Chicken Salad Chick
For Sale
$805,863
2012 Rainbow Dr, Gadsden, AL 35901
Quick-service restaurant with a rear office component and an established franchise operator in place.
Property Size5,184 SF
Days on Market9
Property Features for 2012 Rainbow Dr
General Information
Standard status
Active
Size
5,184 SF
Property subtype
Commercial
Net Operating Income
$64
Additional Details
Traffic Count
30,300 vehicles/day
Building Details
Building Size
5,184 SF
Year Built
1970
Units
2
Listed By:
Caroline Crain · License #381637 (TN)
(256) 251-2667
Source:
Matthews
Added: Sep 19
Last Checked: Sep 26 at 3:33AM
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 Caroline Crain
Investment Insights
Based on property information with market context.
This restaurant property contains a Chicken Salad Chick location with approximately 1,900 square feet of rear office space. The office area is currently occupied by the owner, with an 18-month lease available from the seller at closing. The restaurant is leased to a franchise operator managing three to four units and benefits from an established operating history.
The property is located at 2012 Rainbow Dr in Gadsden, Alabama, along Rainbow Drive. The corridor records approximately 30,300 vehicles per day, providing direct exposure to a heavily traveled commercial route. The site was built in 1970 and serves as the only Chicken Salad Chick location in Gadsden, according to the provided property information.
The property is located at 2012 Rainbow Dr in Gadsden, Alabama, along Rainbow Drive. The corridor records approximately 30,300 vehicles per day, providing direct exposure to a heavily traveled commercial route. The site was built in 1970 and serves as the only Chicken Salad Chick location in Gadsden, according to the provided property information.
Key Highlights
- Chicken Salad Chick location identified as the only one in Gadsden
- Approximately 30,300 vehicles per day on Rainbow Drive
- Approximately 1,900 SF of rear office 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
$59,332
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
7.36%
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%
$1,186,640
$1.2M
Cap Rate 7%
$847,600
$847.6K
Cap Rate 9%
$659,244
$659.2K
Market Conditions
NOI Build-Up for 5,184 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
$84.0K $16.20/SF
− Vacancy
−$4.9K −$0.94/SF
EGI
$79.1K $15.26/SF
− OpEx
−$19.8K −$3.82/SF
NOI
$59.3K $11.45/SF
Area
Etowah County, AL
Vacancy
5.80%
Lease Rate
$16.20 /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%
$1,186,640
Cap Rate 7%
$847,600
Cap Rate 9%
$659,244
Alternative Uses
Best Use
Specialty Retail
$847.6K
$741.7K – $988.9K
NOI $59,332 @ 7.0% cap · market cap 7.36%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
30,300 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
223
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35901, AL
18,671
Population
9,075
Households
2.1
Avg Household Size
43
Median Age
22%
College-Educated
85%
High-School Grad
59.2 sq mi
ZIP Area
315
Density / Sq Mi
$47,826
Median Household Income
$30,212
Median Earnings
$747
Median Rent
$174,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Quick-service restaurant with a rear office component and an established franchise operator in place.
Where is this conventional restaurant located?
The property is located at 2012 Rainbow Dr Gadsden, AL.
What is the asking price?
The asking price for this property is $805,863.
What are key features of this property?
This property features: Chicken Salad Chick location identified as the only one in Gadsden; Approximately 30,300 vehicles per day on Rainbow Drive; Approximately 1,900 SF of rear office space
