Huntsville Mixed-Use Property For
For Sale
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1435 Paramount Dr, Huntsville, AL 35806
Versatile mixed-use property with showroom, warehouse, and event space.
Property Size32,933 SF
Price / SF$102.94
Days on Market656
Property Features for 1435 Paramount Dr
General Information
Standard status
Active
Size
32,933 SF
Class
A
Total Parking Spaces
90
Property subtype
Industrial, Retail, Special Purpose
Zoning
C-4, HUB, Opportunity
Lease Type
NNN
Building Details
Year Built
2006
Buildings
1
Stories
2
Listing Agency:
Russ Russell Commercial Real Estate
(256) 536-7777
Listed By:
Russ Russell · License #AL000025965-1
Source:
Crexi
Added: Nov 13, 2024
Changed: Aug 24
Last Checked: Aug 28 at 10:35AM
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 Commercial Real Estate
Investment Insights
Based on property information with market context.
Located off Highway 72 West in Huntsville, Alabama, near the Providence community, this property offers a range of possibilities. It features over 90 paved parking spaces, including ADA parking, plus a gravel parking area for oversized vehicles and secure parking. The property includes over 8,600 square feet of showroom and employee break area, private offices, almost 8,000 square feet of high bay warehouse space, and a community gathering hall of over 7,100 square feet. The showroom features decorative stamped concrete flooring, a reception desk, showcases, and four large glass-fronted offices. The main level includes an event center that can accommodate over 400 visitors, complete with theatrical lighting and professional audio/video equipment. This space has been used by churches, civic groups, associations, businesses, and the entertainment industry. Other potential uses include a training facility, wedding venue, or car dealership. The main level also includes public restrooms, a company kitchen with countertops and cabinets, a janitorial service room, a large storage room, and a vending machine area. Upstairs, there are four additional private offices, one with a private restroom and another with a large storage room, plus an office that opens to a large workspace overlooking the main showroom. The warehouse area is divided into three large areas, accessible by roll-up doors. The loading dock is fenced off for secure vehicle parking. The property size is 32,933 square feet.
Key Highlights
- Prime location near Highway 72 West and the Providence community in Huntsville, Alabama.
- Extensive space: Over 8,600 sq ft of showroom/office, almost 8,000 sq ft of high bay warehouse, and over 7,100 sq ft community gathering hall.
- Versatile Event Center: Accommodates 400+ people with stage, theatrical lighting, and professional audio/video.
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
$236,972
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
6.99%
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%
$4,739,440
$4.7M
Cap Rate 7%
$3,385,314
$3.4M
Cap Rate 9%
$2,633,022
$2.6M
Market Conditions
NOI Build-Up for 32,933 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
$296.4K $9.00/SF
− Vacancy
−$17.6K −$0.53/SF
EGI
$278.8K $8.47/SF
− OpEx
−$41.8K −$1.27/SF
NOI
$237.0K $7.20/SF
Area
Huntsville, AL
Vacancy
5.94%
Lease Rate
$9.00 /SF/Yr
Expense Ratio
15.00%
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%
$4,739,440
Cap Rate 7%
$3,385,314
Cap Rate 9%
$2,633,022
Alternative Uses
Best Use
Retail
$5.75M
$5.03M – $6.71M
NOI $402,507 @ 7.0% cap · market cap 11.87%
Second Best
Mixed Use
$5.68M
$4.97M – $6.63M
NOI $397,666 @ 7.0% cap · market cap 11.73%
Theoretical Best
Office A
$8.58M
$7.50M – $10.01M
NOI $600,303 @ 7.0% cap · market cap 17.71%
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 Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Versatile mixed-use property with showroom, warehouse, and event space.
Where is this mixed-use property 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: Prime location near Highway 72 West and the Providence community in Huntsville, Alabama.; Extensive space: Over 8,600 sq ft of showroom/office, almost 8,000 sq ft of high bay warehouse, and over 7,100 sq ft community gathering hall.; Versatile Event Center: Accommodates 400+ people with stage, theatrical lighting, and professional audio/video.
