NNN Pharmacy
For Sale
Contact for pricing
1955 E Main St, Dothan, AL 36301
Retail asset with a long-term CVS lease, corporate guaranty, and recently improved roof system.
Property Size10,125 SF
Price / SF$358.91
Days on Market18
Property Features for 1955 E Main St
General Information
Standard status
Active
Size
10,125 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NN
Net Operating Income
$234,394
Building Details
Year Built
1999
Units
1
Tenancy
Single
Listing Agency:
Marcus & Millichap - Mobile
(205) 871-5360
Listed By:
Andrew Chason · License #AL 000079317-0
Source:
Crexi
Added: Aug 14
Changed: Aug 31
Last Checked: Aug 31 at 8:23AM
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 - Mobile
Investment Insights
Based on property information with market context.
This NNN pharmacy property is part of a six-property CVS portfolio and is located at 1955 E Main St in Dothan, Alabama. Built in 1999, the asset is 100 percent leased to Alabama CVS Pharmacy, LLC, with a corporate guaranty from CVS Health Corporation. The lease structure requires reimbursement of operating expenses, including taxes, insurance, and common area expenses, along with amortized parking lot repairs and replacement costs.
The portfolio includes properties in Dothan, Montgomery, Vestavia Hills, Hueytown, Huntsville, and Madison, with the option to acquire the full group or individual assets. Primary lease terms have approximately 12 to 14 years remaining; five leases extend through 2038, while the Huntsville location extends through 2040. All six properties have roofs installed or replaced between 2018 and 2026, supported by manufacturer warranties ranging from 15 to 20 years.
The portfolio includes properties in Dothan, Montgomery, Vestavia Hills, Hueytown, Huntsville, and Madison, with the option to acquire the full group or individual assets. Primary lease terms have approximately 12 to 14 years remaining; five leases extend through 2038, while the Huntsville location extends through 2040. All six properties have roofs installed or replaced between 2018 and 2026, supported by manufacturer warranties ranging from 15 to 20 years.
Key Highlights
- 100 percent leased to Alabama CVS Pharmacy, LLC
- Corporate guaranty from CVS Health Corporation
- Approximately 12 to 14 years of remaining primary lease term
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
$105,933
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
2.92%
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%
$2,118,660
$2.1M
Cap Rate 7%
$1,513,329
$1.5M
Cap Rate 9%
$1,177,033
$1.2M
Market Conditions
NOI Build-Up for 10,125 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
$151.9K $15.00/SF
− Vacancy
−$10.6K −$1.05/SF
EGI
$141.2K $13.95/SF
− OpEx
−$35.3K −$3.49/SF
NOI
$105.9K $10.46/SF
Area
Houston County, AL
Vacancy
7.00%
Lease Rate
$15.00 /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%
$2,118,660
Cap Rate 7%
$1,513,329
Cap Rate 9%
$1,177,033
Alternative Uses
Best Use
Specialty Retail
$1.51M
$1.32M – $1.77M
NOI $105,933 @ 7.0% cap · market cap 2.92%
Second Best
Retail
$1.01M
$882.2K – $1.18M
NOI $70,578 @ 7.0% cap · market cap 1.94%
Theoretical Best
Healthcare Medical
$1.79M
$1.57M – $2.09M
NOI $125,271 @ 7.0% cap · market cap 3.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
736
Businesses Nearby
219k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 69%
Shops & Services 19%
Groceries 11%
Hotels & Casinos 1%
Chick-fil-A
Dining
41,299 visits/mo
0.1 miles
McDonald's
Dining
27,767 visits/mo
0.1 miles
Winn-Dixie
Groceries
25,008 visits/mo
0.3 miles
SONIC Drive In
Dining
13,231 visits/mo
0.1 miles
Shell
Shops & Services
12,217 visits/mo
0.1 miles
Demographics for 36301, AL
38,447
Population
17,872
Households
2.2
Avg Household Size
40
Median Age
18%
College-Educated
85%
High-School Grad
89.2 sq mi
ZIP Area
431
Density / Sq Mi
$49,124
Median Household Income
$35,333
Median Earnings
$886
Median Rent
$156,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Retail asset with a long-term CVS lease, corporate guaranty, and recently improved roof system.
Where is this nnn property located?
The property is located at 1955 E Main St Dothan, AL.
What is the asking price?
The asking price for this property is $3,634,012.
What are key features of this property?
This property features: 100 percent leased to Alabama CVS Pharmacy, LLC; Corporate guaranty from CVS Health Corporation; Approximately 12 to 14 years of remaining primary lease term
