Building Details

Year Built 2024

Buildings 1

Stories 1

Tenancy Single

Listing Agency: Randall Commercial Group, LLC

Listed By: Elizabeth Randall · License #MS 19734 Show Phone

Source: Crexi

Added: Feb 23, 2024 Changed: Sep 13 Last Checked: Sep 13 at 7:32AM

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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 Randall Commercial Group, LLC

Investment Insights

Based on property information with market context.

A new, free-standing DG Market store is available for sale in Adamsville, Alabama. Located at 5370 Hazelwood Road in Jefferson County, the property features a 15-year NNN lease with 5% increases every 5 years during the primary term and each option. The lease commenced on May 31, 2024. The store is situated approximately 10 minutes from Interstate 65 and about 20 minutes from Birmingham, AL. The property size is 10640 square feet. Dollar General is an investment-grade tenant with a Standard & Poor’s “BBB” credit rating.

Key Highlights

• Brand new, free‑standing DG Market store.
• 15‑year NNN lease.
• 5% rent increases every 5 years during the primary term and each option.

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

$159,204

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

8.06%

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%

$3,184,080 $3.2M

Cap Rate 7%

$2,274,343 $2.3M

Cap Rate 9%

$1,768,933 $1.8M

Market Conditions

NOI Build-Up for 10,640 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

$220.9K $20.76/SF

− Vacancy

−$8.6K −$0.81/SF

EGI

$212.3K $19.95/SF

− OpEx

−$53.1K −$4.99/SF

NOI

$159.2K $14.96/SF

Area

Jefferson County, AL

Vacancy

3.90%

Lease Rate

$20.76 /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%

$3,184,080

Cap Rate 7%

$2,274,343

Cap Rate 9%

$1,768,933

Alternative Uses

Best Use

Specialty Retail

$2.27M

$1.99M – $2.65M (±1% cap)

NOI $159,204 @ 7.0% cap · market cap 8.06%

Second Best

Retail

$2.12M

$1.86M – $2.48M (±1% cap)

NOI $148,590 @ 7.0% cap · market cap 7.52%

Theoretical Best

Office A

$3.66M

$3.20M – $4.27M (±1% cap)

NOI $256,226 @ 7.0% cap · market cap 12.97%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Dollar General Discount Store

Suggested Use

Top Pick Hair Salon Big Box & Wholesale Store Nail Salon Spa & Massage Center (Bike/Boat/Book/etc) Store Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

24

Businesses Nearby

4k

Monthly Visits Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Groceries 100%

Dollar General Market Groceries

4,269 visits/mo 0.1 miles

Demographics for 35005, AL

7,578

Population

3,628

Households

2.1

Avg Household Size

42

Median Age

16%

College-Educated

86%

High-School Grad

31.7 sq mi

ZIP Area

239

Density / Sq Mi

$57,151

Median Household Income

$35,915

Median Earnings

$1,074

Median Rent

$138,100

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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What type of property is this? Where is this grocery and convenience stores located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - New free-standing DG Market store in Adamsville, AL for sale.

Where is this grocery and convenience store located?

The property is located at 5370 Hazelwood Rd Adamsville, AL.

What is the asking price?

The asking price for this property is $1,975,182.

What are key features of this property?

This property features: Brand new, free‑standing DG Market store.; 15‑year NNN lease.; 5% rent increases every 5 years during the primary term and each option.