Restaurant Building with Prep
New
For Sale
$175,000
5303 1st Ave, Birmingham, AL 35212
Existing restaurant layout includes food preparation space, accessible restrooms, and MU-M zoning.
Property Size1,767 SF
Price / SF$99.04
Days on Market2
Property Features for 5303 1st Ave
General Information
Standard status
Active
Size
1,767 SF
Zoning
MU-M
Additional Details
Highway Access
Yes
Sprinkler System
No
Commercial Hood
Yes
Building Details
Year Built
1993
Listing Agency:
Keller Williams Homewood
Listed By:
Frances Knox · License #30859
(205) 936-8062
Source:
Dardengroupusa
Added: Sep 5
Last Checked: Sep 5 at 3:10PM
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 Keller Williams Homewood
Investment Insights
Based on property information with market context.
The 1,767-square-foot restaurant building at 5303 1st Ave includes a front dining area and a rear food-preparation section with a covered pit and grill/vent equipment. The floor plan also provides two half baths, a utility closet, and a broom closet. Entry and restroom access are handicap compliant. The hood vent has a dedicated sprinkler system, while the property is offered in its current condition.
The sale includes 5305 1st Avenue N. The property is near the Woodlawn Post Office, approximately two blocks from a bus stop and four blocks from the Woodlawn East Transit Center. Access is available from Hwy 280, I-20, and Hwy 78. MU-M zoning is identified by the Birmingham Zoning Office.
The sale includes 5305 1st Avenue N. The property is near the Woodlawn Post Office, approximately two blocks from a bus stop and four blocks from the Woodlawn East Transit Center. Access is available from Hwy 280, I-20, and Hwy 78. MU-M zoning is identified by the Birmingham Zoning Office.
Key Highlights
- 1,767‑square‑foot restaurant building
- Sale includes 5305 1st Avenue N
- Front dining area and rear food‑preparation space
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
$8,122
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
4.64%
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%
$162,440
$162.4K
Cap Rate 7%
$116,029
$116.0K
Cap Rate 9%
$90,244
$90.2K
Market Conditions
NOI Build-Up for 1,767 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
$12.7K $7.20/SF
− Vacancy
−$1.1K −$0.63/SF
EGI
$11.6K $6.57/SF
− OpEx
−$3.5K −$1.97/SF
NOI
$8.1K $4.60/SF
Area
Birmingham, AL
Vacancy
8.80%
Lease Rate
$7.20 /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%
$162,440
Cap Rate 7%
$116,029
Cap Rate 9%
$90,244
Alternative Uses
Best Use
Specialty Retail
$313.5K
$274.3K – $365.8K
NOI $21,946 @ 7.0% cap · market cap 12.54%
Second Best
Industrial
$116.0K
$101.5K – $135.4K
NOI $8,122 @ 7.0% cap · market cap 4.64%
Theoretical Best
Office A
$414.8K
$362.9K – $483.9K
NOI $29,033 @ 7.0% cap · market cap 16.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
580
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35212, AL
11,240
Population
5,537
Households
2
Avg Household Size
34
Median Age
33%
College-Educated
87%
High-School Grad
6.2 sq mi
ZIP Area
1,813
Density / Sq Mi
$34,565
Median Household Income
$37,264
Median Earnings
$754
Median Rent
$210,400
Median Home Value
Market
Vacancy Rate% for Retail in Birmingham, AL
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 - Existing restaurant layout includes food preparation space, accessible restrooms, and MU-M zoning.
Where is this conventional restaurant located?
The property is located at 5303 1st Ave Birmingham, AL.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: 1,767‑square‑foot restaurant building; Sale includes 5305 1st Avenue N; Front dining area and rear food‑preparation space
