Industrial Land with Two-Story
For Sale
$239,000
268 Nichols Road 1, Chelsea, AL 35043
Multi-build-acre property with a two-story steel-beam garage, paved frontage, and a completed perc test.
Property Size3,000 SF
Lot Size8.56 Acres
Price / SF$79.67
Days on Market53
Property Features for 268 Nichols Road 1
General Information
Standard status
Active
Size
3,000 SF
Lot size
8.56 Acres
Property subtype
Lots/Land
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Stories
2
Listing Agency:
RE/MAX Advantage
(205) 369-2278
Listed By:
Brian Thomas · License #86824
(205) 369-2278
Source:
Exitrealty
Added: Jun 19
Changed: Aug 8
Last Checked: Jun 30 at 8:00PM
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 RE/MAX Advantage
Investment Insights
Based on property information with market context.
This listing offers 8.56 acres of industrial-minded land with multiple potential build sites. On the property sits an approximately 3,000-square-foot two-story garage constructed with steel beams and 6-inch concrete, along with a 12-by-24 storage building already in place. Power is available, and an approved perc test has been completed.
The property features paved road frontage and an existing drive, providing practical access for future development. It is located outside city limits, with large-acreage neighbors, and the property is described as having no HOA. The listing also notes easy access to Chelsea’s shopping, dining, and major highways, and that additional acreage may be available.
For buyers looking for a larger, flexible site, the existing garage and storage structure can support a range of light industrial, service, or storage-oriented uses while you plan future construction. The completed perc test and utility availability can help streamline early planning steps for intended development.
The property features paved road frontage and an existing drive, providing practical access for future development. It is located outside city limits, with large-acreage neighbors, and the property is described as having no HOA. The listing also notes easy access to Chelsea’s shopping, dining, and major highways, and that additional acreage may be available.
For buyers looking for a larger, flexible site, the existing garage and storage structure can support a range of light industrial, service, or storage-oriented uses while you plan future construction. The completed perc test and utility availability can help streamline early planning steps for intended development.
Key Highlights
- 8.56‑acre property in the Chelsea School District with several build sites to choose from
- Approximately 3,000 SF two‑story steel‑beam garage with 6" concrete
- Paved road frontage plus an existing drive for easier access to the property
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
$15,189
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
6.36%
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%
$303,780
$303.8K
Cap Rate 7%
$216,986
$217.0K
Cap Rate 9%
$168,767
$168.8K
Market Conditions
NOI Build-Up for 3,000 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
$19.7K $6.56/SF
− Vacancy
−$1.8K −$0.60/SF
EGI
$17.9K $5.96/SF
− OpEx
−$2.7K −$0.89/SF
NOI
$15.2K $5.06/SF
Area
Shelby County, AL
Vacancy
9.20%
Lease Rate
$6.56 /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%
$303,780
Cap Rate 7%
$216,986
Cap Rate 9%
$168,767
Alternative Uses
Best Use
Warehouse
$217.0K
$189.9K – $253.2K
NOI $15,189 @ 7.0% cap · market cap 6.36%
Second Best
Flex RnD
$182.5K
$159.7K – $212.9K
NOI $12,776 @ 7.0% cap · market cap 5.35%
Theoretical Best
Office A
$704.2K
$616.1K – $821.5K
NOI $49,291 @ 7.0% cap · market cap 20.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
20
Businesses Nearby
Explore this area
Business Placement
Demographics for 35043, AL
13,841
Population
5,126
Households
2.7
Avg Household Size
37
Median Age
43%
College-Educated
97%
High-School Grad
46.2 sq mi
ZIP Area
300
Density / Sq Mi
$115,588
Median Household Income
$56,739
Median Earnings
$1,279
Median Rent
$347,500
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?
Residential land & home lot - Multi-build-acre property with a two-story steel-beam garage, paved frontage, and a completed perc test.
Where is this residential land & home lot located?
The property is located at 268 Nichols Road 1 Chelsea, AL.
What is the asking price?
The asking price for this property is $239,000.
What are key features of this property?
This property features: 8.56‑acre property in the Chelsea School District with several build sites to choose from; Approximately 3,000 SF two‑story steel‑beam garage with 6" concrete; Paved road frontage plus an existing drive for easier access to the property
