Retail Storefront with Long-Term
For Sale
Contact for pricing
217 1st Street North, Alabaster, AL 35007
Frontage on Highway 31 with private parking and a long-term tenant already in place.
Property Size3,800 SF
Price / SF$111.84
Days on Market56
Property Features for 217 1st Street North
General Information
Standard status
Active
Size
3,800 SF
Property subtype
Retail
Occupancy
100%
Net Operating Income
$34,576
Building Details
Tenancy
Single
Listing Agency:
Shannon Waltchack
(559) 765-7069
Listed By:
Seth Berry · License #AL 000097664
Source:
Crexi
Added: Jun 17
Changed: Aug 8
Last Checked: Jun 24 at 2:30AM
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 Shannon Waltchack
Investment Insights
Based on property information with market context.
This retail storefront property is currently leased to Salon 5, with a long-term tenant in place for more than 20 years and approximately 2.5 years remaining on the lease. The building includes a newer roof and a front deck, supporting continued street-facing presentation.
Located in Alabaster on the Medical Mile along Highway 31, the property offers convenient access to I-65. The site features private parking and provides excellent visibility with frontage on Highway 31, benefiting from its established corridor setting. Alabaster is described as rapidly growing, approximately 25 minutes south of Birmingham.
For buyers seeking an income-producing retail asset with an existing, operating tenant, this storefront provides a straightforward setup: a commercial frontage location, on-site private parking, and recently completed exterior improvements. The lease expiration timeline of roughly 2.5 years remaining should be a key consideration for anyone evaluating near- to mid-term occupancy and disposition planning.
Located in Alabaster on the Medical Mile along Highway 31, the property offers convenient access to I-65. The site features private parking and provides excellent visibility with frontage on Highway 31, benefiting from its established corridor setting. Alabaster is described as rapidly growing, approximately 25 minutes south of Birmingham.
For buyers seeking an income-producing retail asset with an existing, operating tenant, this storefront provides a straightforward setup: a commercial frontage location, on-site private parking, and recently completed exterior improvements. The lease expiration timeline of roughly 2.5 years remaining should be a key consideration for anyone evaluating near- to mid-term occupancy and disposition planning.
Key Highlights
- Long‑term tenant Salon 5 in place for over 20 years with 2.5 years remaining on the lease
- Frontage on Highway 31 in the Medical Mile area with convenient access to I‑65
- Private parking available on‑site
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
$35,790
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
8.42%
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%
$715,800
$715.8K
Cap Rate 7%
$511,286
$511.3K
Cap Rate 9%
$397,667
$397.7K
Market Conditions
NOI Build-Up for 3,800 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
$57.0K $15.00/SF
− Vacancy
−$5.9K −$1.55/SF
EGI
$51.1K $13.46/SF
− OpEx
−$15.3K −$4.04/SF
NOI
$35.8K $9.42/SF
Area
Shelby County, AL
Vacancy
10.30%
Lease Rate
$15.00 /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%
$715,800
Cap Rate 7%
$511,286
Cap Rate 9%
$397,667
Alternative Uses
Best Use
Retail
$511.3K
$447.4K – $596.5K
NOI $35,790 @ 7.0% cap · market cap 8.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$891.9K
$780.5K – $1.04M
NOI $62,436 @ 7.0% cap · market cap 14.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
690
Businesses Nearby
70k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 37%
Shops & Services 28%
Superstores 21%
Office Supplies 14%
McDonald's
Dining
16,484 visits/mo
0.2 miles
Big Lots
Superstores
14,982 visits/mo
0.3 miles
Staples
Office Supplies
9,964 visits/mo
0.3 miles
Dollar General
Shops & Services
9,894 visits/mo
0.3 miles
Jack's Family Restaurants
Dining
9,003 visits/mo
0.2 miles
Demographics for 35007, AL
28,274
Population
10,634
Households
2.7
Avg Household Size
38
Median Age
38%
College-Educated
92%
High-School Grad
39.0 sq mi
ZIP Area
725
Density / Sq Mi
$86,994
Median Household Income
$47,572
Median Earnings
$1,348
Median Rent
$231,800
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Alabaster Florist And Gifts — 117 1st St N, Alabaster, AL 35007
- Donnas Beautiful Buds — 1131 1st St N, Alabaster, AL 35007
Frequently Asked Questions
What type of property is this?
Storefront property - Frontage on Highway 31 with private parking and a long-term tenant already in place.
Where is this storefront property located?
The property is located at 217 1st Street North Alabaster, AL.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Long‑term tenant Salon 5 in place for over 20 years with 2.5 years remaining on the lease; Frontage on Highway 31 in the Medical Mile area with convenient access to I‑65; Private parking available on‑site
