Converted Commercial Office/Retail
For Sale
$525,000
16320 Silverhill Avenue AVE, Silverhill, AL 36576
Former residence converted to commercial use with multiple storage buildings and a pole barn on 1.4 acres.
Property Size2,574 SF
Lot Size1.40 Acres
Price / SF$203.96
Days on Market38
Property Features for 16320 Silverhill Avenue AVE
General Information
Standard status
Active
Size
2,574 SF
Lot size
1.40 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$1,451
Building Details
Year Built
1950
Listing Agency:
Courtney & Morris Fairhope
(251) 622-3590
Listed By:
Joseph Courtney · License #143954-2
(251) 622-3590
Source:
Exitrealty
Added: Jul 25
Changed: Aug 28
Last Checked: Aug 30 at 2:37PM
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 Courtney & Morris Fairhope
Investment Insights
Based on property information with market context.
This for-sale property includes a 2,574 SF commercial building that was converted from a former residence to commercial use. The site also features three additional storage buildings and a pole barn, offering extra space for inventory, storage, or other site needs. Buyer to verify all information during due diligence.
The property is offered at 16320 Silverhill Ave in Silverhill, AL. The flexible interior and multiple outbuildings may support a range of commercial uses, including office or retail, subject to buyer verification.
On a 1.4-acre site, the improvements provide a primary commercial building plus supplementary storage structures, creating a practical configuration for businesses that require both workspace and on-site storage.
The property is offered at 16320 Silverhill Ave in Silverhill, AL. The flexible interior and multiple outbuildings may support a range of commercial uses, including office or retail, subject to buyer verification.
On a 1.4-acre site, the improvements provide a primary commercial building plus supplementary storage structures, creating a practical configuration for businesses that require both workspace and on-site storage.
Key Highlights
- 2,574 SF commercial property converted from a former residence for office, retail, or other commercial uses
- Set on 1.4 acres with three additional storage buildings and a pole barn
- Includes multiple outbuildings suitable for storage or support space
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
$30,023
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
5.72%
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%
$600,460
$600.5K
Cap Rate 7%
$428,900
$428.9K
Cap Rate 9%
$333,589
$333.6K
Market Conditions
NOI Build-Up for 2,574 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
$49.4K $19.20/SF
− Vacancy
−$9.4K −$3.65/SF
EGI
$40.0K $15.55/SF
− OpEx
−$10.0K −$3.89/SF
NOI
$30.0K $11.66/SF
Area
Baldwin County, AL
Vacancy
19.00%
Lease Rate
$19.20 /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%
$600,460
Cap Rate 7%
$428,900
Cap Rate 9%
$333,589
Alternative Uses
Best Use
Office B
$428.9K
$375.3K – $500.4K
NOI $30,023 @ 7.0% cap · market cap 5.72%
Second Best
Retail
$395.7K
$346.2K – $461.6K
NOI $27,697 @ 7.0% cap · market cap 5.28%
Theoretical Best
Office A
$619.0K
$541.6K – $722.2K
NOI $43,330 @ 7.0% cap · market cap 8.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
12
Businesses Nearby
Explore this area
Business Placement
Demographics for 36576, AL
5,228
Population
2,183
Households
2.4
Avg Household Size
40
Median Age
21%
College-Educated
93%
High-School Grad
19.5 sq mi
ZIP Area
268
Density / Sq Mi
$78,227
Median Household Income
$43,992
Median Earnings
$985
Median Rent
$235,600
Median Home Value
Market
Vacancy Rate% for Office 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?
Office units - Former residence converted to commercial use with multiple storage buildings and a pole barn on 1.4 acres.
Where is this office units located?
The property is located at 16320 Silverhill Avenue AVE Silverhill, AL.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: 2,574 SF commercial property converted from a former residence for office, retail, or other commercial uses; Set on 1.4 acres with three additional storage buildings and a pole barn; Includes multiple outbuildings suitable for storage or support space
