Freestanding Medical Office Investment
For Sale
$1,414,839
7125 University Ct, Montgomery, AL 36117
7,310 SF medical office with a new 10-year NNN lease.
Property Size7,310 SF
Price / SF$193.55
Days on Market270
Property Features for 7125 University Ct
General Information
Standard status
Active
Size
7,310 SF
Class
C
Property subtype
Office
Building Details
Building Size
7,310 SF
Year Built
1998
Listing Agency:
Lee & Associates - Charlotte
(980) 254-1579
Listed By:
Benjamin Bivens · License #NC #282681
(980) 254-1579
Source:
Lee-associates
Added: Nov 26, 2025
Changed: Aug 8
Last Checked: Aug 23 at 3:42AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Lee & Associates - Charlotte
Investment Insights
Based on property information with market context.
This 7,310 SF freestanding medical office building, constructed in 1998, serves as Ally Psychiatry’s headquarters. Situated on approximately 0.59 acres, the property features ample surface parking and a modern medical build-out. The property is 100% leased under a new 10-year NNN lease. The base rent is $15.00 per square foot, generating $109,650 annually ($9,137 monthly), with 3% annual rent increases. The tenant is responsible for all expenses. The property is located in Montgomery, Alabama, the state capital and a major healthcare and government hub. The city is supported by three major hospital systems: Baptist Health, Jackson Hospital, and the Central Alabama Veterans Health Care System. Baptist Medical Center East recently invested $10 million in NICU expansion. Montgomery’s healthcare sector employs thousands, supported by Maxwell-Gunter Air Force Base, Alabama State University, and regional training programs. The tenant credit is supported by a multi-state platform and 150+ clinicians. The property is offered individually or as a portfolio with 109 Holiday Ct, D10, Franklin, TN & 333 Business Cir, Pelham, AL.
Key Highlights
- New 10‑year NNN lease with Ally Psychiatry, providing stable, long‑term income.
- $109,650 Year 1 Net Operating Income (NOI)** secured by Ally Psychiatry's headquarters.
- 7.7% unleveraged cap rate** on in‑place contractual rent.
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
$80,922
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
5.72%
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%
$1,618,440
$1.6M
Cap Rate 7%
$1,156,029
$1.2M
Cap Rate 9%
$899,133
$899.1K
Market Conditions
NOI Build-Up for 7,310 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
$131.6K $18.00/SF
− Vacancy
−$23.7K −$3.24/SF
EGI
$107.9K $14.76/SF
− OpEx
−$27.0K −$3.69/SF
NOI
$80.9K $11.07/SF
Area
Montgomery, AL
Vacancy
18.00%
Lease Rate
$18.00 /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%
$1,618,440
Cap Rate 7%
$1,156,029
Cap Rate 9%
$899,133
Alternative Uses
Best Use
Office B
$1.16M
$1.01M – $1.35M
NOI $80,922 @ 7.0% cap · market cap 5.72%
Second Best
Healthcare Medical
$1.15M
$1.01M – $1.34M
NOI $80,527 @ 7.0% cap · market cap 5.69%
Theoretical Best
Office A
$1.52M
$1.33M – $1.77M
NOI $106,106 @ 7.0% cap · market cap 7.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
764
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 36117, AL
53,172
Population
24,181
Households
2.2
Avg Household Size
38
Median Age
46%
College-Educated
94%
High-School Grad
53.3 sq mi
ZIP Area
998
Density / Sq Mi
$72,237
Median Household Income
$44,980
Median Earnings
$1,209
Median Rent
$225,900
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.
Similar Off Market Nearby
- Banfield Pet Hospital — 2510 Berryhill Rd, Montgomery, AL 36117
- Collins Robert DVM — 7131 Eastchase Pkwy, Montgomery, AL 36117
Frequently Asked Questions
What type of property is this?
Medical Office Space - 7,310 SF medical office with a new 10-year NNN lease.
Where is this medical office space located?
The property is located at 7125 University Ct Montgomery, AL.
What is the asking price?
The asking price for this property is $1,414,839.
What are key features of this property?
This property features: New 10‑year NNN lease with Ally Psychiatry, providing stable, long‑term income.; $109,650 Year 1 Net Operating Income (NOI)** secured by Ally Psychiatry's headquarters.; 7.7% unleveraged cap rate** on in‑place contractual rent.
