10-Unit Apartment
For Sale
$1,100,000
2005 Morgan Avenue and 201 8th Avenue, Decatur, AL 35601
Renovated multifamily property with current occupancy and updated HVAC equipment in two units.
Property Size9,302 SF
Price / SF$118.25
Days on Market195
Property Features for 2005 Morgan Avenue and 201 8th Avenue
General Information
Standard status
Active
Size
9,302 SF
Property subtype
MultiFamily Apartments
Occupancy
90%
Additional Details
Multifamily Units
10
Building Details
Building Size
9,302 SF
Year Built
1984
Year Renovated
2025
Listing Agency:
Gateway Alabama Realty Group LLC
(256) 509-2078
Listed By:
Len Johnson · License #40398
(256) 509-2078
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 31
Last Checked: Aug 31 at 1:37AM
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 Gateway Alabama Realty Group LLC
Investment Insights
Based on property information with market context.
This 9,302 SF apartment property contains 10 units, with each unit recently renovated. The building was constructed in 1984 and refurbished in 2025, combining an established structure with recent improvements. Two units have new HVAC systems installed in 2020 and 2021, and the property is 90% occupied.
The offering includes 2005 Morgan Avenue and 201 8th Avenue in Decatur, AL. A new roof was installed in 2022 at 201 8th Avenue. The property is convenient to Decatur shopping and restaurants, with nearby dining and cultural destinations including Big Bob Gibson Bar-B-Q, Mellow Mushroom, Cook Museum of Natural Science, and Old State Bank.
The offering includes 2005 Morgan Avenue and 201 8th Avenue in Decatur, AL. A new roof was installed in 2022 at 201 8th Avenue. The property is convenient to Decatur shopping and restaurants, with nearby dining and cultural destinations including Big Bob Gibson Bar-B-Q, Mellow Mushroom, Cook Museum of Natural Science, and Old State Bank.
Key Highlights
- 10 units totaling 9,302 SF
- 90% occupancy
- Units recently renovated; building refurbished in 2025
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
$70,832
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
6.44%
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%
$1,416,640
$1.4M
Cap Rate 7%
$1,011,886
$1.0M
Cap Rate 9%
$787,022
$787.0K
Market Conditions
NOI Build-Up for 9,302 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
$137.3K $14.76/SF
− Vacancy
−$8.5K −$0.92/SF
EGI
$128.8K $13.84/SF
− OpEx
−$58.0K −$6.23/SF
NOI
$70.8K $7.61/SF
Area
Morgan County, AL
Vacancy
6.20%
Lease Rate
$14.76 /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%
$1,416,640
Cap Rate 7%
$1,011,886
Cap Rate 9%
$787,022
Alternative Uses
Best Use
Apartment 5plus
$1.01M
$885.4K – $1.18M
NOI $70,832 @ 7.0% cap · market cap 6.44%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.94M
$1.69M – $2.26M
NOI $135,467 @ 7.0% cap · market cap 12.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
10
Residential units
90%
Occupancy
Location Intelligence
Trade Area within ½ mile
199
Businesses Nearby
Explore this area
Business Placement
Demographics for 35601, AL
34,958
Population
15,168
Households
2.3
Avg Household Size
38
Median Age
18%
College-Educated
77%
High-School Grad
26.5 sq mi
ZIP Area
1,319
Density / Sq Mi
$50,216
Median Household Income
$33,438
Median Earnings
$860
Median Rent
$148,100
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 - Renovated multifamily property with current occupancy and updated HVAC equipment in two units.
Where is this apartment building located?
The property is located at 2005 Morgan Avenue and 201 8th Avenue Decatur, AL.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 10 units totaling 9,302 SF; 90% occupancy; Units recently renovated; building refurbished in 2025
