Residential Income Property with
For Sale
$134,900
1602 Government Street ST 1B, Mobile, AL 36604
Condo residence with period character, updated conveniences, and access to Midtown dining, coffee shops, and grocery shopping.
Property Size632 SF
Price / SF$213.45
Days on Market127
Property Features for 1602 Government Street ST 1B
General Information
Standard status
Active
Size
632 SF
Property subtype
Single Family
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$1,195
Amenities
balcony
hardwood and tile flooring
Building Details
Year Built
1930
Listing Agency:
Real Broker LLC
(334) 631-1234
Listed By:
Lisa Granger · License #112037
(251) 454-1170
Source:
Exitrealty
Added: Apr 29
Changed: Sep 1
Last Checked: Sep 1 at 4:51PM
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 Real Broker LLC
Investment Insights
Based on property information with market context.
This residential income property is a condo residence dating to 1930, with hardwood and tile floors throughout. The kitchen includes a refrigerator and stove, while the bedroom opens to a balcony that adds private outdoor space.
The property is located in Midtown, within a walkable setting near coffee shops, dining options, and the new Aldi grocery store. Its combination of established construction, essential kitchen appliances, and a balcony provides a practical residential configuration in an active urban area.
The property is located in Midtown, within a walkable setting near coffee shops, dining options, and the new Aldi grocery store. Its combination of established construction, essential kitchen appliances, and a balcony provides a practical residential configuration in an active urban area.
Key Highlights
- Condo residence built in 1930
- Hardwood and tile flooring throughout
- Kitchen includes a refrigerator and stove
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
$5,237
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
3.88%
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%
$104,740
$104.7K
Cap Rate 7%
$74,814
$74.8K
Cap Rate 9%
$58,189
$58.2K
Market Conditions
NOI Build-Up for 632 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
$10.2K $16.20/SF
− Vacancy
−$717 −$1.13/SF
EGI
$9.5K $15.07/SF
− OpEx
−$4.3K −$6.78/SF
NOI
$5.2K $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%
$104,740
Cap Rate 7%
$74,814
Cap Rate 9%
$58,189
Alternative Uses
Best Use
Apartment 5plus
$74.8K
$65.5K – $87.3K
NOI $5,237 @ 7.0% cap · market cap 3.88%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$160.6K
$140.6K – $187.4K
NOI $11,244 @ 7.0% cap · market cap 8.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
709
Businesses Nearby
Explore this area
Business Placement
Demographics for 36604, AL
8,798
Population
5,032
Households
1.7
Avg Household Size
40
Median Age
42%
College-Educated
93%
High-School Grad
2.6 sq mi
ZIP Area
3,384
Density / Sq Mi
$60,750
Median Household Income
$37,926
Median Earnings
$892
Median Rent
$236,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Condo residence with period character, updated conveniences, and access to Midtown dining, coffee shops, and grocery shopping.
Where is this residential income property located?
The property is located at 1602 Government Street ST 1B Mobile, AL.
What is the asking price?
The asking price for this property is $134,900.
What are key features of this property?
This property features: Condo residence built in 1930; Hardwood and tile flooring throughout; Kitchen includes a refrigerator and stove
