madison County, AL
Vacancy
3.80%
Lease Rate
$6.24 /SF/Yr
Expense Ratio
15.00%
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%
$6,122,940
Cap Rate 7%
$4,373,529
Cap Rate 9%
$3,401,633
Alternative Uses
Best Use
Warehouse
$4.37M
$3.83M – $5.10M
NOI $306,147 @ 7.0% cap · market cap 3.89%
Second Best
Industrial
$3.47M
$3.04M – $4.05M
NOI $243,180 @ 7.0% cap · market cap 3.09%
Theoretical Best
Office A
$15.62M
$13.67M – $18.23M
NOI $1,093,680 @ 7.0% cap · market cap 13.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
17
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 35758, AL
48,192
Population
20,322
Households
2.4
Avg Household Size
38
Median Age
64%
College-Educated
98%
High-School Grad
27.2 sq mi
ZIP Area
1,772
Density / Sq Mi
$115,780
Median Household Income
$61,321
Median Earnings
$1,375
Median Rent
$336,700
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - 60,000 SF industrial property with long-term NNN leases.
Where is this warehouse located?
The property is located at 277 Westchester Road Madison, AL.
What is the asking price?
The asking price for this property is $7,861,000.
What are key features of this property?
This property features: High‑value investment opportunity with a strong NOI of $550,000 (Year 1 Estimated); Long‑term, NNN leases in place with staggered 7‑year and 10‑year terms, commencing in 2025 and 2026, ensuring stable income; 10‑year property tax abatement transferable to the buyer, providing significant cost savings
