3403 Rainbow DrRainbow City, AL 35906

Property Details for 3403 Rainbow Dr

Year built

2005

Construction

CONCRETE BLOCKS

Lot size

1.64 AC

Property size (Sq ft)

10,186 SF

Property type

Investment properties

Property subtype

Live-work space

APN

15-09-29-3-000-041.000

APU

1509293000041000

Description

This exceptional investment opportunity presents a 13,200 square-foot CVS Pharmacy located at 3403 Rainbow Dr, Rainbow City, AL 35906, within the Birmingham MSA. The property boasts a strong 6.75% cap rate and a substantial net operating income (NOI) of $125,926. Built in 2005 on a 1.65-acre lot, the building is 100% occupied under an absolute NNN lease with a credit-rated tenant, CVS Pharmacy. The lease commenced December 17, 2004, and expires January 31, 2030, leaving approximately 5.2 years remaining on the primary term, with ten 5-year renewal options. The lease includes a corporate guaranty from CVS and features a significant 33% rental escalation in the first renewal option. The property benefits from a high-traffic location near the intersection of Rainbow Drive and East Grand Avenue (combined 54,849 vehicles per day), surrounded by strong national and regional tenants including Publix, Winn-Dixie, and others. The surrounding area has a population of 45,102 within a 5-mile radius, with an average household income of $65,773. The asking price is $1,865,585, translating to $141.33 per square foot. This is a rare opportunity to acquire a well-performing, low-risk investment with a nationally recognized tenant and significant long-term growth potential. Detailed lease terms are available upon request.

• CAP approach

  CAP return

  Valuation

  6%

  $2,154,384

  6.5%

  $1,988,662

  7%

  $1,846,614

• Comparable approach

  Method

  Valuation

  Relative Method

  $1,659,197

  Geo Method

  $1,986,881

• Alternative Use

  Use

  Valuation

  Residential

  $2,465,940

  Hospitality

  $2,258,788

  Educational

  $1,879,285

  Medical

  $1,943,917

  Retail

  $2,923,332

Location Insight

City

Rainbow City

County

Etowah

State

Alabama

Latitude

33.9573

Longitude

-86.0399

CBSA code

23460

CBSA name

GADSDEN, AL METROPOLITAN STATISTICAL AREA

Property Tax & Assessments

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