Restaurant with Fully Equipped
For Sale
$185,000
5304 20th Ave, Valley, AL 36854
Formerly residential, this restaurant property features a fully equipped commercial kitchen, dining area, screened porch, and storage space.
Property Size1,518 SF
Price / SF$121.87
Days on Market84
Property Features for 5304 20th Ave
General Information
Standard status
Active
Size
1,518 SF
Listing Agency:
FIRST REALTY
(334) 887-3425
Listed By:
KELLY METIVIER
(334) 319-6288
Source:
Exprealty
Added: Jun 16
Changed: Aug 20
Last Checked: Sep 6 at 3:28PM
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 FIRST REALTY
Investment Insights
Based on property information with market context.
This property began as a formally residential space and has been transformed into a restaurant. The interior includes a fully equipped commercial kitchen and an established dining area, along with a screened-in porch and generous storage space. The layout is designed to support food service operations and other compatible commercial concepts.
With the existing kitchen and dining configuration, the property offers flexibility for an operator seeking a turn-key foundation for a restaurant or related food business.
Additional amenities include the screened porch and ample storage, which can support day-to-day service and back-of-house needs.
With the existing kitchen and dining configuration, the property offers flexibility for an operator seeking a turn-key foundation for a restaurant or related food business.
Additional amenities include the screened porch and ample storage, which can support day-to-day service and back-of-house needs.
Key Highlights
- Formerly residential property converted to a Cajun restaurant
- Fully equipped commercial kitchen for restaurant and food‑related concepts
- Established dining area for guest seating
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
$16,753
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
9.06%
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%
$335,060
$335.1K
Cap Rate 7%
$239,329
$239.3K
Cap Rate 9%
$186,144
$186.1K
Market Conditions
NOI Build-Up for 1,518 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
$24.2K $15.96/SF
− Vacancy
−$1.9K −$1.24/SF
EGI
$22.3K $14.72/SF
− OpEx
−$5.6K −$3.68/SF
NOI
$16.8K $11.04/SF
Area
Lee County, AL
Vacancy
7.80%
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%
$335,060
Cap Rate 7%
$239,329
Cap Rate 9%
$186,144
Alternative Uses
Best Use
Specialty Retail
$239.3K
$209.4K – $279.2K
NOI $16,753 @ 7.0% cap · market cap 9.06%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$370.2K
$324.0K – $431.9K
NOI $25,916 @ 7.0% cap · market cap 14.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
231
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 36854, AL
16,399
Population
7,761
Households
2.1
Avg Household Size
41
Median Age
19%
College-Educated
88%
High-School Grad
60.5 sq mi
ZIP Area
271
Density / Sq Mi
$60,385
Median Household Income
$37,589
Median Earnings
$1,021
Median Rent
$146,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Formerly residential, this restaurant property features a fully equipped commercial kitchen, dining area, screened porch, and storage space.
Where is this conventional restaurant located?
The property is located at 5304 20th Ave Valley, AL.
What is the asking price?
The asking price for this property is $185,000.
What are key features of this property?
This property features: Formerly residential property converted to a Cajun restaurant; Fully equipped commercial kitchen for restaurant and food‑related concepts; Established dining area for guest seating
