Unique Building in West
For Sale
$3,390,000
1435 Paramount Dr, Huntsville, AL 35806
Versatile 23,700 SF building suitable for diverse uses.
Property Size16,600 SF
Lot Size2.55 Acres
Price / SF$204.22
Days on Market654
Property Features for 1435 Paramount Dr
General Information
Standard status
Active
Size
16,600 SF
Lot size
2.55 Acres
Property subtype
Business Opportunity
Listing Agency:
Russ Russell Real Estate
(256) 527-7777
Listed By:
Russ Russell · License #25965
(256) 527-7777
Source:
Exprealty
Added: Nov 13, 2024
Changed: Aug 26
Last Checked: Aug 29 at 3:09PM
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 Russ Russell Real Estate
Investment Insights
Based on property information with market context.
This unique building in West Huntsville is suitable for churches, civic groups, associations, businesses, or training facilities. The 16,600 square foot main level features stamped concrete floors, partitioned offices, a private event space that can accommodate up to 400 people, and a full kitchen for concessions. It also includes 8,000 square feet of warehouse space. The property has fenced rear parking with two loading docks and two drive-in doors. The 7,100 square foot second level contains four private offices, a storage room, and two public restrooms. The total area of the building is 23,700 square feet.
Key Highlights
- Versatile 16,600sf main level suitable for various organizations.
- Large private event space (up to 400 people) with full kitchen.
- 8,000sf of warehouse space with loading docks and drive‑in doors.
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
$212,073
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
6.26%
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%
$4,241,460
$4.2M
Cap Rate 7%
$3,029,614
$3.0M
Cap Rate 9%
$2,356,367
$2.4M
Market Conditions
NOI Build-Up for 16,600 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
$332.7K $20.04/SF
− Vacancy
−$49.9K −$3.01/SF
EGI
$282.8K $17.03/SF
− OpEx
−$70.7K −$4.26/SF
NOI
$212.1K $12.78/SF
Area
Huntsville, AL
Vacancy
15.00%
Lease Rate
$20.04 /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%
$4,241,460
Cap Rate 7%
$3,029,614
Cap Rate 9%
$2,356,367
Alternative Uses
Best Use
Office B
$3.03M
$2.65M – $3.53M
NOI $212,073 @ 7.0% cap · market cap 6.26%
Second Best
Warehouse
$1.71M
$1.49M – $1.99M
NOI $119,447 @ 7.0% cap · market cap 3.52%
Theoretical Best
Office A
$4.32M
$3.78M – $5.04M
NOI $302,585 @ 7.0% cap · market cap 8.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
602
Businesses Nearby
Explore this area
Business Placement
Demographics for 35806, AL
25,702
Population
14,398
Households
1.8
Avg Household Size
36
Median Age
60%
College-Educated
97%
High-School Grad
25.4 sq mi
ZIP Area
1,012
Density / Sq Mi
$79,338
Median Household Income
$50,458
Median Earnings
$1,287
Median Rent
$318,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Church & religious facility - Versatile 23,700 SF building suitable for diverse uses.
Where is this church & religious facility located?
The property is located at 1435 Paramount Dr Huntsville, AL.
What is the asking price?
The asking price for this property is $3,390,000.
What are key features of this property?
This property features: Versatile 16,600sf main level suitable for various organizations.; Large private event space (up to 400 people) with full kitchen.; 8,000sf of warehouse space with loading docks and drive‑in doors.
