REQUEST A TOUR If you would like to see this home without being there in person, select the "Virtual Tour" option and your agent will contact you to discuss available opportunities.
In-PersonVirtual Tour
$ 1,100,000
Est. payment /mo
Active
318 STATE HIGHWAY 59 Summerdale, AL 36580
UPDATED:
Key Details
Property Type Commercial
Sub Type Hospitality
Listing Status Active
Purchase Type For Sale
MLS Listing ID 385971
Construction Status Resale
HOA Y/N No
Year Built 1996
Property Sub-Type Hospitality
Source Baldwin County
Property Description
10% Cap Rate Investment – 100% OccupancyLocated on Highway 59 in the heart of Summerdale, this 2.3-acre property is zoned B-2 (Commercial Business) and offers high visibility and strong traffic counts. The property includes eight cottages/tiny homes (ten rental units total) with approximately 5,900 square feet of rentable space. All units are furnished and leased on a weekly basis. Riviera provides electricity, Point Broadband provides internet, and the Town of Summerdale provides water and sewer.Although the property is currently 100% occupied, a 10% vacancy expense has been applied in the underwriting to reflect realistic long-term performance and to calculate the stated 10% cap rate.Financials (Annual)Insurance: $10,800Taxes: $3,850Utilities: $26,000Landscaping: $2,100General Maintenance & Repairs: $9,048Vacancy (Hypothetical 10%): $18,096Property BreakdownBuilding 1 (Triplex, c. 1943 / former Summerdale Post Office)Approx. 1,543 sq. ft. totalUnit 1A: ~700 sq. ft., rents $320/week (potential $400/week with renovation)Units 1B & 1C: ~400 sq. ft. each, rent $320/weekCottage 2 – 3BR/1BA, ~1,042 sq. ft. | Renovated 2017 | Tenant since 2022Cottage 3 – 1BR/1BA, ~435 sq. ft. | Renovated 2024 | Tenant in placeCottage 4 – Studio, ~224 sq. ft. | $260/week | Tenant since 2021Cottage 5 – 2BR/1BA, ~710 sq. ft. | Renovated 2022Cottage 6 – 1BR/1BA, ~540 sq. ft. | Tenant since 2017Cottage 7 – 1BR/1BA, ~480 sq. ft. | Renovated 2018 | Tenant since 2019Cottage 8 – 2BR/1BA, ~685 sq. ft. | Renovated 2023Laundry Facility – ~144 sq. ft., currently free to tenants. Potential for revenue if converted to coin-operated.Investment Highlights10% Cap Rate calculated with 10% vacancy factorCurrent 100% occupancy and consistent rental performanceHighway 59 frontage with strong visibility and traffic countsValue-add potential through rent increases and laundry conversionAll information deemed reliable but not guaranteed. Buyer to verify all information during due diligence.
Location
State AL
County Baldwin
Zoning Commercial
Rooms
Dining Room None
Interior
Heating Central, Electric
Flooring Vinyl, Carpet
Heat Source Central, Electric
Exterior
Utilities Available Water City, Sewage City, Other/See Remarks
Waterfront Description No Waterfront
Roof Type Metal
Building
Lot Description Other/See Remarks
Construction Status Resale
Others
Special Listing Condition None
Listed by Wise Living Real Estate, LLC
Ready TO BUY OR SELL? CONTACT US TODAY!
Search OUR FEATURED CITIES