Listing Agency: Shannon Waltchack

Listed By: Alec Hersh · License #AL 140488 Show Phone

Source: Crexi

Added: Jan 8, 2024 Changed: Aug 21 Last Checked: Sep 1 at 2:42AM

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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 Shannon Waltchack

Investment Insights

Based on property information with market context.

Located at the corner of Patton Chapel Road and Highway 31, this 8,614 square foot office building is situated in Hoover's "Main and Main" area, with a daily traffic count exceeding 36,000 vehicles. The property benefits from its proximity to major transportation arteries, being less than one minute from I-65 and I-459. Additional nearby amenities include the Riverchase Galleria shopping mall and the Hoover Public Library. The location offers high visibility from Highway 31 and is positioned on a well-lit corner. The surrounding area features dense residential and daytime populations.

Key Highlights

• High traffic location: Over 36,000 vehicles daily at the corner of Patton Chapel Road and Highway 31.
• Excellent visibility: Located at a well‑lit corner and highly visible from Highway 31.
• Prime location: In the heart of Hoover’s “Main and Main”.

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

$90,705

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

3.57%

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%

$1,814,100 $1.8M

Cap Rate 7%

$1,295,786 $1.3M

Cap Rate 9%

$1,007,833 $1.0M

Market Conditions

NOI Build-Up for 8,614 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

$155.1K $18.00/SF

− Vacancy

−$34.1K −$3.96/SF

EGI

$120.9K $14.04/SF

− OpEx

−$30.2K −$3.51/SF

NOI

$90.7K $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%

$1,814,100

Cap Rate 7%

$1,295,786

Cap Rate 9%

$1,007,833

Alternative Uses

Best Use

Office B

$1.30M

$1.13M – $1.51M (±1% cap)

NOI $90,705 @ 7.0% cap · market cap 3.57%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.02M

$1.77M – $2.36M (±1% cap)

NOI $141,531 @ 7.0% cap · market cap 5.57%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Office buildings

Suggested Use

Top Pick Parking Lot & Garage Auto Parts Store Storage Facility Furniture & Home Goods Electrical Service HVAC Service

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

568

Businesses Nearby

Explore this area Business Placement

Demographics for 35216, AL

36,673

Population

16,333

Households

2.2

Avg Household Size

35

Median Age

53%

College-Educated

94%

High-School Grad

13.0 sq mi

ZIP Area

2,821

Density / Sq Mi

$73,125

Median Household Income

$42,767

Median Earnings

$1,314

Median Rent

$376,200

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

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Frequently Asked Questions

What type of property is this?

Office building - Highly visible office building in the heart of Hoover.

Where is this office building located?

The property is located at 1680 Montgomery Hwy Vestavia Hills, AL.

What is the asking price?

The asking price for this property is $2,540,000.

What are key features of this property?

This property features: High traffic location: Over 36,000 vehicles daily at the corner of Patton Chapel Road and Highway 31.; Excellent visibility: Located at a well‑lit corner and highly visible from Highway 31.; Prime location: In the heart of Hoover’s “Main and Main”.