Thriving Strip Mall on
For Sale
Contact for pricing
3820-3840 AL-59, Foley, AL
Fully occupied 12,000 SF strip mall on Highway 59.
Property Size12,000 SF
Lot Size1.08 Acres
Price / SF$241.67
Days on Market1018
Property Features for 3820-3840 AL-59
General Information
Standard status
Active
Size
12,000 SF
Lot size
1.08 Acres
Property subtype
RETAIL
Listing Agency:
Re/Max of Orange Beach
(251) 981-2400
Listed By:
Heather Harp · License #1469791
(251) 533-6677
Source:
Moodyscre
Added: Nov 30, 2023
Changed: Sep 2
Last Checked: Sep 12 at 10:08AM
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 Re/Max of Orange Beach
Investment Insights
Based on property information with market context.
Parkway Plaza is a strip mall strategically positioned along Highway 59. The complex comprises 13 rental spaces, ranging from 450 to over 2000 square feet, creating a versatile retail landscape. The property has a 100% occupancy rate and a tenant mix. This 12,000 square foot property has long-term lessees, easy access, and ample parking. An income producing sign is located on the south end of the property. The building's roof was replaced in 2021, and new flooring was installed the same year. Additionally, all parking lots were upgraded with LED light fixtures in 2022.
Key Highlights
- 100% Occupancy Rate: Demonstrates strong and consistent income generation.
- Strategic Location: Positioned along Highway 59, offering high visibility and accessibility.
- Versatile Retail Landscape: Comprises 13 rental spaces ranging from 450 to over 2000 sqft, attracting a diverse tenant base.
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
$129,125
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
4.45%
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%
$2,582,500
$2.6M
Cap Rate 7%
$1,844,643
$1.8M
Cap Rate 9%
$1,434,722
$1.4M
Market Conditions
NOI Build-Up for 12,000 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
$201.6K $16.80/SF
− Vacancy
−$17.1K −$1.43/SF
EGI
$184.5K $15.37/SF
− OpEx
−$55.3K −$4.61/SF
NOI
$129.1K $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%
$2,582,500
Cap Rate 7%
$1,844,643
Cap Rate 9%
$1,434,722
Alternative Uses
Best Use
Retail
$1.84M
$1.61M – $2.15M
NOI $129,125 @ 7.0% cap · market cap 4.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.89M
$2.53M – $3.37M
NOI $202,003 @ 7.0% cap · market cap 6.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
57
Businesses Nearby
Explore this area
Business Placement
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?
Strip mall - Fully occupied 12,000 SF strip mall on Highway 59.
Where is this strip mall located?
The property is located at 3820-3840 AL-59 Foley, AL.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: 100% Occupancy Rate: Demonstrates strong and consistent income generation.; Strategic Location: Positioned along Highway 59, offering high visibility and accessibility.; Versatile Retail Landscape: Comprises 13 rental spaces ranging from 450 to over 2000 sqft, attracting a diverse tenant base.
