Fully Equipped Restaurant with
For Sale
Contact for pricing
905 Hobson Street, Greensboro, AL 36744
For-sale restaurant built for efficient service, featuring a commercial kitchen, dining space, and ample parking on a 1-acre lot.
Property Size5,840 SF
Lot Size1.00 Acre
Price / SF$256.85
Days on Market70
Property Features for 905 Hobson Street
General Information
Standard status
Active
Size
5,840 SF
Lot size
1.00 Acre
Property subtype
Retail
Lease Type
Gross
Additional Details
Business Included
Yes
Building Details
Year Built
2005
Tenancy
Single
Listing Agency:
Bill Mackey Real Estate
(334) 289-8470
Listed By:
Bill Mackey · License #AL20853
Source:
Crexi
Added: Jun 4
Changed: Aug 8
Last Checked: Aug 11 at 4:28PM
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 Bill Mackey Real Estate
Investment Insights
Based on property information with market context.
This for-sale restaurant property is housed in a dedicated building with a large dining area designed for flexible guest seating. The space includes a fully outfitted commercial kitchen and a welcoming bar or service area to support both high-volume service and more intimate dining formats. With ample indoor room, the layout can accommodate private dining, event-style gatherings, or other operational needs.
Located at 905 Hobson Street in Greensboro, AL 36744, the property is positioned on a 1-acre lot in a high-visibility, high-traffic setting. Access is supported by ample parking on-site, and the outdoor area provides space for potential additions such as patio seating, entertainment space, or drive-thru capabilities.
For an operator, the existing kitchen and service layout can support continued restaurant use with minimal reconfiguration. For a new concept, the property’s combination of dining capacity, bar/service space, and dedicated commercial kitchen equipment offers a practical foundation to establish a restaurant operation, while the parking and outdoor flexibility support customer convenience and future site updates.
Located at 905 Hobson Street in Greensboro, AL 36744, the property is positioned on a 1-acre lot in a high-visibility, high-traffic setting. Access is supported by ample parking on-site, and the outdoor area provides space for potential additions such as patio seating, entertainment space, or drive-thru capabilities.
For an operator, the existing kitchen and service layout can support continued restaurant use with minimal reconfiguration. For a new concept, the property’s combination of dining capacity, bar/service space, and dedicated commercial kitchen equipment offers a practical foundation to establish a restaurant operation, while the parking and outdoor flexibility support customer convenience and future site updates.
Key Highlights
- Restaurant property built in 2005 on a 1‑acre lot
- Fully outfitted commercial kitchen plus bar or service area
- Large dining area with flexible seating, with space for private dining or events
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
$73,479
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
4.90%
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%
$1,469,580
$1.5M
Cap Rate 7%
$1,049,700
$1.0M
Cap Rate 9%
$816,433
$816.4K
Market Conditions
NOI Build-Up for 5,840 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
$105.1K $18.00/SF
− Vacancy
−$7.1K −$1.22/SF
EGI
$98.0K $16.78/SF
− OpEx
−$24.5K −$4.19/SF
NOI
$73.5K $12.58/SF
Area
Hale County, AL
Vacancy
6.80%
Lease Rate
$18.00 /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%
$1,469,580
Cap Rate 7%
$1,049,700
Cap Rate 9%
$816,433
Alternative Uses
Best Use
Specialty Retail
$1.05M
$918.5K – $1.22M
NOI $73,479 @ 7.0% cap · market cap 4.90%
Second Best
Industrial
$401.6K
$351.4K – $468.5K
NOI $28,109 @ 7.0% cap · market cap 1.87%
Theoretical Best
Office A
$1.40M
$1.23M – $1.64M
NOI $98,238 @ 7.0% cap · market cap 6.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
85
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 36744, AL
6,444
Population
3,256
Households
2
Avg Household Size
42
Median Age
15%
College-Educated
79%
High-School Grad
223.8 sq mi
ZIP Area
29
Density / Sq Mi
$33,983
Median Household Income
$25,559
Median Earnings
$716
Median Rent
$151,200
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?
Conventional restaurant - For-sale restaurant built for efficient service, featuring a commercial kitchen, dining space, and ample parking on a 1-acre lot.
Where is this conventional restaurant located?
The property is located at 905 Hobson Street Greensboro, AL.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Restaurant property built in 2005 on a 1‑acre lot; Fully outfitted commercial kitchen plus bar or service area; Large dining area with flexible seating, with space for private dining or events
