Two-Building Warehouse
For Sale
$439,000
1490 Gravel Ridge Road, Somerville, AL 35670
Business Opportunity, Somerville, AL
Property Size3,440 SF
Lot Size2.50 Acres
Price / SF$127.62
Days on Market93
Property Features for 1490 Gravel Ridge Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Subdivision
Metes And Bounds
Lot features
Corner Lot
Directions
From South Huntsville, Take Right Off 231 Onto Hwy 36, Turn Right Onto Upper River Road, Property On The Right. From Decatur, Take Hwy 67 East, Turn Left Onto Upper River Road, Property Will Be On Left.
Standard status
Active
APN
10 05 22 0 000 005.008
Size
3,440 SF
Lot size
2.50 Acres
Utilities
Sewer type
Septic Tank
Water source
Public
Building Details
Year built
2014
Floors in Building
1
Flooring type
Concrete
Roof type
Metal
Listing Agency:
Coldwell Banker Mcmillan · Coldwell Banker Real Estate
(256) 340-0222
Listed By:
Dianne Barrett · License #102849
(256) 303-2947
Added: Jun 4
Changed: Sep 3
Last Checked: Sep 4 at 5:06PM
MLS# 21919914
Copyright © 2026 ValleyMLS.Com,Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This warehouse property encompasses 2.5 acres with two metal buildings totaling 3,440 square feet. The larger 2,400-square-foot structure was built in 2014 and includes insulation, a concrete slab, restroom, two commercial-grade roll-up doors, and a separate entry door. The second building contains 1,040 square feet, a concrete slab, one commercial-grade roll-up door, and an entry door.
A concrete loading pad supports site operations, while frontage on three sides provides access along Upper River Road, Gravel Ridge, and Curry Chapel. The property uses public water and a septic tank, with concrete flooring and metal roofing throughout the buildings.
A concrete loading pad supports site operations, while frontage on three sides provides access along Upper River Road, Gravel Ridge, and Curry Chapel. The property uses public water and a septic tank, with concrete flooring and metal roofing throughout the buildings.
Key Highlights
- 2.5‑acre warehouse property with two metal buildings totaling 3,440 square feet
- 2,400‑square‑foot primary building with insulation, restroom, concrete slab, and two commercial‑grade roll‑up doors
- 1,040‑square‑foot secondary building with concrete slab, entry door, and commercial‑grade roll‑up door
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
$20,275
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
4.62%
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%
$405,500
$405.5K
Cap Rate 7%
$289,643
$289.6K
Cap Rate 9%
$225,278
$225.3K
Market Conditions
NOI Build-Up for 3,440 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
$25.6K $7.44/SF
− Vacancy
−$1.7K −$0.51/SF
EGI
$23.9K $6.93/SF
− OpEx
−$3.6K −$1.04/SF
NOI
$20.3K $5.89/SF
Area
Morgan County, AL
Vacancy
6.80%
Lease Rate
$7.44 /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%
$405,500
Cap Rate 7%
$289,643
Cap Rate 9%
$225,278
Alternative Uses
Best Use
Warehouse
$289.6K
$253.4K – $337.9K
NOI $20,275 @ 7.0% cap · market cap 4.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$715.7K
$626.2K – $835.0K
NOI $50,097 @ 7.0% cap · market cap 11.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
4
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35670, AL
7,780
Population
3,239
Households
2.4
Avg Household Size
43
Median Age
19%
College-Educated
80%
High-School Grad
98.6 sq mi
ZIP Area
79
Density / Sq Mi
$48,531
Median Household Income
$29,500
Median Earnings
$765
Median Rent
$165,200
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Warehouse - Two metal warehouse buildings provide separate work areas, loading infrastructure, and multiple roll-up doors.
Where is this warehouse located?
The property is located at 1490 Gravel Ridge Road Somerville, AL.
What is the asking price?
The asking price for this property is $439,000.
What are key features of this property?
This property features: 2.5‑acre warehouse property with two metal buildings totaling 3,440 square feet; 2,400‑square‑foot primary building with insulation, restroom, concrete slab, and two commercial‑grade roll‑up doors; 1,040‑square‑foot secondary building with concrete slab, entry door, and commercial‑grade roll‑up door
