Renovated 32-Unit Apartment
For Sale
$2,080,000
2901 Pleasant Valley Rd, Mobile, AL 36606
Turnkey 32-unit multifamily offers newly renovated one-bedroom units with updated LVP flooring and fixtures.
Property Size18,496 SF
Days on Market141
Property Features for 2901 Pleasant Valley Rd
General Information
Standard status
Active
Size
18,496 SF
Property subtype
Multifamily
Building Details
Building Size
18,496 SF
Listing Agency:
(205) 516-6107
Listed By:
Jason Hyde
Source:
Svn
Added: Apr 13
Changed: Aug 8
Last Checked: Aug 30 at 2:26PM
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 Jason Hyde
Investment Insights
Based on property information with market context.
Bird’s Nest is a highly stabilized 32-unit multifamily community featuring efficient one-bedroom, one-bathroom layouts. The property is offered in turnkey condition with 100% of the units newly renovated, including LVP flooring, upgraded appliances, new vanities, and modernized fixtures, designed to minimize immediate capital expenditures.
Located at 2901 Pleasant Valley Rd in Mobile, AL, the community is described as steps away from The Retreat at Pleasant Valley. The remarks note that an investor acquiring both assets can pursue operational efficiencies through shared staffing, management, and maintenance.
Ownership retains flexibility to pivot between market-rate tenants and Section 8 subsidized tenants. The offering materials further include projections of a 7.69% Year 1 Cap Rate and a 19.6% 5-Year IRR.
Located at 2901 Pleasant Valley Rd in Mobile, AL, the community is described as steps away from The Retreat at Pleasant Valley. The remarks note that an investor acquiring both assets can pursue operational efficiencies through shared staffing, management, and maintenance.
Ownership retains flexibility to pivot between market-rate tenants and Section 8 subsidized tenants. The offering materials further include projections of a 7.69% Year 1 Cap Rate and a 19.6% 5-Year IRR.
Key Highlights
- 32‑unit multifamily community with efficient 1BD/1BA layouts averaging 578 SF
- Turnkey renovations: all units newly renovated with LVP flooring
- Renovation updates include upgraded appliances, new vanities, and modernized fixtures
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
$153,263
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
7.37%
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%
$3,065,260
$3.1M
Cap Rate 7%
$2,189,471
$2.2M
Cap Rate 9%
$1,702,922
$1.7M
Market Conditions
NOI Build-Up for 18,496 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
$299.6K $16.20/SF
− Vacancy
−$21.0K −$1.13/SF
EGI
$278.7K $15.07/SF
− OpEx
−$125.4K −$6.78/SF
NOI
$153.3K $8.29/SF
Area
Mobile, AL
Vacancy
7.00%
Lease Rate
$16.20 /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%
$3,065,260
Cap Rate 7%
$2,189,471
Cap Rate 9%
$1,702,922
Alternative Uses
Best Use
Apartment 5plus
$2.19M
$1.92M – $2.55M
NOI $153,263 @ 7.0% cap · market cap 7.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.70M
$4.11M – $5.48M
NOI $329,075 @ 7.0% cap · market cap 15.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
431
Businesses Nearby
Explore this area
Business Placement
Demographics for 36606, AL
19,042
Population
9,129
Households
2.1
Avg Household Size
35
Median Age
29%
College-Educated
89%
High-School Grad
6.8 sq mi
ZIP Area
2,800
Density / Sq Mi
$49,561
Median Household Income
$37,094
Median Earnings
$938
Median Rent
$141,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Turnkey 32-unit multifamily offers newly renovated one-bedroom units with updated LVP flooring and fixtures.
Where is this apartment building located?
The property is located at 2901 Pleasant Valley Rd Mobile, AL.
What is the asking price?
The asking price for this property is $2,080,000.
What are key features of this property?
This property features: 32‑unit multifamily community with efficient 1BD/1BA layouts averaging 578 SF; Turnkey renovations: all units newly renovated with LVP flooring; Renovation updates include upgraded appliances, new vanities, and modernized fixtures
