Versatile Warehouses and Office
For Sale
Contact for pricing
2804 Avalon Ave, Muscle Shoals, AL
Multiple warehouses and office building with flexible leasing options.
Property Size40,326 SF
Lot Size4.90 Acres
Price / SF$48.98
Days on Market458
Property Features for 2804 Avalon Ave
General Information
Standard status
Active
Size
40,326 SF
Lot size
4.90 Acres
Property subtype
INDUSTRIAL
Listing Agency:
Pounders and Associates, Inc.
(256) 349-7188
Listed By:
Justin Bishop, CCIM · License #000086299
(256) 349-7188
Source:
Moodyscre
Added: May 9, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:58AM
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 Pounders and Associates, Inc.
Investment Insights
Based on property information with market context.
The property features a 3,500 square foot all-brick office building, providing durable construction and functional office space. There is also an 1,800 square foot warehouse suitable for enclosed vehicle and equipment storage, as well as an 11,040 square foot warehouse connected to both the office and smaller warehouse, offering expanded operational capacity. Near the rear property line, a 24,000 square foot warehouse features two drive-level doors, two dock doors with levelers, and a covered loading area. This warehouse is currently leased on a month-to-month basis, offering flexibility for a buyer. If desired, a long-term lease could be negotiated to generate income, or the property could be vacated prior to closing. The property is equipped with 400-amp, 120/208V electrical service, with a 480V service available at the pole. Additionally, a 12,470V line is located on a nearby pole, making an upgrade to higher power capacity a straightforward process for businesses with larger electrical needs. The property size is 40,326 square feet.
Key Highlights
- 24,000 SF warehouse featuring drive‑level and dock doors with levelers, plus a covered loading area; currently leased month‑to‑month for flexibility.
- 11,040 SF warehouse connected to the office and smaller warehouse for expanded operations.
- 3,500 SF all‑brick office building offers durable construction.
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
$160,562
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
8.13%
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%
$3,211,240
$3.2M
Cap Rate 7%
$2,293,743
$2.3M
Cap Rate 9%
$1,784,022
$1.8M
Market Conditions
NOI Build-Up for 40,326 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
$242.0K $6.00/SF
− Vacancy
−$12.6K −$0.31/SF
EGI
$229.4K $5.69/SF
− OpEx
−$68.8K −$1.71/SF
NOI
$160.6K $3.98/SF
Area
Colbert County, AL
Vacancy
5.20%
Lease Rate
$6.00 /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%
$3,211,240
Cap Rate 7%
$2,293,743
Cap Rate 9%
$1,784,022
Alternative Uses
Best Use
Office B
$4.73M
$4.14M – $5.52M
NOI $331,214 @ 7.0% cap · market cap 16.77%
Second Best
Warehouse
$2.79M
$2.44M – $3.25M
NOI $194,968 @ 7.0% cap · market cap 9.87%
Theoretical Best
Office A
$6.44M
$5.63M – $7.51M
NOI $450,774 @ 7.0% cap · market cap 22.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
611
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Muscle Shoals Lock Storage — 2602 S Wilson Dam Rd, Muscle Shoals, AL 35661
- Avalon Avenue Storage — 2712 Avalon Ave, Muscle Shoals, AL 35661
Frequently Asked Questions
What type of property is this?
Warehouse - Multiple warehouses and office building with flexible leasing options.
Where is this warehouse located?
The property is located at 2804 Avalon Ave Muscle Shoals, AL.
What is the asking price?
The asking price for this property is $1,975,000.
What are key features of this property?
This property features: 24,000 SF warehouse featuring drive‑level and dock doors with levelers, plus a covered loading area; currently leased month‑to‑month for flexibility.; 11,040 SF warehouse connected to the office and smaller warehouse for expanded operations.; 3,500 SF all‑brick office building offers durable construction.
