Pelham Medical Office For
For Sale
Contact for pricing
Pending
1973 Chandalar Dr, Pelham, AL 35124
Medical office space with 6 operatories, ample parking.
Property Size7,548 SF
Days on Market923
Property Features for 1973 Chandalar Dr
General Information
Standard status
Pending
Size
7,548 SF
Class
B
Property subtype
Office
Investment Type
Owner/User
Building Details
Year Built
1999
Buildings
1
Stories
2
Units
3
Listing Agency:
Lightpoint
(205) 919-1528
Listed By:
Kyle Church · License #AL 000124859 - 1
Source:
Crexi
Added: Feb 20, 2024
Changed: Aug 25
Last Checked: Aug 29 at 10:37PM
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 Lightpoint
Investment Insights
Based on property information with market context.
This 7,548-square-foot commercial property is located off Highway 31 in Pelham, Alabama. The property is built out as a dental office, featuring 6 operatories. It offers convenient access to I-65, Highway 31, and 119. Ample parking is available, with a parking ratio of 4.5 per 1,000 square feet.
Key Highlights
- Built out dental office with 6 Operatories
- Conveniently located right off of HWY 31 in Pelham
- Easy access from I‑65, Hwy 31, and 119
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
$79,480
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
8.07%
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%
$1,589,600
$1.6M
Cap Rate 7%
$1,135,429
$1.1M
Cap Rate 9%
$883,111
$883.1K
Market Conditions
NOI Build-Up for 7,548 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
$135.9K $18.00/SF
− Vacancy
−$29.9K −$3.96/SF
EGI
$106.0K $14.04/SF
− OpEx
−$26.5K −$3.51/SF
NOI
$79.5K $10.53/SF
Area
Shelby County, AL
Vacancy
22.00%
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%
$1,589,600
Cap Rate 7%
$1,135,429
Cap Rate 9%
$883,111
Alternative Uses
Best Use
Healthcare Medical
$1.46M
$1.28M – $1.70M
NOI $102,143 @ 7.0% cap · market cap 10.37%
Second Best
Office B
$1.14M
$993.5K – $1.32M
NOI $79,480 @ 7.0% cap · market cap 8.07%
Theoretical Best
Office A
$1.77M
$1.55M – $2.07M
NOI $124,017 @ 7.0% cap · market cap 12.59%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
430
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 35124, AL
25,667
Population
10,207
Households
2.5
Avg Household Size
40
Median Age
50%
College-Educated
95%
High-School Grad
42.6 sq mi
ZIP Area
603
Density / Sq Mi
$91,513
Median Household Income
$50,970
Median Earnings
$1,575
Median Rent
$282,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Medical office space with 6 operatories, ample parking.
Where is this medical office space located?
The property is located at 1973 Chandalar Dr Pelham, AL.
What is the asking price?
The asking price for this property is $985,000.
What are key features of this property?
This property features: Built out dental office with 6 Operatories; Conveniently located right off of HWY 31 in Pelham; Easy access from I‑65, Hwy 31, and 119
