Mixed-Use Restaurant with Living
For Sale
Contact for pricing
5601 Winchester Road, New Market, AL 35761
Restaurant building with kitchen, office areas, and a separate 1-bedroom residence, supported by business and commercial zoning.
Property Size2,035 SF
Price / SF$429.98
Days on Market54
Property Features for 5601 Winchester Road
General Information
Standard status
Active
Size
2,035 SF
Property subtype
Mixed Use, Business for Sale
Zoning
Business, Commercial
Investment Type
Owner/User
Building Details
Year Built
1996
Buildings
2
Tenancy
Single
Listing Agency:
Century 21 Rocket City
(256) 486-8287
Listed By:
Misty and Shawn Guzman · License #110855
Source:
Crexi
Added: Jun 19
Changed: Aug 8
Last Checked: Aug 9 at 11:42AM
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 Century 21 Rocket City
Investment Insights
Based on property information with market context.
This mixed-use property includes a 2,035± SF commercial building constructed with brick and wood. The improvements feature central HVAC, public water, septic, a metal roof, and concrete flooring. Interior configuration includes kitchen space and office area(s), supporting restaurant operations and other commercial uses within the same structure. A separate 1-bedroom/1-bath living space adds flexibility for an owner-operator or live/work setup, with ample paved parking on site.
The property is located at 5601 Winchester Road in New Market, AL, just east of Huntsville. It is described as having excellent visibility along Winchester Road, which supports day-to-day customer access for food service and retail-style concepts.
Zoned for business and commercial use, the site can be considered for a food service tenant or operator, retail, office uses, or multi-tenant concepts, subject to zoning and code requirements. For buyers, the combination of a dedicated commercial kitchen/office layout, on-site parking, and an additional residence provides a practical live/work alternative while still functioning as a standalone commercial asset for leasing or continued operation.
The property is located at 5601 Winchester Road in New Market, AL, just east of Huntsville. It is described as having excellent visibility along Winchester Road, which supports day-to-day customer access for food service and retail-style concepts.
Zoned for business and commercial use, the site can be considered for a food service tenant or operator, retail, office uses, or multi-tenant concepts, subject to zoning and code requirements. For buyers, the combination of a dedicated commercial kitchen/office layout, on-site parking, and an additional residence provides a practical live/work alternative while still functioning as a standalone commercial asset for leasing or continued operation.
Key Highlights
- 2,035± SF commercial building on approx. 0.90 acres, built in 1996
- Mixed‑use setup includes a separate 1‑bed/1‑bath living space plus restaurant/commercial building
- Business and commercial zoning supports multiple uses, including food service, retail, office, or multi‑tenant concepts
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
$28,425
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
3.25%
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%
$568,500
$568.5K
Cap Rate 7%
$406,071
$406.1K
Cap Rate 9%
$315,833
$315.8K
Market Conditions
NOI Build-Up for 2,035 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
$39.1K $19.20/SF
− Vacancy
−$1.2K −$0.58/SF
EGI
$37.9K $18.62/SF
− OpEx
−$9.5K −$4.66/SF
NOI
$28.4K $13.97/SF
Area
Madison County, AL
Vacancy
3.00%
Lease Rate
$19.20 /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%
$568,500
Cap Rate 7%
$406,071
Cap Rate 9%
$315,833
Alternative Uses
Best Use
Specialty Retail
$406.1K
$355.3K – $473.8K
NOI $28,425 @ 7.0% cap · market cap 3.25%
Second Best
Office B
$371.4K
$325.0K – $433.3K
NOI $25,998 @ 7.0% cap · market cap 2.97%
Theoretical Best
Office A
$529.9K
$463.7K – $618.2K
NOI $37,094 @ 7.0% cap · market cap 4.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
64
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35761, AL
12,561
Population
5,522
Households
2.3
Avg Household Size
40
Median Age
30%
College-Educated
90%
High-School Grad
116.6 sq mi
ZIP Area
108
Density / Sq Mi
$82,321
Median Household Income
$45,892
Median Earnings
$975
Median Rent
$215,300
Median Home Value
Market
Vacancy Rate% for Office 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 - Restaurant building with kitchen, office areas, and a separate 1-bedroom residence, supported by business and commercial zoning.
Where is this conventional restaurant located?
The property is located at 5601 Winchester Road New Market, AL.
What is the asking price?
The asking price for this property is $875,000.
What are key features of this property?
This property features: 2,035± SF commercial building on approx. 0.90 acres, built in 1996; Mixed‑use setup includes a separate 1‑bed/1‑bath living space plus restaurant/commercial building; Business and commercial zoning supports multiple uses, including food service, retail, office, or multi‑tenant concepts
