Listing Agency: A Squared Properties, LLC

Listed By: Gusty Gulas Group Show Phone

Source: Gustygulasgroup

Added: Sep 28 Changed: Oct 3 Last Checked: Oct 2 at 7:41PM

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Investment Insights

Based on property information with market context.

The 35-acre property includes a 5,625-square-foot commercial shop with two drive-through bays, four oversized roll-up doors, a 625-square-foot mezzanine office, 3-phase power, and dual HVAC. An attached 1,160-square-foot residence has two bedrooms, two bathrooms, a full kitchen, living area, and laundry. A hay barn and level land complete the property. The site was formerly used as a firehouse.

The property is zoned for Chelsea schools and offers access to Hwy 280 and Hwy 55.

Key Highlights

• 35 acres of level land with a commercial shop and hay barn
• 5,625‑square‑foot shop with two drive‑through bays and four oversized roll‑up doors
• 625‑square‑foot mezzanine office, 3‑phase power, and dual HVAC

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

$64,969

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

7.64%

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%

$1,299,380 $1.3M

Cap Rate 7%

$928,129 $928.1K

Cap Rate 9%

$721,878 $721.9K

Market Conditions

NOI Build-Up for 5,625 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

$118.1K $21.00/SF

− Vacancy

−$14.2K −$2.52/SF

EGI

$104.0K $18.48/SF

− OpEx

−$39.0K −$6.93/SF

NOI

$65.0K $11.55/SF

Area

Shelby County, AL

Vacancy

12.00%

Lease Rate

$21.00 /SF/Yr

Expense Ratio

37.50%

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%

$1,299,380

Cap Rate 7%

$928,129

Cap Rate 9%

$721,878

Alternative Uses

Best Use

Mixed Use

$928.1K

$812.1K – $1.08M (±1% cap)

NOI $64,969 @ 7.0% cap · market cap 7.64%

Second Best

Warehouse

$406.8K

$356.0K – $474.7K (±1% cap)

NOI $28,479 @ 7.0% cap · market cap 3.35%

Theoretical Best

Office A

$1.32M

$1.16M – $1.54M (±1% cap)

NOI $92,421 @ 7.0% cap · market cap 10.87%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Flex space

Suggested Use

Top Pick Plumbing Service Dental Office Storage Facility Big Box & Wholesale Store Carpet & Flooring Store Kitchen & Bath Showroom

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

2

Drive-in doors

Yes

Highway access

Yes

Paved road access

Yes

Utilities to site

Location Intelligence

Trade Area within ½ mile

57

Businesses Nearby

Explore this area Business Placement

Demographics for 35147, AL

5,769

Population

2,467

Households

2.3

Avg Household Size

37

Median Age

41%

College-Educated

91%

High-School Grad

68.7 sq mi

ZIP Area

84

Density / Sq Mi

$85,587

Median Household Income

$44,473

Median Earnings

$1,626

Median Rent

$283,300

Median Home Value

Market

Vacancy Rate% for Industrial in South region

6% 2019

6.5% 2020

4% 2021

3.5% 2022

6% 2023

7.6% 2024

7.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Mixed-use property - An attached two-bedroom residence complements the shop, with additional barn space and acreage for varied property uses.

Where is this mixed-use property located?

The property is located at 3850 Westover Road Sterrett, AL.

What is the asking price?

The asking price for this property is $849,900.

What are key features of this property?

This property features: 35 acres of level land with a commercial shop and hay barn; 5,625‑square‑foot shop with two drive‑through bays and four oversized roll‑up doors; 625‑square‑foot mezzanine office, 3‑phase power, and dual HVAC