Colbert County Commercial Building For
For Sale
$975,000
Pending
4840 Hatch Blvd, Sheffield, AL 35660
Commercial building with restaurant potential in high-traffic area.
Property Size10,031 SF
Days on Market161
Property Features for 4840 Hatch Blvd
General Information
Standard status
Pending
Size
10,031 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$3,289
Building Details
Year Built
1982
Listing Agency:
EXIT Realty Shoals
Listed By:
Kellie G Bowling · License #105919
(256) 740-1985
Source:
Exitrealty
Added: Mar 31
Changed: Sep 6
Last Checked: Sep 7 at 6:33AM
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 EXIT Realty Shoals
Investment Insights
Based on property information with market context.
This commercial building, previously used as a restaurant, offers potential for various business options. The property spans over 10,000 square feet and includes indoor and outdoor stages, a dance floor, patio bars, an extended interior bar space, and a restaurant eating area. It features an indoor sprinkler system with up-to-date fire protection and a transferrable security system with ADT. The building also provides ample storage and kitchen space. Since 2023, approximately $300,000 has been invested in extensive renovations. These renovations, completed as of May 2023, include new plumbing, electrical systems, lighting, roofing, sprinkler system, ceilings, and HVAC ductwork. The property is equipped with two HVAC units that are two years old and two new tankless hot water heaters installed one year ago. Situated in a high-traffic area of Colbert County, the building has a capacity of over 400 people and approximately 100 parking spaces. The seller is open to considering a lease or owner financing.
Key Highlights
- Extensive Renovations: Approximately $300,000 spent since 2023, including new plumbing, electrical, lighting, roof, sprinkler system, ceilings, and HVAC ductwork.
- High Capacity & Ample Parking: Accommodates over 400 people with approximately 100 parking spaces.
- Prime Location: Situated in a high traffic area of Colbert County.
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
$72,133
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
7.40%
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%
$1,442,660
$1.4M
Cap Rate 7%
$1,030,471
$1.0M
Cap Rate 9%
$801,478
$801.5K
Market Conditions
NOI Build-Up for 10,031 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
$102.3K $10.20/SF
− Vacancy
−$6.1K −$0.61/SF
EGI
$96.2K $9.59/SF
− OpEx
−$24.0K −$2.40/SF
NOI
$72.1K $7.19/SF
Area
Colbert County, AL
Vacancy
6.00%
Lease Rate
$10.20 /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%
$1,442,660
Cap Rate 7%
$1,030,471
Cap Rate 9%
$801,478
Alternative Uses
Best Use
Specialty Retail
$1.03M
$901.7K – $1.20M
NOI $72,133 @ 7.0% cap · market cap 7.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.60M
$1.40M – $1.87M
NOI $112,129 @ 7.0% cap · market cap 11.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
275
Businesses Nearby
17k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 65%
Hotels & Casinos 21%
Dining 14%
Shell
Shops & Services
10,526 visits/mo
0.2 miles
Clarion Inn Sheffield Muscle Shoals
Hotels & Casinos
3,544 visits/mo
0.0 miles
Papa John's Pizza
Dining
2,315 visits/mo
0.3 miles
TitleMax Title Loans
Shops & Services
425 visits/mo
0.3 miles
Demographics for 35660, AL
9,434
Population
5,139
Households
1.8
Avg Household Size
40
Median Age
16%
College-Educated
88%
High-School Grad
6.2 sq mi
ZIP Area
1,522
Density / Sq Mi
$42,510
Median Household Income
$31,302
Median Earnings
$850
Median Rent
$129,000
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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Commercial building with restaurant potential in high-traffic area.
Where is this conventional restaurant located?
The property is located at 4840 Hatch Blvd Sheffield, AL.
What is the asking price?
The asking price for this property is $975,000.
What are key features of this property?
This property features: Extensive Renovations: Approximately $300,000 spent since 2023, including new plumbing, electrical, lighting, roof, sprinkler system, ceilings, and HVAC ductwork.; High Capacity & Ample Parking: Accommodates over 400 people with approximately 100 parking spaces.; Prime Location: Situated in a high traffic area of Colbert County.
