Building Details

Year Built 2007

Buildings 1

Stories 1

Listing Agency: BHHS Southern Routes Realty

Listed By: Vickie McBryar · License #GA 203988

Source: Crexi

Added: Mar 20, 2025 Changed: Aug 8 Last Checked: Aug 28 at 2:57PM

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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 BHHS Southern Routes Realty

Investment Insights

Based on property information with market context.

This is an open and operating service garage, referred to as Scotty's Service Center, situated in Hammondville. The property includes 1.2 acres with 250 feet of road frontage on US Highway 11. The building provides 2400 square feet of shop space featuring 3 bays, along with a 16x22 office area. Additional storage is available with a 12x60 covered lean-to, and an 18x20 gated lean-to located in the back. The sale includes equipment such as a 4-post rotary lift, two 2-post rotary lifts, a Hunter brake lathe, a Hunter tire changer, a Coats wheel balancer, a Porta cool fan, an Energy Logic Waste Oil Heater, and a 50 ft enclosed box trailer for scrap tire storage. This property presents a business opportunity.

Key Highlights

• Operating service garage with existing business
• Includes valuable equipment: Rotary lifts, Hunter brake lathe, tire changer, wheel balancer, and waste oil heater
• 2400 sq ft of shop space with 3 bays

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

$14,515

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

5.69%

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%

$290,300 $290.3K

Cap Rate 7%

$207,357 $207.4K

Cap Rate 9%

$161,278 $161.3K

Market Conditions

NOI Build-Up for 2,400 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

$23.0K $9.60/SF

− Vacancy

−$2.3K −$0.96/SF

EGI

$20.7K $8.64/SF

− OpEx

−$6.2K −$2.59/SF

NOI

$14.5K $6.05/SF

Area

DeKalb County, AL

Vacancy

10.00%

Lease Rate

$9.60 /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%

$290,300

Cap Rate 7%

$207,357

Cap Rate 9%

$161,278

Alternative Uses

Best Use

Retail

$207.4K

$181.4K – $241.9K (±1% cap)

NOI $14,515 @ 7.0% cap · market cap 5.69%

Second Best

Industrial

$114.3K

$100.0K – $133.4K (±1% cap)

NOI $8,002 @ 7.0% cap · market cap 3.14%

Theoretical Best

Healthcare Medical

$386.6K

$338.3K – $451.1K (±1% cap)

NOI $27,065 @ 7.0% cap · market cap 10.62%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Auto shops

Suggested Use

Top Pick Auto Repair Shop Electrical Service Plumbing Service

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

16

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 35989, AL

3,265

Population

1,559

Households

2.1

Avg Household Size

43

Median Age

12%

College-Educated

75%

High-School Grad

57.2 sq mi

ZIP Area

57

Density / Sq Mi

$43,750

Median Household Income

$31,096

Median Earnings

$730

Median Rent

$89,500

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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Similar Off Market Nearby

• Scotty's 2 Service Center — 38013 US-11, Valley Head, AL 35989

Frequently Asked Questions

What type of property is this?

Auto shop - Operating service garage with equipment on 1.2 acres.

Where is this auto shop located?

The property is located at 38023 US-11 Hammondville, AL.

What is the asking price?

The asking price for this property is $254,900.

What are key features of this property?

This property features: Operating service garage with existing business; Includes valuable equipment: Rotary lifts, Hunter brake lathe, tire changer, wheel balancer, and waste oil heater; 2400 sq ft of shop space with 3 bays