Building Details

Building Size 1,500 SF

Year Built 1927

Year Renovated 2025

Buildings 1

Listed By: Tillman Hurst · License #AL #000163336-0 Show Phone

Source: Gatewaycommercial

Added: Sep 13 Last Checked: Sep 13 at 2:40PM

Report an Issue

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 Tillman Hurst

Investment Insights

Based on property information with market context.

This coffee shop property at 46 Railroad Ave in Falkville, Alabama, includes a 1,500-square-foot building constructed in 1927 and renovated in 2025. The sale also includes the Cross Ties Coffee Company business, along with associated equipment, furniture, fixtures, and branding.

The property includes a vacant lot located south of the building, providing an additional component alongside the commercial structure. The site is zoned M-1. The offering combines the coffee business, its physical improvements, and the included business assets in one transaction.

Key Highlights

• 1,500‑square‑foot coffee shop building
• Renovated in 2025; originally built in 1927
• Includes the Cross Ties Coffee Company business

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

$16,734

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

5.58%

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%

$334,680 $334.7K

Cap Rate 7%

$239,057 $239.1K

Cap Rate 9%

$185,933 $185.9K

Market Conditions

NOI Build-Up for 1,500 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

$23.9K $15.96/SF

− Vacancy

−$1.6K −$1.09/SF

EGI

$22.3K $14.87/SF

− OpEx

−$5.6K −$3.72/SF

NOI

$16.7K $11.16/SF

Area

Morgan County, AL

Vacancy

6.80%

Lease Rate

$15.96 /SF/Yr

Expense Ratio

25.00%

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%

$334,680

Cap Rate 7%

$239,057

Cap Rate 9%

$185,933

Alternative Uses

Best Use

Specialty Retail

$239.1K

$209.2K – $278.9K (±1% cap)

NOI $16,734 @ 7.0% cap · market cap 5.58%

Second Best

Retail

$177.2K

$155.1K – $206.8K (±1% cap)

NOI $12,405 @ 7.0% cap · market cap 4.14%

Theoretical Best

Office A

$312.1K

$273.1K – $364.1K (±1% cap)

NOI $21,845 @ 7.0% cap · market cap 7.28%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Unlock full access to Insights Subscribe to Realmo Intelligence

Open Analytics

Current Use

Cross Ties Coffee ... Cafe & Coffee Shop

Suggested Use

Top Pick Building Supply Parking Lot & Garage Real Estate Agency Auto Parts Store Plumbing Service Storage Facility

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

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

90

Businesses Nearby

1k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Cadence Bank Shops & Services

1,387 visits/mo 0.3 miles

Demographics for 35622, AL

7,257

Population

2,803

Households

2.6

Avg Household Size

43

Median Age

12%

College-Educated

88%

High-School Grad

96.4 sq mi

ZIP Area

75

Density / Sq Mi

$53,354

Median Household Income

$37,182

Median Earnings

$880

Median Rent

$174,400

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

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

What type of property is this? Where is this coffee shops located? What is the asking price? Find similar properties What are key features of this property?

Similar Off Market Nearby

• Cross Ties Coffee Company — 46 Railroad Ave, Falkville, AL 35622

Frequently Asked Questions

What type of property is this?

Coffee shop - Includes the coffee company business, equipment, furnishings, fixtures, and branding.

Where is this coffee shop located?

The property is located at 46 Railroad Ave Falkville, AL.

What is the asking price?

The asking price for this property is $300,000.

What are key features of this property?

This property features: 1,500‑square‑foot coffee shop building; Renovated in 2025; originally built in 1927; Includes the Cross Ties Coffee Company business