Commercial Building on High-Traffic
For Sale
Contact for pricing
2741 Zelda Rd, Montgomery, AL 36106
Commercial building and land with high traffic and great exposure.
Property Size4,217 SF
Price / SF$188.52
Days on Market147
Property Features for 2741 Zelda Rd
General Information
Standard status
Active
Size
4,217 SF
Property subtype
Mixed Use, Office, Retail
Listing Agency:
Sullivan & Wills - Grant Sullivan
Listed By:
Grant Sullivan · License #AL
Source:
Crexi
Added: Mar 20
Changed: Aug 8
Last Checked: Aug 10 at 11:31AM
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 Sullivan & Wills - Grant Sullivan
Investment Insights
Based on property information with market context.
This commercial property includes both a building and land, situated in an area with high traffic. The property is zoned for commercial use, offering great exposure. The building has a size of 4217 square feet and is suitable for mixed-use, office, and retail purposes.
Key Highlights
- Zoned Commercial
- High Traffic Location, great for business
- Building and Land Included
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
$46,815
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
5.89%
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%
$936,300
$936.3K
Cap Rate 7%
$668,786
$668.8K
Cap Rate 9%
$520,167
$520.2K
Market Conditions
NOI Build-Up for 4,217 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
$70.8K $16.80/SF
− Vacancy
−$4.0K −$0.94/SF
EGI
$66.9K $15.86/SF
− OpEx
−$20.1K −$4.76/SF
NOI
$46.8K $11.10/SF
Area
Montgomery, AL
Vacancy
5.60%
Lease Rate
$16.80 /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%
$936,300
Cap Rate 7%
$668,786
Cap Rate 9%
$520,167
Alternative Uses
Best Use
Retail
$668.8K
$585.2K – $780.3K
NOI $46,815 @ 7.0% cap · market cap 5.89%
Second Best
Office B
$666.9K
$583.5K – $778.0K
NOI $46,682 @ 7.0% cap · market cap 5.87%
Theoretical Best
Office A
$874.4K
$765.1K – $1.02M
NOI $61,211 @ 7.0% cap · market cap 7.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
407
Businesses Nearby
Explore this area
Business Placement
Demographics for 36106, AL
15,438
Population
7,236
Households
2.1
Avg Household Size
39
Median Age
51%
College-Educated
96%
High-School Grad
6.2 sq mi
ZIP Area
2,490
Density / Sq Mi
$71,202
Median Household Income
$40,398
Median Earnings
$1,138
Median Rent
$207,400
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?
Mixed-use property - Commercial building and land with high traffic and great exposure.
Where is this mixed-use property located?
The property is located at 2741 Zelda Rd Montgomery, AL.
What is the asking price?
The asking price for this property is $795,000.
What are key features of this property?
This property features: Zoned Commercial; High Traffic Location, great for business; Building and Land Included
