Somerset Plaza
Closed7730-7798 Atlanta Hwy, Montgomery, AL 36117
$3,700,00027,250 SF
Retail
Property type
Retail
Price
$3,700,000
Building size
27,250 sf
Rentable area
27,250 SF
Year built
Year renovated
Occupancy
Zoning code
Lot size
7.86 Acres
Sold/status
Sold · Date unknown
Sale price
$3700000
CAP
7.50%
Property description
The center benefits from NNN lease structures, limited landlord expense exposure, and embedded rental growth within select leases. With 2,500 square feet currently vacant and average in-place rents below modeled market assumptions, the offering presents both stable income and measurable upside potential. Located within a dense retail and residential corridor, the property is supported by 89,373 residents within a five-mile radius and average household incomes exceeding $93,000.
Property highlights
- Attractive 7.50% Going-In Cap Rate providing strong day-one yield supported by $294,725 in in-place net operating income.
- High-Performing Multi-Tenant Strip Center totaling 27,250 RSF and currently 85.33% occupied, delivering stable and diversified cash flow.
- Strategic Location Along Atlanta Highway (22,436 VPD), Montgomery’s primary east retail corridor with strong daily commuter traffic and established retail synergy.
- Affluent and Dense Trade Area, supported by 89,373 residents within five miles and average household incomes exceeding $93,000.
- NNN Lease Structure with minimal landlord responsibilities and a manageable 24.6% expense ratio, enhancing income durability.
- Embedded Growth and Upside Potential through 4,000 SF vacancy comprised of the centers two end cap units and contractual rent increases, offering opportunity to drive NOI through lease-up and mark-to-market strategies.
- Well-Maintained 2003 Construction situated on a sizable 7.86-acre parcel with ample surface parking and strong visibility.
- Compelling Basis at $144 PSF, below recent strip retail sale averages in comparable Alabama markets.
- Diversified Tenant Mix reducing reliance on any single operator and limiting concentration risk.