Former Pizza Hut Restaurant
For Sale
$169,900
3450 Demetropolis Road, Mobile, AL 36693
SINGLE_FAMILY - Mobile, AL
Property Size2,275 SF
Lot Size0.34 Acres
Price / SF$74.68
Days on Market368
Property Features for 3450 Demetropolis Road
General Information
Property type
Residential
Property subtype
Retail
Zoning
B3
Parking
20
Parking features
Parking Lot
Window features
Display Window(s)
Interior features
Reception Area, Restrooms
Accessibility
Accessible Approach with Ramp
Lot features
Business Park
View
City
Standard status
Active
APN
3302104001108
Size
2,275 SF
Lot size
0.34 Acres
Taxes and HOA fees
Tax Annual Amount
1939
Utilities
Utilities
Cable Available
Heating system
Central
Cooling system
Central Air
Building Details
Year built
1974
Floors in Building
1
Flooring type
Concrete, Tile - Ceramic, Carpet
Building materials
Brick 4 Sides, Cedar
Roof type
Metal
Listing Agency:
RE/MAX Realty Professionals · RE/MAX International
(251) 661-1471
Listed By:
Eric Coleman · License #000109548-0
(251) 518-9098
Added: Aug 29, 2025
Changed: Aug 3
Last Checked: Aug 31 at 3:06AM
MLS# 7640901
Copyright © 2026 Mobile Area Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This former Pizza Hut restaurant building remains outfitted for restaurant use, including a walk-in cooler/freezer, vent hoods, and other industry-grade kitchen and utility equipment still on site (some kitchen equipment has been sold). The current interior layout includes a manager’s office, break room, two bathrooms, dine-in space, a stock area, two cooking/prep spaces, and an ordering counter. The building may also be adaptable for flex space. The property is offered Sold-As-Is, Where-Is.
The property includes over 100 feet of road frontage in a high-traffic area. It is located about five minutes from Interstates 10 and 65.
Zoned B3, the building sits on a 0.3426-acre lot and totals 2,275 square feet.
The property includes over 100 feet of road frontage in a high-traffic area. It is located about five minutes from Interstates 10 and 65.
Zoned B3, the building sits on a 0.3426-acre lot and totals 2,275 square feet.
Key Highlights
- Former Pizza Hut building built in 1974 with brick exterior construction and metal roof
- Over 100 feet of road frontage in a high‑traffic area
- Restaurant‑ready interior with walk‑in cooler/freezer, vent hoods, and industry‑grade kitchen equipment (some sold); sold as‑is, where‑is
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
$10,686
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
6.29%
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%
$213,720
$213.7K
Cap Rate 7%
$152,657
$152.7K
Cap Rate 9%
$118,733
$118.7K
Market Conditions
NOI Build-Up for 2,275 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
$16.4K $7.20/SF
− Vacancy
−$1.1K −$0.49/SF
EGI
$15.3K $6.71/SF
− OpEx
−$4.6K −$2.01/SF
NOI
$10.7K $4.70/SF
Area
Mobile, AL
Vacancy
6.80%
Lease Rate
$7.20 /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%
$213,720
Cap Rate 7%
$152,657
Cap Rate 9%
$118,733
Alternative Uses
Best Use
Specialty Retail
$491.4K
$430.0K – $573.3K
NOI $34,398 @ 7.0% cap · market cap 20.25%
Second Best
Industrial
$152.7K
$133.6K – $178.1K
NOI $10,686 @ 7.0% cap · market cap 6.29%
Theoretical Best
Office A
$578.2K
$506.0K – $674.6K
NOI $40,476 @ 7.0% cap · market cap 23.82%
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
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
266
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36693, AL
18,914
Population
8,833
Households
2.1
Avg Household Size
43
Median Age
40%
College-Educated
96%
High-School Grad
12.7 sq mi
ZIP Area
1,489
Density / Sq Mi
$69,580
Median Household Income
$41,328
Median Earnings
$1,090
Median Rent
$199,000
Median Home Value
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - Former restaurant building on B3 zoning with extensive road frontage and remaining restaurant kitchen equipment on site.
Where is this conventional restaurant located?
The property is located at 3450 Demetropolis Road Mobile, AL.
What is the asking price?
The asking price for this property is $169,900.
What are key features of this property?
This property features: Former Pizza Hut building built in 1974 with brick exterior construction and metal roof; Over 100 feet of road frontage in a high‑traffic area; Restaurant‑ready interior with walk‑in cooler/freezer, vent hoods, and industry‑grade kitchen equipment (some sold); sold as‑is, where‑is
