Corner Take-Out
For Sale
$149,900
705 Holcombe Avenue, Mobile, AL 36606
Includes a functional grill hood, refrigeration equipment, and on-site parking.
Property Size700 SF
Price / SF$214.14
Days on Market9
Property Features for 705 Holcombe Avenue
General Information
Standard status
Active
Size
700 SF
Property subtype
Retail
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Taxes and HOA fees
Annual Taxes
$772
Amenities
Central Air, Ceiling Fan(s)
3
Corner Lot.
10 Parking Spaces.
City
Corner, City Road, Asphalt.
Building Details
Stories
1
Listing Agency:
RE/MAX Gateway
(251) 423-9297
Listed By:
Greg Cawthon · License #67808
(251) 423-9297
Source:
Xome
Added: Aug 15
Changed: Aug 22
Last Checked: Aug 22 at 4:25AM
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 RE/MAX Gateway
Investment Insights
Based on property information with market context.
This restaurant property includes a functional commercial grill vent hood system and refrigeration equipment, along with central air and ceiling fans. The site is configured for a take-out restaurant use and includes the equipment currently located at the property.
Positioned at 705 Holcombe Avenue in Mobile, the property occupies a corner lot with access from an asphalt city road. On-site parking is provided, and the sale includes Lots 1 and 2, Block 22, Bon-Air Estates.
Positioned at 705 Holcombe Avenue in Mobile, the property occupies a corner lot with access from an asphalt city road. On-site parking is provided, and the sale includes Lots 1 and 2, Block 22, Bon-Air Estates.
Key Highlights
- Functional commercial grill vent hood system
- Refrigeration equipment included
- Central air and ceiling fans
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
$10,584
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
7.06%
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%
$211,680
$211.7K
Cap Rate 7%
$151,200
$151.2K
Cap Rate 9%
$117,600
$117.6K
Market Conditions
NOI Build-Up for 700 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
$14.7K $21.00/SF
− Vacancy
−$588 −$0.84/SF
EGI
$14.1K $20.16/SF
− OpEx
−$3.5K −$5.04/SF
NOI
$10.6K $15.12/SF
Area
Mobile, AL
Vacancy
4.00%
Lease Rate
$21.00 /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%
$211,680
Cap Rate 7%
$151,200
Cap Rate 9%
$117,600
Alternative Uses
Best Use
Specialty Retail
$151.2K
$132.3K – $176.4K
NOI $10,584 @ 7.0% cap · market cap 7.06%
Second Best
Industrial
$47.0K
$41.1K – $54.8K
NOI $3,288 @ 7.0% cap · market cap 2.19%
Theoretical Best
Office A
$177.9K
$155.7K – $207.6K
NOI $12,454 @ 7.0% cap · market cap 8.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
577
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 36606, AL
19,042
Population
9,129
Households
2.1
Avg Household Size
35
Median Age
29%
College-Educated
89%
High-School Grad
6.8 sq mi
ZIP Area
2,800
Density / Sq Mi
$49,561
Median Household Income
$37,094
Median Earnings
$938
Median Rent
$141,300
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 - Includes a functional grill hood, refrigeration equipment, and on-site parking.
Where is this conventional restaurant located?
The property is located at 705 Holcombe Avenue Mobile, AL.
What is the asking price?
The asking price for this property is $149,900.
What are key features of this property?
This property features: Functional commercial grill vent hood system; Refrigeration equipment included; Central air and ceiling fans
