Building Details

Year Built 2026

Buildings 1

Tenancy Single

Listing Agency: LHT Commercial Real Estate, LLC a***@yahoo.com Show Phone

Listed By: Jonathan Broadway · License #AL 82483

Source: Crexi

Added: Apr 28 Changed: Aug 29 Last Checked: Aug 29 at 5:53PM

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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 LHT Commercial Real Estate, LLC

Investment Insights

Based on property information with market context.

This 10,640-square-foot Dollar General PLUS store is a newly constructed retail property in Somerville, Alabama. Completed in 2026, the store is scheduled to open on April 2, 2026, and is positioned along Highway 36 East.

The property is subject to a 15-year initial NNN lease, followed by five additional five-year options. Contractual rent increases are set at 5% every five years. The site is located at 6358 Highway 36 East in the northern part of Alabama, near Huntsville.

Key Highlights

• 10,640‑square‑foot Dollar General PLUS store
• New construction completed in 2026
• Scheduled store opening on April 2, 2026

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

$118,700

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

6.34%

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%

$2,374,000 $2.4M

Cap Rate 7%

$1,695,714 $1.7M

Cap Rate 9%

$1,318,889 $1.3M

Market Conditions

NOI Build-Up for 10,640 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

$169.8K $15.96/SF

− Vacancy

−$11.5K −$1.09/SF

EGI

$158.3K $14.87/SF

− OpEx

−$39.6K −$3.72/SF

NOI

$118.7K $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%

$2,374,000

Cap Rate 7%

$1,695,714

Cap Rate 9%

$1,318,889

Alternative Uses

Best Use

Specialty Retail

$1.70M

$1.48M – $1.98M (±1% cap)

NOI $118,700 @ 7.0% cap · market cap 6.34%

Second Best

Retail

$1.26M

$1.10M – $1.47M (±1% cap)

NOI $87,991 @ 7.0% cap · market cap 4.70%

Theoretical Best

Office A

$2.21M

$1.94M – $2.58M (±1% cap)

NOI $154,952 @ 7.0% cap · market cap 8.27%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Grocery and convenience stores

Suggested Use

Top Pick Building Supply HVAC Service Big Box & Wholesale Store Grocery & Convenience Store Pet Store Auto Repair Shop

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

31

Businesses Nearby

Explore this area Business Placement

Demographics for 35670, AL

7,780

Population

3,239

Households

2.4

Avg Household Size

43

Median Age

19%

College-Educated

80%

High-School Grad

98.6 sq mi

ZIP Area

79

Density / Sq Mi

$48,531

Median Household Income

$29,500

Median Earnings

$765

Median Rent

$165,200

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

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Frequently Asked Questions

What type of property is this?

NNN property - Newly built retail store supported by a long-term NNN lease structure.

Where is this nnn property located?

The property is located at 6358 Highway 36 East Somerville, AL.

What is the asking price?

The asking price for this property is $1,873,235.

What are key features of this property?

This property features: 10,640‑square‑foot Dollar General PLUS store; New construction completed in 2026; Scheduled store opening on April 2, 2026