Renovated 16-Unit Apartment
For Sale
$1,595,000
1614 SE Somerville Road, Decatur, AL 35601
MULTI_FAMILY - Decatur, AL
Property Size16,764 SF
Lot Size0.90 Acres
Price / SF$95.14
Days on Market10
Property Features for 1614 SE Somerville Road
General Information
Property type
Residential Multi Family
Property subtype
Other
Parking
32
Parking features
Off Street, Driveway, Covered
Patio and Porch features
Porch, Deck, Patio
Appliances
Oven, Refrigerator, Dishwasher, W/D Hookup, Electric Water Heater
Subdivision
Fairview Land Company
Elementary school
Walter Jackson
Middle school
Decatur
High school
Decatur
Directions
Co Lot 15, 16, 17 Block 3
Standard status
Active
APN
03 09 29 4 001 087.000
Size
16,764 SF
Lot size
0.90 Acres
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating), Central, Varies by Unit (Heating)
Cooling system
Central Air
Water source
Public
Building Details
Number of units
16
Listing Agency:
Gateway Al Realty Group LLC
(256) 509-2078
Listed By:
Len Johnson · License #40398
(256) 509-2078
Added: Aug 17
Changed: Aug 18
Last Checked: Aug 26 at 7:06AM
MLS# 21926730
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Investment Insights
Based on property information with market context.
This 16-unit apartment property contains 16,764 square feet on 0.9 acres. The apartments have undergone renovations and updates while retaining distinct design elements. Unit features include ovens, refrigerators, dishwashers, electric water heaters, and washer/dryer hookups. Heating varies by unit and includes electric and central systems, while cooling is provided by central air.
The property is located in Decatur, Alabama, and has reported 100% occupancy. Parking includes covered spaces, driveway parking, and additional off-street spaces. Outdoor features include porches, decks, and patios. Public water and public sewer serve the property, which carries R-4 zoning.
The property is located in Decatur, Alabama, and has reported 100% occupancy. Parking includes covered spaces, driveway parking, and additional off-street spaces. Outdoor features include porches, decks, and patios. Public water and public sewer serve the property, which carries R-4 zoning.
Key Highlights
- 16‑unit apartment property with 16,764 square feet
- 0.9‑acre site in Decatur, Alabama
- 100% occupancy reported
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
$127,653
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
8.00%
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%
$2,553,060
$2.6M
Cap Rate 7%
$1,823,614
$1.8M
Cap Rate 9%
$1,418,367
$1.4M
Market Conditions
NOI Build-Up for 16,764 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
$247.4K $14.76/SF
− Vacancy
−$15.3K −$0.92/SF
EGI
$232.1K $13.84/SF
− OpEx
−$104.4K −$6.23/SF
NOI
$127.7K $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%
$2,553,060
Cap Rate 7%
$1,823,614
Cap Rate 9%
$1,418,367
Alternative Uses
Best Use
Apartment 5plus
$1.82M
$1.60M – $2.13M
NOI $127,653 @ 7.0% cap · market cap 8.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.49M
$3.05M – $4.07M
NOI $244,137 @ 7.0% cap · market cap 15.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
944
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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - R-4 zoning, covered parking, and updated interiors support this established multifamily property.
Where is this apartment building located?
The property is located at 1614 SE Somerville Road Decatur, AL.
What is the asking price?
The asking price for this property is $1,595,000.
What are key features of this property?
This property features: 16‑unit apartment property with 16,764 square feet; 0.9‑acre site in Decatur, Alabama; 100% occupancy reported
