Medical Office Building with Private
For Sale
$179,400
407 S Second Street, Gadsden, AL 35901
Business Opportunity, Gadsden, AL
Property Size1,750 SF
Lot Size0.18 Acres
Price / SF$102.51
Days on Market30
Property Features for 407 S Second Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business
Directions
Rainbow Drive, Turn Onto South 4th Street, Turn Right Onto Bay Street, Turn Right Onto South 2nd Street And Building Is On The Right.
Standard status
Active
APN
1502091000043.000
Size
1,750 SF
Lot size
0.18 Acres
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Floors in Building
1
Flooring type
Carpet, Wood
Roof type
Shingle
Listing Agency:
Bone Realty Company
(256) 546-5543
Listed By:
Anna Tillman Inzer · License #137502
(256) 504-7553
Added: Aug 3
Changed: Aug 22
Last Checked: Sep 1 at 8:06AM
MLS# 21925491
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Investment Insights
Based on property information with market context.
This 1,750-square-foot brick medical office building includes a waiting room, reception area, three former exam rooms, and a private office with an existing sink and water connection. A separate rear room adds flexible workspace, while carpet and wood flooring support a professional interior setting. The building has a shingle roof and access to public water and public sewer.
Located at 407 S Second Street in Gadsden, the property includes a 0.18-acre lot and additional parking at the rear. Its configuration is suited to medical, dental, or other professional office use, with multiple enclosed rooms and dedicated reception and waiting areas.
Located at 407 S Second Street in Gadsden, the property includes a 0.18-acre lot and additional parking at the rear. Its configuration is suited to medical, dental, or other professional office use, with multiple enclosed rooms and dedicated reception and waiting areas.
Key Highlights
- 1,750‑square‑foot brick medical office building
- Waiting room and reception area included
- Three former exam rooms plus a private office with existing sink and water
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
$11,302
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
6.30%
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%
$226,040
$226.0K
Cap Rate 7%
$161,457
$161.5K
Cap Rate 9%
$125,578
$125.6K
Market Conditions
NOI Build-Up for 1,750 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
$19.3K $11.04/SF
− Vacancy
−$4.3K −$2.43/SF
EGI
$15.1K $8.61/SF
− OpEx
−$3.8K −$2.15/SF
NOI
$11.3K $6.46/SF
Area
Etowah County, AL
Vacancy
22.00%
Lease Rate
$11.04 /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%
$226,040
Cap Rate 7%
$161,457
Cap Rate 9%
$125,578
Alternative Uses
Best Use
Healthcare Medical
$265.8K
$232.6K – $310.1K
NOI $18,607 @ 7.0% cap · market cap 10.37%
Second Best
Office B
$161.5K
$141.3K – $188.4K
NOI $11,302 @ 7.0% cap · market cap 6.30%
Theoretical Best
Specialty Retail
$286.1K
$250.4K – $333.8K
NOI $20,029 @ 7.0% cap · market cap 11.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,537
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35901, AL
18,671
Population
9,075
Households
2.1
Avg Household Size
43
Median Age
22%
College-Educated
85%
High-School Grad
59.2 sq mi
ZIP Area
315
Density / Sq Mi
$47,826
Median Household Income
$30,212
Median Earnings
$747
Median Rent
$174,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - Brick professional office property with a practical multi-room layout and rear parking.
Where is this medical office space located?
The property is located at 407 S Second Street Gadsden, AL.
What is the asking price?
The asking price for this property is $179,400.
What are key features of this property?
This property features: 1,750‑square‑foot brick medical office building; Waiting room and reception area included; Three former exam rooms plus a private office with existing sink and water
