Renovated Office
For Sale
$314,900
414- Hargrove Road E, Tuscaloosa, AL 35401
CommercialSale, Tuscaloosa, AL
Property Size1,399 SF
Price / SF$225.09
Days on Market25
Property Features for 414- Hargrove Road E
General Information
Property type
Commercial Sale
Property subtype
Office
Directions
FROM McFARLAND BLVD GO 3 BLOCKS WEST ON HARGROVE ROAD EAST. PROPERTY ON THE RIGHT, NW CORNER OF HARGROVE @ 5TH AVE. E.
Subdivision
(02) Central Tuscaloosa City
Standard status
Active
APN
31-07-25-4-003-009.000
Size
1,399 SF
Taxes and HOA fees
Tax Description
Lot 1 In Resurv Frederick Dr Subd Less & Except Public Street R/W
Tax Annual Amount
1661
Legal Description
Lot 1 In Resurv Frederick Dr Subd Less & Except Public Street R/W
Building Details
Year built
1950
Number of units
1
Listing Agency:
Advantage Realty Group
(205) 345-0116
Listed By:
Zeke Zeanah
(205) 799-5844
Added: Aug 10
Changed: Sep 2
Last Checked: Sep 3 at 2:06PM
MLS# 176803
Copyright © 2026 West Alabama Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,399-square-foot office building occupies a former residential structure built in 1950 and has undergone extensive renovation. Improvements include a new roof, electrical and plumbing systems, windows, fixtures, countertops, interior and exterior paint, and refinished floors. A central A/C unit installed approximately 7 years ago serves the building.
The property is positioned off McFarland Boulevard in Tuscaloosa, approximately 1.5 miles from the University of Alabama. On-site parking is also identified as a property feature, adding practical convenience for office users and visitors.
The property is positioned off McFarland Boulevard in Tuscaloosa, approximately 1.5 miles from the University of Alabama. On-site parking is also identified as a property feature, adding practical convenience for office users and visitors.
Key Highlights
- 1,399 SF office building
- Renovated former house converted for office use
- Built in 1950 with extensive updates
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
$16,205
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
5.15%
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%
$324,100
$324.1K
Cap Rate 7%
$231,500
$231.5K
Cap Rate 9%
$180,056
$180.1K
Market Conditions
NOI Build-Up for 1,399 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
$27.7K $19.80/SF
− Vacancy
−$6.1K −$4.36/SF
EGI
$21.6K $15.44/SF
− OpEx
−$5.4K −$3.86/SF
NOI
$16.2K $11.58/SF
Area
Tuscaloosa, AL
Vacancy
22.00%
Lease Rate
$19.80 /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%
$324,100
Cap Rate 7%
$231,500
Cap Rate 9%
$180,056
Alternative Uses
Best Use
Office B
$231.5K
$202.6K – $270.1K
NOI $16,205 @ 7.0% cap · market cap 5.15%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$336.2K
$294.2K – $392.2K
NOI $23,533 @ 7.0% cap · market cap 7.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
752
Businesses Nearby
Explore this area
Business Placement
Demographics for 35401, AL
41,852
Population
19,517
Households
2.1
Avg Household Size
26
Median Age
27%
College-Educated
85%
High-School Grad
40.1 sq mi
ZIP Area
1,044
Density / Sq Mi
$30,031
Median Household Income
$13,041
Median Earnings
$911
Median Rent
$141,100
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?
Office building - Updated office property with parking and proximity to the University of Alabama.
Where is this office building located?
The property is located at 414- Hargrove Road E Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $314,900.
What are key features of this property?
This property features: 1,399 SF office building; Renovated former house converted for office use; Built in 1950 with extensive updates
