CVS Pharmacy NNN
For Sale
Contact for pricing
806 Hoke St, Gadsden, AL 35903
Absolute NNN retail asset leased to CVS with a long-term extension and no rent holiday.
Property Size10,406 SF
Price / SF$240.04
Days on Market251
Property Features for 806 Hoke St
General Information
Standard status
Active
Size
10,406 SF
Property subtype
RETAIL
Net Operating Income
$171,100
Financials
Asking Price
$2,497,810
Cap Rate
6.85%
Building Details
Year Built
2000
Tenancy
Single
Listing Agency:
Colliers | Birmingham
(205) 222-4440
Listed By:
Joe Sandner III, SIOR
(205) 222-4440
Source:
Moodyscre
Added: Dec 23, 2025
Changed: Aug 29
Last Checked: Aug 29 at 5:31PM
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 Colliers | Birmingham
Investment Insights
Based on property information with market context.
This 10,406-square-foot retail property in Gadsden, Alabama, was constructed in 2000 for CVS Pharmacy and is leased under an absolute NNN structure. The lease has more than 14 years remaining, with no rent holiday, and includes a CVS corporate guarantee. In 2019, the tenant executed a 20-year extension, continuing its occupancy of the building and supporting the established retail use.
The property is offered debt-free and carries a 6.85% cap rate. Its single-tenant configuration and documented lease extension provide a straightforward format for an investor seeking an occupied retail asset with defined lease obligations.
The property is offered debt-free and carries a 6.85% cap rate. Its single-tenant configuration and documented lease extension provide a straightforward format for an investor seeking an occupied retail asset with defined lease obligations.
Key Highlights
- 10,406‑square‑foot CVS Pharmacy building in Gadsden, AL
- Absolute NNN lease with more than 14 years remaining
- 20‑year lease extension completed in 2019
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
$119,100
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
4.77%
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%
$2,382,000
$2.4M
Cap Rate 7%
$1,701,429
$1.7M
Cap Rate 9%
$1,323,333
$1.3M
Market Conditions
NOI Build-Up for 10,406 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
$168.6K $16.20/SF
− Vacancy
−$9.8K −$0.94/SF
EGI
$158.8K $15.26/SF
− OpEx
−$39.7K −$3.82/SF
NOI
$119.1K $11.45/SF
Area
Etowah County, AL
Vacancy
5.80%
Lease Rate
$16.20 /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%
$2,382,000
Cap Rate 7%
$1,701,429
Cap Rate 9%
$1,323,333
Alternative Uses
Best Use
Specialty Retail
$1.70M
$1.49M – $1.99M
NOI $119,100 @ 7.0% cap · market cap 4.77%
Second Best
Retail
$1.37M
$1.20M – $1.60M
NOI $96,151 @ 7.0% cap · market cap 3.85%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
488
Businesses Nearby
Explore this area
Business Placement
Demographics for 35903, AL
17,344
Population
8,338
Households
2.1
Avg Household Size
41
Median Age
16%
College-Educated
87%
High-School Grad
68.2 sq mi
ZIP Area
254
Density / Sq Mi
$50,063
Median Household Income
$35,361
Median Earnings
$823
Median Rent
$170,000
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?
NNN property - Absolute NNN retail asset leased to CVS with a long-term extension and no rent holiday.
Where is this nnn property located?
The property is located at 806 Hoke St Gadsden, AL.
What is the asking price?
The asking price for this property is $2,497,810.
What are key features of this property?
This property features: 10,406‑square‑foot CVS Pharmacy building in Gadsden, AL; Absolute NNN lease with more than 14 years remaining; 20‑year lease extension completed in 2019
