Single-Tenant Medical Office
For Sale
$916,025
754 Main St, Gardendale, AL 35071
Purpose-built medical office built in 2005, currently occupied under a triple-net lease with 2% annual escalations.
Property Size2,900 SF
Price / SF$315.87
Days on Market58
Property Features for 754 Main St
General Information
Standard status
Active
Size
2,900 SF
Property subtype
Office Medical
Occupancy
100%
Amenities
Single Tenant Net Lease Medical Office: 2,900 SF freestanding building on 1.29 acres, purpose-built in 2005/2006 for Southern Focus Vision Center
7.75% Cap Rate on in-place NOI of $70,992; offered at $916,025 ($315.87/SF)
Built-In Rent Growth: 2% annual rent escalations throughout the primary term, growing NOI and cap rate to 8.55% by lease end
Continuously Operating Since 2006: Nearly 20-year operating history at this location demonstrates strong tenant commitment to the site
Affluent, Growing Trade Area: 3-mile average household income of $97,188, a 40% premium over the Birmingham MSA average ($69,447)
Built-In Patient Base: Immediately adjacent to Gardendale High School and close to Gardendale Elementary and Bragg Middle School, plus UAB Medicine nearby
Located in the Birmingham-Hoover MSA: Alabama's largest metro area (1.2M population) with a diversifying economy in healthcare, biotech, and advanced manufacturing
Building Details
Building Size
2,900 SF
Year Built
2005
Listing Agency:
Marcus & Millichap - Birmingham
Listed By:
Eddie Greenhalgh · License #License(s) AL: 0000882980
(205) 510-9200
Source:
Marcusmillichap
Added: Jul 8
Changed: Aug 25
Last Checked: Sep 2 at 1:41PM
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 Marcus & Millichap - Birmingham
Investment Insights
Based on property information with market context.
This single-tenant medical office building at 754 Main St was constructed in 2005 and has been continuously operated since 2006. The property is occupied by Southern Focus Vision Center and managed by TeamVision, LLC. The lease is structured as a triple-net arrangement.
The building is located adjacent to Gardendale High School, with immediate proximity to surrounding residential neighborhoods. Lease terms include built-in 2% annual rent escalations throughout the primary term, and the tenant has two five-year renewal options.
The property is presented as an opportunity backed by EssilorLuxottica, part of the EssilorLuxottica family, with the remarks noting approximately $32B in annual revenue, 200,000+ employees, and 17,600+ retail locations globally. Demographic information provided includes a 3-mile average household income of $97,188.
The building is located adjacent to Gardendale High School, with immediate proximity to surrounding residential neighborhoods. Lease terms include built-in 2% annual rent escalations throughout the primary term, and the tenant has two five-year renewal options.
The property is presented as an opportunity backed by EssilorLuxottica, part of the EssilorLuxottica family, with the remarks noting approximately $32B in annual revenue, 200,000+ employees, and 17,600+ retail locations globally. Demographic information provided includes a 3-mile average household income of $97,188.
Key Highlights
- Purpose‑built single‑tenant medical office building constructed in 2005
- Currently occupied under a triple‑net lease; continuous operation since 2006
- Tenant is Southern Focus Vision Center, with property managed by TeamVision, LLC (EssilorLuxottica family)
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
$51,105
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
5.58%
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%
$1,022,100
$1.0M
Cap Rate 7%
$730,071
$730.1K
Cap Rate 9%
$567,833
$567.8K
Market Conditions
NOI Build-Up for 2,900 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
$76.9K $26.52/SF
− Vacancy
−$8.8K −$3.02/SF
EGI
$68.1K $23.50/SF
− OpEx
−$17.0K −$5.87/SF
NOI
$51.1K $17.62/SF
Area
Jefferson County, AL
Vacancy
11.40%
Lease Rate
$26.52 /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%
$1,022,100
Cap Rate 7%
$730,071
Cap Rate 9%
$567,833
Alternative Uses
Best Use
Office B
$730.1K
$638.8K – $851.8K
NOI $51,105 @ 7.0% cap · market cap 5.58%
Second Best
Healthcare Medical
$703.0K
$615.1K – $820.2K
NOI $49,209 @ 7.0% cap · market cap 5.37%
Theoretical Best
Office A
$997.7K
$873.0K – $1.16M
NOI $69,836 @ 7.0% cap · market cap 7.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
530
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35071, AL
17,162
Population
7,054
Households
2.4
Avg Household Size
42
Median Age
33%
College-Educated
91%
High-School Grad
57.7 sq mi
ZIP Area
297
Density / Sq Mi
$80,745
Median Household Income
$57,103
Median Earnings
$1,183
Median Rent
$239,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Purpose-built medical office built in 2005, currently occupied under a triple-net lease with 2% annual escalations.
Where is this medical office space located?
The property is located at 754 Main St Gardendale, AL.
What is the asking price?
The asking price for this property is $916,025.
What are key features of this property?
This property features: Purpose‑built single‑tenant medical office building constructed in 2005; Currently occupied under a triple‑net lease; continuous operation since 2006; Tenant is Southern Focus Vision Center, with property managed by TeamVision, LLC (EssilorLuxottica family)
