Retail Plaza on Atlanta
For Sale
Contact for pricing
Pending
7730 Atlanta Hwy, Montgomery, AL 36117
Retail property in Montgomery's east retail submarket with high visibility.
Property Size27,250 SF
Days on Market164
Property Features for 7730 Atlanta Hwy
General Information
Standard status
Pending
Size
27,250 SF
Class
B
Property subtype
Retail
Zoning
PUD
Occupancy
85%
Lease Type
Net
Investment Type
Value Add
Building Details
Year Built
2003
Buildings
1
Stories
1
Units
11
Tenancy
Multi
Listing Agency:
Franklin Street
Listed By:
Justin Sturdivant · License #TN 333989
Source:
Crexi
Added: Mar 23
Changed: Aug 8
Last Checked: Jul 24 at 9:34AM
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 Franklin Street
Investment Insights
Based on property information with market context.
Somerset Plaza is located along Atlanta Highway, a primary retail corridor in Montgomery, with approximately 22,436 vehicles per day. The property benefits from strong visibility within the city’s east retail submarket. This corridor connects residential neighborhoods with shopping centers, dining, and service businesses. The surrounding area has nearly 90,000 residents within a five-mile radius and average household incomes exceeding $93,000. East Montgomery is a desirable residential area with quality housing and consistent population density, close to retail conveniences. Montgomery’s economy is supported by employers such as Maxwell-Gunter Air Force Base and Hyundai Motor Manufacturing Alabama, plus government, healthcare, and higher education. The property size is 27,250 square feet.
Key Highlights
- Located on Atlanta Highway with high traffic volume (22,436 vehicles per day) and strong visibility.
- Located in East Montgomery, a desirable residential area.
- Benefits from a stable and affluent consumer base with average household incomes exceeding $93,000.
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
$302,514
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
7.70%
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%
$6,050,280
$6.1M
Cap Rate 7%
$4,321,629
$4.3M
Cap Rate 9%
$3,361,267
$3.4M
Market Conditions
NOI Build-Up for 27,250 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
$457.8K $16.80/SF
− Vacancy
−$25.6K −$0.94/SF
EGI
$432.2K $15.86/SF
− OpEx
−$129.6K −$4.76/SF
NOI
$302.5K $11.10/SF
Area
Montgomery, AL
Vacancy
5.60%
Lease Rate
$16.80 /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%
$6,050,280
Cap Rate 7%
$4,321,629
Cap Rate 9%
$3,361,267
Alternative Uses
Best Use
Retail
$4.32M
$3.78M – $5.04M
NOI $302,514 @ 7.0% cap · market cap 7.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.65M
$4.94M – $6.59M
NOI $395,539 @ 7.0% cap · market cap 10.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
838
Businesses Nearby
47k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 81%
Dining 19%
Publix
Groceries
37,556 visits/mo
0.4 miles
SUBWAY
Dining
5,866 visits/mo
0.5 miles
Marco's Pizza
Dining
3,222 visits/mo
0.5 miles
Demographics for 36117, AL
53,172
Population
24,181
Households
2.2
Avg Household Size
38
Median Age
46%
College-Educated
94%
High-School Grad
53.3 sq mi
ZIP Area
998
Density / Sq Mi
$72,237
Median Household Income
$44,980
Median Earnings
$1,209
Median Rent
$225,900
Median Home Value
Market
Vacancy Rate% for Retail in Montgomery, AL
Questions? Ask Rey
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Similar Off Market Nearby
- Taylor Junction Shopping Center — 7076 Atlanta Hwy, Montgomery, AL 36117
Frequently Asked Questions
What type of property is this?
Shopping center - Retail property in Montgomery's east retail submarket with high visibility.
Where is this shopping center located?
The property is located at 7730 Atlanta Hwy Montgomery, AL.
What is the asking price?
The asking price for this property is $3,930,000.
What are key features of this property?
This property features: Located on Atlanta Highway with high traffic volume (22,436 vehicles per day) and strong visibility.; Located in East Montgomery, a desirable residential area.; Benefits from a stable and affluent consumer base with average household incomes exceeding $93,000.
