Building Details

Year Built 1945

Stories 2

Listing Agency: ARC Realty 280 t***@arcrealtyco.com Show Phone

Listed By: Johnny Montgomery · License #4153 Show Phone

Source: Exitrealty

Added: Jun 19 Changed: Aug 8 Last Checked: Aug 11 at 6:39AM

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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 ARC Realty 280

Investment Insights

Based on property information with market context.

This two-level retail property offers a main level designed for customer traffic, with an open, customer-facing layout. The second level provides additional space that can be used for office needs, storage, or other supplemental uses, supporting flexible day-to-day operations.

Located at 2820 Petticoat Lane in Mountain Brook, AL 35223, the property sits within the Mountain Brook Village retail corridor. The center is described as being surrounded by established businesses, and the property is offered for sale with showings available by appointment.

The configuration is well matched for tenants seeking a storefront presence paired with extra back-of-house or work space. It can support boutique retail or café-style concepts needing a strong customer-facing first floor, while the upstairs area can accommodate an office function, storage, or additional operational space as your use requires.

Key Highlights

• Two‑level storefront in a retail corridor with an open, customer‑facing main level
• Upstairs additional space suited for office, storage, or supplemental use
• Year built: 1945

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

$47,969

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

3.00%

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%

$959,380 $959.4K

Cap Rate 7%

$685,271 $685.3K

Cap Rate 9%

$532,989 $533.0K

Market Conditions

NOI Build-Up for 2,722 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

$72.2K $26.52/SF

− Vacancy

−$8.2K −$3.02/SF

EGI

$64.0K $23.50/SF

− OpEx

−$16.0K −$5.87/SF

NOI

$48.0K $17.62/SF

Area

Jefferson County, AL

Vacancy

11.40%

Lease Rate

$26.52 /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%

$959,380

Cap Rate 7%

$685,271

Cap Rate 9%

$532,989

Alternative Uses

Best Use

Office B

$685.3K

$599.6K – $799.5K (±1% cap)

NOI $47,969 @ 7.0% cap · market cap 3.00%

Second Best

Retail

$543.0K

$475.2K – $633.6K (±1% cap)

NOI $38,013 @ 7.0% cap · market cap 2.38%

Theoretical Best

Office A

$936.4K

$819.4K – $1.09M (±1% cap)

NOI $65,550 @ 7.0% cap · market cap 4.10%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Retail space

Suggested Use

Top Pick Auto Parts Store Electrical Service Plumbing Service (Bike/Boat/Book/etc) Store Barber Shop Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

1,504

Businesses Nearby

Explore this area Business Placement

Demographics for 35223, AL

11,972

Population

4,743

Households

2.5

Avg Household Size

43

Median Age

84%

College-Educated

99%

High-School Grad

8.4 sq mi

ZIP Area

1,425

Density / Sq Mi

$155,079

Median Household Income

$82,862

Median Earnings

$1,372

Median Rent

$744,400

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Retail space - Two-level storefront with an open customer-facing main level and upstairs space suited for office or storage.

Where is this retail space located?

The property is located at 2820 Petticoat Lane Mountain Brook, AL.

What is the asking price?

The asking price for this property is $1,599,780.

What are key features of this property?

This property features: Two‑level storefront in a retail corridor with an open, customer‑facing main level; Upstairs additional space suited for office, storage, or supplemental use; Year built: 1945