Operating Service Garage on
For Sale
$250,000
38023 US Highway 11, Valley Head, AL 35989
COMMERCIAL - Valley Head, AL
Property Size2,400 SF
Lot Size1.20 Acres
Price / SF$104.17
Days on Market102
Property Features for 38023 US Highway 11
General Information
Property type
Commercial Sale
Property subtype
Other
Bathrooms
1
Full bathrooms
1
Rooms
Bathroom 1
Parking features
Parking Lot
Exterior features
Storage
Subdivision
Metes And Bounds
Directions
From Highway 117 Turn North Onto Highway 11. Garage On Left
Standard status
Active
APN
1004190001021.000
Size
2,400 SF
Lot size
1.20 Acres
Utilities
Sewer type
Septic Tank
Water source
Public
Building Details
Year built
2007
Floors in Building
1
Flooring type
Concrete
Roof type
Metal
Additional Structures
Storage
Listing Agency:
Bhhs Southern Routes Realty
(706) 657-2353
Listed By:
Amy Crocker Mullins · License #96723
(423) 290-1821
Added: May 20
Changed: Aug 4
Last Checked: Aug 29 at 11:06AM
MLS# 21867452
Copyright © 2026 ValleyMLS.Com,Inc. 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 is an operating service garage, known as Scotty's Service Center, located 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 with 3 bays, along with a 16x22 office area. Additional features include a 12x60 covered lean-to and an 18x20 gated lean-to for storage in the back. Equipment included with the property consists of 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 box trailer for storage. This property presents a business opportunity for automotive-related ventures.
Key Highlights
- Operating service garage with established business opportunity.
- Essential equipment included: rotary lifts, brake lathe, tire changer, wheel balancer, waste oil heater.
- 2400 sq ft shop space featuring 3 bays, office, and covered lean‑to areas.
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
5.81%
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
NOI $14,515 @ 7.0% cap · market cap 5.81%
Second Best
Industrial
$114.3K
$100.0K – $133.4K
NOI $8,002 @ 7.0% cap · market cap 3.20%
Theoretical Best
Healthcare Medical
$386.6K
$338.3K – $451.1K
NOI $27,065 @ 7.0% cap · market cap 10.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Service bays
Turnkey business
Opportunity
Yes
Highway access
Yes
Paved road access
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
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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 Highway 11 Valley Head, AL.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: Operating service garage with established business opportunity.; Essential equipment included: rotary lifts, brake lathe, tire changer, wheel balancer, waste oil heater.; 2400 sq ft shop space featuring 3 bays, office, and covered lean‑to areas.
