Net Lease Industrial Manufacturing
For Sale
Contact for pricing
3500 27th Avenue North, Birmingham, AL 35207
NNN-leased steel fabrication and distribution facility with recently replaced roof covered by a 20-year warranty.
Property Size99,574 SF
Lot Size5.90 Acres
Price / SF$64.94
Days on Market96
Property Features for 3500 27th Avenue North
General Information
Standard status
Active
Size
99,574 SF
Lot size
5.90 Acres
Property subtype
Industrial
Occupancy
100%
Investment Type
Net Lease
Net Operating Income
$485,000
Building Details
Year Built
2004
Tenancy
Single
Listing Agency:
Stream Capital Partners
Listed By:
Phil DiGennaro · License #CT RES.0804114
(203) 610-1541
Source:
Crexi
Added: Jun 2
Changed: Aug 11
Last Checked: Aug 31 at 11:17PM
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 Stream Capital Partners
Investment Insights
Based on property information with market context.
The offering is a net lease industrial manufacturing facility leased to CMC Steel US, LLC. The property supports rebar fabrication and distribution functions, including cutting, bending, and delivery of reinforcing steel, and is purpose-built for heavy industrial operations. The facility totals approximately 99,574 square feet on about 5.9 acres, with the landlord’s responsibility limited to the roof, which was recently replaced and is covered by a 20-year warranty.
Located at 3500 27th Avenue North in Birmingham, Alabama, the asset is structured as a triple net (NNN) lease. Under the lease terms, the tenant is responsible for operating expenses, taxes, utilities, maintenance, repair, and replacement of the premises. The lease also includes 3.0% annual rent escalations over the remaining term.
For investors seeking an in-place industrial cash-flow profile, the property is leased to a wholly owned subsidiary of Commercial Metals Company (NYSE: CMC). CMC is a vertically integrated producer and fabricator of steel and metal products, including reinforcing steel and related offerings. The facility’s specialized manufacturing and distribution use is designed to support ongoing fabrication operations, with the NNN structure shifting ongoing cost responsibilities to the tenant.
Located at 3500 27th Avenue North in Birmingham, Alabama, the asset is structured as a triple net (NNN) lease. Under the lease terms, the tenant is responsible for operating expenses, taxes, utilities, maintenance, repair, and replacement of the premises. The lease also includes 3.0% annual rent escalations over the remaining term.
For investors seeking an in-place industrial cash-flow profile, the property is leased to a wholly owned subsidiary of Commercial Metals Company (NYSE: CMC). CMC is a vertically integrated producer and fabricator of steel and metal products, including reinforcing steel and related offerings. The facility’s specialized manufacturing and distribution use is designed to support ongoing fabrication operations, with the NNN structure shifting ongoing cost responsibilities to the tenant.
Key Highlights
- 99,574 SF industrial manufacturing facility built in 2004 on approx. 5.9 acres at 3500 27th Avenue, Birmingham, AL.
- Purpose‑built for reinforcing steel (rebar) fabrication and distribution, supporting cutting, bending, and delivery operations.
- Triple net (NNN) lease structure: tenant responsible for operating expenses, taxes, utilities, maintenance, repair, and replacement; landlord responsible only for the roof.
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
$555,766
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
8.59%
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%
$11,115,320
$11.1M
Cap Rate 7%
$7,939,514
$7.9M
Cap Rate 9%
$6,175,178
$6.2M
Market Conditions
NOI Build-Up for 99,574 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
$716.9K $7.20/SF
− Vacancy
−$63.1K −$0.63/SF
EGI
$653.8K $6.57/SF
− OpEx
−$98.1K −$0.98/SF
NOI
$555.8K $5.58/SF
Area
Birmingham, AL
Vacancy
8.80%
Lease Rate
$7.20 /SF/Yr
Expense Ratio
15.00%
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%
$11,115,320
Cap Rate 7%
$7,939,514
Cap Rate 9%
$6,175,178
Alternative Uses
Best Use
Warehouse
$7.94M
$6.95M – $9.26M
NOI $555,766 @ 7.0% cap · market cap 8.59%
Second Best
Industrial
$6.54M
$5.72M – $7.63M
NOI $457,690 @ 7.0% cap · market cap 7.08%
Theoretical Best
Office A
$23.37M
$20.45M – $27.27M
NOI $1,636,041 @ 7.0% cap · market cap 25.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
164
Businesses Nearby
Explore this area
Business Placement
Demographics for 35207, AL
7,911
Population
3,746
Households
2.1
Avg Household Size
39
Median Age
13%
College-Educated
80%
High-School Grad
11.6 sq mi
ZIP Area
682
Density / Sq Mi
$28,672
Median Household Income
$27,511
Median Earnings
$775
Median Rent
$74,800
Median Home Value
Market
Vacancy Rate% for Industrial in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - NNN-leased steel fabrication and distribution facility with recently replaced roof covered by a 20-year warranty.
Where is this manufacturing property located?
The property is located at 3500 27th Avenue North Birmingham, AL.
What is the asking price?
The asking price for this property is $6,466,666.
What are key features of this property?
This property features: 99,574 SF industrial manufacturing facility built in 2004 on approx. 5.9 acres at 3500 27th Avenue, Birmingham, AL.; Purpose‑built for reinforcing steel (rebar) fabrication and distribution, supporting cutting, bending, and delivery operations.; Triple net (NNN) lease structure: tenant responsible for operating expenses, taxes, utilities, maintenance, repair, and replacement; landlord responsible only for the roof.
