Retail Property For
For Sale
$500,000
1425 Ann St, Montgomery, AL 36107
Retail property offered for sale with approximately 3,195 SF of space and a stated 6.50% cap rate.
Property Size3,195 SF
Price / SF$156.49
Days on Market150
Property Features for 1425 Ann St
General Information
Standard status
Active
Size
3,195 SF
Property subtype
Commercial
Additional Details
Cap Rate
6.5%
Listed By:
Grant Morgan · License #430218 (GA)
(205) 610-8670
Source:
Matthews
Added: Apr 10
Changed: Sep 3
Last Checked: Sep 6 at 3:49AM
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 Grant Morgan
Investment Insights
Based on property information with market context.
This retail property is offered for sale and includes approximately 3,195 SF of space. The offering materials reference a 6.50% cap rate.
The property is located at 1425 Ann Street in Montgomery, Alabama (36107).
The property is located at 1425 Ann Street in Montgomery, Alabama (36107).
Key Highlights
- Retail property for sale with approximately 3,195 SF of space
- Stated 6.50% cap rate
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
$35,469
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
7.09%
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%
$709,380
$709.4K
Cap Rate 7%
$506,700
$506.7K
Cap Rate 9%
$394,100
$394.1K
Market Conditions
NOI Build-Up for 3,195 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
$53.7K $16.80/SF
− Vacancy
−$3.0K −$0.94/SF
EGI
$50.7K $15.86/SF
− OpEx
−$15.2K −$4.76/SF
NOI
$35.5K $11.10/SF
Area
Montgomery, AL
Vacancy
5.60%
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%
$709,380
Cap Rate 7%
$506,700
Cap Rate 9%
$394,100
Alternative Uses
Best Use
Retail
$506.7K
$443.4K – $591.2K
NOI $35,469 @ 7.0% cap · market cap 7.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$662.5K
$579.7K – $772.9K
NOI $46,376 @ 7.0% cap · market cap 9.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
838
Businesses Nearby
355k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 67%
Shops & Services 21%
Apparel 8%
Electronics 4%
Chick-fil-A
Dining
49,636 visits/mo
0.3 miles
McDonald's
Dining
34,073 visits/mo
0.2 miles
Dollar Tree
Shops & Services
25,387 visits/mo
0.4 miles
Ross Dress for Less
Apparel
23,621 visits/mo
0.4 miles
Circle K
Shops & Services
23,039 visits/mo
0.3 miles
Demographics for 36107, AL
8,418
Population
3,995
Households
2.1
Avg Household Size
35
Median Age
17%
College-Educated
84%
High-School Grad
3.2 sq mi
ZIP Area
2,631
Density / Sq Mi
$31,895
Median Household Income
$27,173
Median Earnings
$883
Median Rent
$69,800
Median Home Value
Market
Vacancy Rate% for Retail in Montgomery, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Retail property offered for sale with approximately 3,195 SF of space and a stated 6.50% cap rate.
Where is this retail space located?
The property is located at 1425 Ann St Montgomery, AL.
What is the asking price?
The asking price for this property is $500,000.
What are key features of this property?
This property features: Retail property for sale with approximately 3,195 SF of space; Stated 6.50% cap rate
