Two-Story Auto Shop
For Sale
$350,000
420 Dauphin Island Parkway, Mobile, AL 36606
COMMERCIAL - Mobile, AL
Property Size1,490 SF
Lot Size0.13 Acres
Price / SF$234.90
Days on Market321
Property Features for 420 Dauphin Island Parkway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
B3
Parking
50
Parking features
Parking Lot
View
City
Standard status
Active
APN
2910282002010
Size
1,490 SF
Lot size
0.13 Acres
Taxes and HOA fees
Tax Annual Amount
886
Utilities
Utilities
Water Available
Sewer type
Public Sewer
Water source
Public
Building Details
Floors in Building
2
Building materials
Frame
Roof type
Asphalt
Listing Agency:
Roberts Brothers West · Berkshire Hathaway HomeServices
(251) 661-4660
Listed By:
Sandra Frost
(251) 604-6514
Added: Oct 3, 2025
Changed: Aug 11
Last Checked: Aug 19 at 6:06PM
MLS# 7659505
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 B3-zoned auto shop property includes two commercial lots and a 1,490-square-foot, two-story frame building. The structure needs repairs and offers a configuration that could accommodate office, service, or retail use. A parking lot serves the site, with water available through the public system and public sewer in place. The asphalt roof is an existing building feature.
The property is positioned across from a post office in Mobile’s Loop area, approximately 2 minutes from downtown and 3 minutes from Interstate 10. Its location provides access to established civic and transportation points, while the B3 designation supports a range of commercial applications identified for the site, including automotive services and convenience-oriented operations.
The property is positioned across from a post office in Mobile’s Loop area, approximately 2 minutes from downtown and 3 minutes from Interstate 10. Its location provides access to established civic and transportation points, while the B3 designation supports a range of commercial applications identified for the site, including automotive services and convenience-oriented operations.
Key Highlights
- 1,490‑square‑foot, two‑story frame building requiring repairs
- Two commercial lots totaling 0.1335 acres
- B3 zoning
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
$19,722
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
5.63%
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%
$394,440
$394.4K
Cap Rate 7%
$281,743
$281.7K
Cap Rate 9%
$219,133
$219.1K
Market Conditions
NOI Build-Up for 1,490 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
$29.5K $19.80/SF
− Vacancy
−$1.3K −$0.89/SF
EGI
$28.2K $18.91/SF
− OpEx
−$8.5K −$5.67/SF
NOI
$19.7K $13.24/SF
Area
Mobile, AL
Vacancy
4.50%
Lease Rate
$19.80 /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%
$394,440
Cap Rate 7%
$281,743
Cap Rate 9%
$219,133
Alternative Uses
Best Use
Retail
$281.7K
$246.5K – $328.7K
NOI $19,722 @ 7.0% cap · market cap 5.63%
Second Best
Industrial
$100.0K
$87.5K – $116.7K
NOI $6,999 @ 7.0% cap · market cap 2.00%
Theoretical Best
Office A
$378.7K
$331.4K – $441.8K
NOI $26,510 @ 7.0% cap · market cap 7.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
823
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36606, AL
19,042
Population
9,129
Households
2.1
Avg Household Size
35
Median Age
29%
College-Educated
89%
High-School Grad
6.8 sq mi
ZIP Area
2,800
Density / Sq Mi
$49,561
Median Household Income
$37,094
Median Earnings
$938
Median Rent
$141,300
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.
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- Showtime Auto Painting LLC — 777 Holcombe Ave, Mobile, AL 36606
- Tj's Auto Repair — 2004 Halls Mill Rd, Mobile, AL 36606
Frequently Asked Questions
What type of property is this?
Auto shop - B3 zoning, on-site parking, and proximity to downtown support automotive, service, and retail-oriented operations.
Where is this auto shop located?
The property is located at 420 Dauphin Island Parkway Mobile, AL.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: 1,490‑square‑foot, two‑story frame building requiring repairs; Two commercial lots totaling 0.1335 acres; B3 zoning
