Why I Recommend Adding Commercial Property in Elberta and Foley, Alabama to Your Investment Portfolio
Licensed in Alabama and Florida
"Guided by Integrity. Backed by Experience. Search the Gulf with Meredith Amon."
When investors ask me where they should look beyond beachfront condos or vacation homes, I often steer the conversation toward an underappreciated opportunity: commercial property in Elberta and Foley, Alabama. These two towns are strategically located in Baldwin County—just minutes from the beaches, yet grounded in year-round economic activity and long-term growth.
As a real estate advisor who lives and works on the Gulf Coast, I’ve come to truly believe that smart commercial real estate in our inland towns is one of the most overlooked investment plays in our region.
Why Commercial Property in Elberta & Foley Makes Sense
1. Fewer “Like-Kind” Properties = Higher Demand at Resale
One of the biggest advantages of buying commercial real estate in these areas is the limited inventory of similar properties. Unlike condo complexes or residential subdivisions, there just aren’t that many well-located commercial spaces available—especially those with visibility, parking, and access to major roads like Highway 98 and County Road 20.
"When you own one of the few well-positioned commercial properties in a growing market, you’re not just holding real estate—you’re holding leverage. That’s a powerful position to be in as an investor."
2. Steady Tenants, Lower Wear and Tear
Commercial tenants—whether they're operating a café, service business, retail shop, or professional office—generally treat their leased space with a sense of pride and responsibility. Why? Because their business depends on it. That often means less turnover, more consistent maintenance, and fewer emotional issues than what we sometimes see in residential leasing.
"With commercial tenants, you're usually dealing with business-minded professionals. They're focused on running their operations—not calling at 9 p.m. about a dripping faucet."
What to Know About CAP Rates in Our Area
The CAP rate (capitalization rate) is a simple way to evaluate a commercial property’s return based on the income it generates. In Baldwin County, CAP rates for smaller commercial properties tend to range from 6% to 8%, depending on use, condition, lease terms, and tenant quality.
Here’s a basic scenario I walk through with clients:
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Purchase Price: $500,000
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Annual Rental Income: $40,000
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Operating Expenses: $5,000
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Net Operating Income (NOI): $35,000
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CAP Rate: 7%
"In today’s market, a 7% CAP rate with long-term upside appreciation in a high-growth corridor like Foley or Elberta is a smart play. You’re earning income while the land gains value."
Some investors are also looking at vacant or underutilized commercial buildings and adding value through renovations, zoning changes, or converting them into multi-tenant income properties. This is where you can push returns even higher—especially if you buy right and hold for appreciation.
Foley & Elberta: Growth Drivers You Shouldn’t Overlook
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Foley: Home to OWA Parks & Resort, the Tanger Outlets, and a booming retail corridor along Hwy 59. New construction is everywhere—from housing to hospitality.
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Elberta: Smaller and more rural, but strategically located near the new Baldwin Beach Express and growing demand for service businesses, warehouses, and mixed-use projects.
"Elberta gives me the feel of old Baldwin County—quiet, steady, with big potential. Foley, on the other hand, is like a rocket ship of development. Both offer different, but equally valuable, entry points into commercial real estate."
Discover Commercial Real Estate in Foley and Elberta Alabama
Why Work With Me
Navigating commercial real estate is different from buying a condo or home. You need someone who understands zoning, traffic flow, tenant types, lease structures, and income forecasting. That’s where I come in.
My approach is personal, data-driven, and hyper-local. I don’t just pull listings—I help you see potential, weigh long-term value, and understand what’s going on at the ground level. Whether you're buying to lease out, occupy for your own business, or add to a 1031 Exchange, I can help you structure the deal with confidence.
Here are some top-performing commercial property types in Elberta and Foley, AL—offering strong CAP rates and compelling income potential:
High-Cap-Rate Commercial Opportunities (as of July 2025)
1. Dollar General Market – Elberta
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Price: ~$2.48M
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Cap Rate: ~6.75% under a 15-year absolute NNN lease structure (Showcase, CommercialSearch)
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Advantages:
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Built in 2025 with a strong corporate tenant (S&P‑rated BBB).
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5% rent bumps every five years.
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Low management burden due to NNN terms.
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Minimal nearby competition—prime for regional expansion.
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Potential: Steady income with inflation-hedged growth, minimal oversight—investor-friendly.
2. Self-Storage Facility – Foley
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Price: $6.6M
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Annual Gross Income: ~$480K; NOI: ~$405K
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Cap Rate: ~6.14% current, rising to ~7.95% at market-rent levels (CommercialCafe)
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Advantages:
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Fully leased, with recent 12K SF expansion.
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Ideal for local use—RV, boat, contractor storage.
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Access control and security features reduce wear and vacancy risk.
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Room to scale rents further.
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Potential: Reliable and scalable income, great upside as market matures.
3. Vacant Retail + Land – Foley
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Land/Lot Listings: Priced $90K–$400K annually for ground-lease land; larger parcels run $1.25M+ (Crexi)
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Advantages:
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Long-term ground leases (~20 years with extensions).
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No tenant management; ideal for passive income.
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High traffic zones near Hwy 59/Hwy 98—visibility and access.
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Potential: Strong CAP (customizable) with minimal operational risk.
Cap-Rate Scenarios – Simplified Examples
Using the CAP rate formula:
CAP Rate=NOIPurchase Price×100\text{CAP Rate} = \frac{\text{NOI}}{\text{Purchase Price}} × 100
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Dollar General: NOI ≈ $167K → 6.75% on $2.48M price
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Storage Facility: NOI ≈ $405K → 6.14% now, 7.95% projected
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Retail Land Lease: At $200K annual NOI on $1.25M → 16% CAP (hypothetical example—ground leases can produce high yields, but typically land-only deals carry lease/renewal risk to consider)
Real-Life Quotations from Me:
“That Dollar General lease is the definition of hassle‑free income—corporate tenant, built brand new, rent escalators built in. It’s practically automatic revenue.”
“Self‑storage in Foley is a cash-flow machine—contractor and RV demand outstrips supply, and you’re collecting every dollar.”
“Ground leases are gold if you want serious yield: high CAPs and nearly zero maintenance—just accept the long-term lease structure and renewal factors.”
Summary of Best Picks (July 2025)
| Property Type | Price Point | CAP Rate* | Pros |
|---|---|---|---|
| Dollar General – Elberta | $2.48M | ~6.75% | Triple-net lease, rent increases, corporate tenant |
| Storage Facility – Foley | $6.6M | 6.14–7.95% | Fully leased, expansion upside, low tenant risk |
| Ground-Lease Retail Land | $90K–$400K+/yr NOI | Varied (up to 16% hypothetical) | Passive, high yield—but lease terms matter |
*CAP rates reflect current NOI; future escalations may push income higher.
Why These Properties Stand Out
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Low Maintenance Needs: NNN leases and storage/self-storage tenants demand minimal landlord oversight.
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Rental Escalation & Market Alignment: Lease escalators and room to raise rents in growing markets (Foley & Elberta).
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Scarcity & Location: Limited supply of well-positioned commercial spaces means strong resale potential and better tenant retention.
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Diverse Market Options: From stabilized income (Dollar General) to value-add potential (storage expansion) to high-yield ground leases.
Why Work with Me, Meredith Amon
Understanding local market dynamics, lease structures, and investment risk is where I excel. I tailor strategies based on your goals—whether you want passive income, scalability, or value-add upside. Plus, I can analyze lease terms, run CAP rate scenarios, and connect you with properties before they hit the broader market.
Let’s explore current listings and build a custom investment plan that aligns with your financial goals.
Visit www.searchthegulf.com to explore available commercial listings or contact me directly to dive into specifics.
"Every commercial property has a story. I’ll help you read between the lines—and decide whether it’s the right chapter to add to your portfolio."
If you’ve been considering expanding your real estate investments beyond residential holdings, take a closer look at commercial opportunities in Elberta and Foley. They may not be on everyone’s radar yet, but that’s exactly why they belong on yours.
Let’s talk about what’s available now—and how we can build long-term value into your investment strategy.
Explore commercial property listings in Foley and Elberta, Alabama on my website or reach out directly if you'd like to schedule a tour or walk through CAP rate scenarios together.
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