Three-Home Multifamily
For Sale
$999,900
12101 Stonegate Drive, Huntsville, AL 35803
Residential Income, Huntsville, AL
Property Size5,398 SF
Lot Size2.40 Acres
Price / SF$185.24
Days on Market100
Property Features for 12101 Stonegate Drive
General Information
Property type
Residential Multi Family
Property subtype
Other
Zoning description
Industrial
Parking
6
Parking features
Driveway
Subdivision
Metes And Bounds
Elementary school
Challenger
Middle school
Challenger
High school
Grissom High School
Directions
South On Memorial Parkey Left On Stonegate
Standard status
Active
Size
5,398 SF
Lot size
2.40 Acres
Utilities
Sewer type
Public Sewer
Water source
Public
Building Details
Number of units
3
Listing Agency:
Bhhs Rise Real Estate
(256) 882-0304
Listed By:
Anne Adams · License #40164
(256) 337-2625
Added: Jun 18
Changed: Aug 19
Last Checked: Sep 25 at 4:06AM
MLS# 21921260
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Investment Insights
Based on property information with market context.
This multifamily property includes three homes totaling 5,398 square feet on a level 2.4-acre tract. The residences are being conveyed together, and all three are currently occupied. Driveway parking, public water, and public sewer serve the property.
The site is zoned Light Industrial and is positioned just off Memorial Parkway in Huntsville. The stated land-use framework allows consideration of multifamily housing and other approved commercial or light industrial uses. Shopping, schools, Redstone Arsenal, and major highways are identified as nearby destinations. The property includes 12101 Stonegate Drive, 12105 Stonegate Drive, and 12111 Memorial Parkway.
The site is zoned Light Industrial and is positioned just off Memorial Parkway in Huntsville. The stated land-use framework allows consideration of multifamily housing and other approved commercial or light industrial uses. Shopping, schools, Redstone Arsenal, and major highways are identified as nearby destinations. The property includes 12101 Stonegate Drive, 12105 Stonegate Drive, and 12111 Memorial Parkway.
Key Highlights
- Three homes totaling 5,398 square feet on 2.4 acres
- All three residences are currently occupied
- Light Industrial zoning supports multifamily and approved commercial or light industrial uses
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
$34,097
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
3.41%
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%
$681,940
$681.9K
Cap Rate 7%
$487,100
$487.1K
Cap Rate 9%
$378,856
$378.9K
Market Conditions
NOI Build-Up for 5,398 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
$75.8K $14.04/SF
− Vacancy
−$13.8K −$2.56/SF
EGI
$62.0K $11.48/SF
− OpEx
−$27.9K −$5.17/SF
NOI
$34.1K $6.32/SF
Area
Huntsville, AL
Vacancy
18.20%
Lease Rate
$14.04 /SF/Yr
Expense Ratio
45.00%
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%
$681,940
Cap Rate 7%
$487,100
Cap Rate 9%
$378,856
Alternative Uses
Best Use
Apartment 5plus
$487.1K
$426.2K – $568.3K
NOI $34,097 @ 7.0% cap · market cap 3.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.41M
$1.23M – $1.64M
NOI $98,395 @ 7.0% cap · market cap 9.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
3
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
228
Businesses Nearby
Explore this area
Business Placement
Demographics for 35803, AL
29,001
Population
13,272
Households
2.2
Avg Household Size
43
Median Age
54%
College-Educated
96%
High-School Grad
49.2 sq mi
ZIP Area
589
Density / Sq Mi
$95,182
Median Household Income
$53,416
Median Earnings
$1,221
Median Rent
$259,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Multifamily property - Occupied residences provide existing rental use on a level tract with public water and sewer.
Where is this multifamily property located?
The property is located at 12101 Stonegate Drive Huntsville, AL.
What is the asking price?
The asking price for this property is $999,900.
What are key features of this property?
This property features: Three homes totaling 5,398 square feet on 2.4 acres; All three residences are currently occupied; Light Industrial zoning supports multifamily and approved commercial or light industrial uses
