Renovated Workforce Apartment
For Sale
Contact for pricing
1561 Pike Rd, Birmingham, AL 35218
Two apartment communities total 146 units, with large-scale renovations including HVAC, roofing, and windows.
Property Size97,160 SF
Price / SF$93.17
Days on Market56
Property Features for 1561 Pike Rd
General Information
Standard status
Active
Size
97,160 SF
Class
C
Total Parking Spaces
149
Property subtype
Multifamily
Zoning
R5 and R6
Occupancy
94%
Investment Type
Value Add
Net Operating Income
$612,000
Additional Details
Multifamily Units
146
Building Details
Year Built
1974
Year Renovated
2026
Buildings
15
Stories
2
Units
146
Tenancy
Multi
Listing Agency:
Windy City RE LLC
(747) 271-1834
Listed By:
Milan Rubenstein · License #IL 01324137
Source:
Crexi
Added: Jul 8
Changed: Aug 22
Last Checked: Aug 31 at 6:12PM
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 Windy City RE LLC
Investment Insights
Based on property information with market context.
A 146-unit, two-asset offering comprising Pointe Arlington (88 units) and Fountain Blue (58 units). Both communities are 1970s-vintage properties that have completed substantial, capital-intensive repositioning. Across the portfolio, more than $4.3 million in capital improvements has been deployed, covering interior renovations, roofing, HVAC, water heaters, windows, and exterior systems. Pointe Arlington shows 93% renovated units, while Fountain Blue is approximately 75% renovated. The heavy structural work is complete, with remaining improvement opportunities focused on routine unit turns rather than further large-scale execution.
The portfolio is located at 1561 Pike Rd in established, infill Birmingham submarkets, available for purchase together or separately. Both assets were renovated with the intent to deliver stabilized operations with the majority of unit upgrades already in place.
The portfolio is located at 1561 Pike Rd in established, infill Birmingham submarkets, available for purchase together or separately. Both assets were renovated with the intent to deliver stabilized operations with the majority of unit upgrades already in place.
Key Highlights
- 146‑unit, two‑asset apartment portfolio: Pointe Arlington (88 units) and Fountain Blue (58 units)
- Both communities were built in 1974 and have undergone substantial capital improvements
- $4.3M+ in capital improvements across the two assets, including interior renovations, roofing, HVAC, water heaters, windows, and exterior systems
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
$700,656
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
7.74%
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%
$14,013,120
$14.0M
Cap Rate 7%
$10,009,371
$10.0M
Cap Rate 9%
$7,785,067
$7.8M
Market Conditions
NOI Build-Up for 97,160 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
$1.41M $14.52/SF
− Vacancy
−$136.8K −$1.41/SF
EGI
$1.27M $13.11/SF
− OpEx
−$573.3K −$5.90/SF
NOI
$700.7K $7.21/SF
Area
Birmingham, AL
Vacancy
9.70%
Lease Rate
$14.52 /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%
$14,013,120
Cap Rate 7%
$10,009,371
Cap Rate 9%
$7,785,067
Alternative Uses
Best Use
Apartment 5plus
$10.01M
$8.76M – $11.68M
NOI $700,656 @ 7.0% cap · market cap 7.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$22.81M
$19.95M – $26.61M
NOI $1,596,378 @ 7.0% cap · market cap 17.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
146
Residential units
Location Intelligence
Trade Area within ½ mile
432
Businesses Nearby
Explore this area
Business Placement
Demographics for 35218, AL
6,521
Population
3,274
Households
2
Avg Household Size
42
Median Age
9%
College-Educated
82%
High-School Grad
2.6 sq mi
ZIP Area
2,508
Density / Sq Mi
$30,966
Median Household Income
$22,331
Median Earnings
$897
Median Rent
$79,500
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 - Two apartment communities total 146 units, with large-scale renovations including HVAC, roofing, and windows.
Where is this apartment building located?
The property is located at 1561 Pike Rd Birmingham, AL.
What is the asking price?
The asking price for this property is $9,052,000.
What are key features of this property?
This property features: 146‑unit, two‑asset apartment portfolio: Pointe Arlington (88 units) and Fountain Blue (58 units); Both communities were built in 1974 and have undergone substantial capital improvements; $4.3M+ in capital improvements across the two assets, including interior renovations, roofing, HVAC, water heaters, windows, and exterior systems
