Single-Tenant NNN
For Sale
Contact for pricing
3225 Saint Stephens Rd, Mobile, AL 36612
20-year absolute NNN lease began December 2015, with 7.5% rent escalations every five years.
Property Size2,476 SF
Price / SF$484.65
Days on Market104
Property Features for 3225 Saint Stephens Rd
General Information
Standard status
Active
Size
2,476 SF
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$96,136
Additional Details
Highway Access
Yes
Building Details
Year Built
2015
Tenancy
Single
Listing Agency:
Texas Triangle Commercial Real Estate
Listed By:
Anthony Lagred · License #TX 664432-B
(210) 216-8925
Source:
Crexi
Added: Jun 8
Changed: Sep 8
Last Checked: Sep 19 at 6:36AM
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 Texas Triangle Commercial Real Estate
Investment Insights
Based on property information with market context.
This single-tenant NNN restaurant is offered with an absolute NNN lease term of 20 years that commenced in December 2015. The lease includes 7.5% rent escalations every five years. The property is structured for long-term, lease-backed ownership with a tenant obligation typical of NNN setups.
The site is positioned less than one mile from I-65 and is surrounded by national and regional retailers, including Walmart, Dollar General, CVS, Aaron’s, and O’Reilly Auto Parts, along with other tenants in the area. This retail mix supports an established commercial corridor.
For investors or buyers seeking a single-tenant, national-brand-style leasing profile, the absolute NNN structure and scheduled rent increases are key underwriting considerations. The property’s location near I-65 and the concentration of major retailers provide practical everyday commercial context for an NNN restaurant asset.
The site is positioned less than one mile from I-65 and is surrounded by national and regional retailers, including Walmart, Dollar General, CVS, Aaron’s, and O’Reilly Auto Parts, along with other tenants in the area. This retail mix supports an established commercial corridor.
For investors or buyers seeking a single-tenant, national-brand-style leasing profile, the absolute NNN structure and scheduled rent increases are key underwriting considerations. The property’s location near I-65 and the concentration of major retailers provide practical everyday commercial context for an NNN restaurant asset.
Key Highlights
- 2015‑built single‑tenant retail property
- 20‑year absolute NNN lease commenced December 2015
- 7.5% rent escalations every five years
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
$37,437
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
3.12%
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%
$748,740
$748.7K
Cap Rate 7%
$534,814
$534.8K
Cap Rate 9%
$415,967
$416.0K
Market Conditions
NOI Build-Up for 2,476 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
$52.0K $21.00/SF
− Vacancy
−$2.1K −$0.84/SF
EGI
$49.9K $20.16/SF
− OpEx
−$12.5K −$5.04/SF
NOI
$37.4K $15.12/SF
Area
Mobile, AL
Vacancy
4.00%
Lease Rate
$21.00 /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%
$748,740
Cap Rate 7%
$534,814
Cap Rate 9%
$415,967
Alternative Uses
Best Use
Specialty Retail
$534.8K
$468.0K – $624.0K
NOI $37,437 @ 7.0% cap · market cap 3.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$629.3K
$550.7K – $734.2K
NOI $44,052 @ 7.0% cap · market cap 3.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
239
Businesses Nearby
Explore this area
Business Placement
Demographics for 36612, AL
4,013
Population
1,753
Households
2.3
Avg Household Size
39
Median Age
13%
College-Educated
80%
High-School Grad
3.0 sq mi
ZIP Area
1,338
Density / Sq Mi
$36,777
Median Household Income
$29,167
Median Earnings
$800
Median Rent
$79,500
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
NNN property - 20-year absolute NNN lease began December 2015, with 7.5% rent escalations every five years.
Where is this nnn property located?
The property is located at 3225 Saint Stephens Rd Mobile, AL.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: 2015‑built single‑tenant retail property; 20‑year absolute NNN lease commenced December 2015; 7.5% rent escalations every five years
