Mixed-Use Live-Work
For Sale
$1,599,000
1340 The Townes, Tuscaloosa, AL 35406
Two-level configuration combines ground-floor commercial space with an upper-level residence.
Property Size4,200 SF
Price / SF$380.71
Days on Market14
Property Features for 1340 The Townes
General Information
Standard status
Active
Size
4,200 SF
Property subtype
Commercial
Amenities
concrete deck
covered rear parking
Listing Agency:
Harwood Real Estate LLC
(205) 764-1637
Listed By:
Richard Harwood · License #118535018
Source:
Advantagerealtygroup
Added: Aug 16
Changed: Aug 28
Last Checked: Aug 28 at 8:21PM
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 Harwood Real Estate LLC
Investment Insights
Based on property information with market context.
Located at 1340 The Townes in Tuscaloosa, this mixed-use property combines commercial functionality with an upper-level living component. The ground floor provides retail or other commercial space, while the level above is configured as a residence, creating a live-work arrangement within one property. A concrete deck extends the usable outdoor area, and covered parking is positioned at the rear. The property is situated at the entrance to The Townes. Its reported property size is 4,200, with the configuration centered on separate commercial and residential areas.
Key Highlights
- Ground‑floor retail or commercial space
- Upper‑level living area creates a live‑work configuration
- Concrete deck provides outdoor space
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
$49,888
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
3.12%
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%
$997,760
$997.8K
Cap Rate 7%
$712,686
$712.7K
Cap Rate 9%
$554,311
$554.3K
Market Conditions
NOI Build-Up for 4,200 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
$88.2K $21.00/SF
− Vacancy
−$8.4K −$2.00/SF
EGI
$79.8K $19.01/SF
− OpEx
−$29.9K −$7.13/SF
NOI
$49.9K $11.88/SF
Area
Tuscaloosa, AL
Vacancy
9.50%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
37.50%
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%
$997,760
Cap Rate 7%
$712,686
Cap Rate 9%
$554,311
Alternative Uses
Best Use
Mixed Use
$712.7K
$623.6K – $831.5K
NOI $49,888 @ 7.0% cap · market cap 3.12%
Second Best
Office B
$695.0K
$608.1K – $810.8K
NOI $48,649 @ 7.0% cap · market cap 3.04%
Theoretical Best
Office A
$1.01M
$883.1K – $1.18M
NOI $70,651 @ 7.0% cap · market cap 4.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
145
Businesses Nearby
Explore this area
Business Placement
Demographics for 35406, AL
16,664
Population
8,291
Households
2
Avg Household Size
40
Median Age
68%
College-Educated
97%
High-School Grad
80.9 sq mi
ZIP Area
206
Density / Sq Mi
$118,736
Median Household Income
$68,810
Median Earnings
$1,352
Median Rent
$467,000
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?
Mixed-use property - Two-level configuration combines ground-floor commercial space with an upper-level residence.
Where is this mixed-use property located?
The property is located at 1340 The Townes Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $1,599,000.
What are key features of this property?
This property features: Ground‑floor retail or commercial space; Upper‑level living area creates a live‑work configuration; Concrete deck provides outdoor space
