Renovated 16-Unit Apartment
For Sale
Contact for pricing
1614 Somerville Rd SE, Decatur, AL 35601
16-unit apartment building in Decatur, recently renovated and offering covered plus off-street parking under R-4 zoning.
Property Size16,764 SF
Price / SF$100.21
Days on Market54
Property Features for 1614 Somerville Rd SE
General Information
Standard status
Active
Size
16,764 SF
Class
C
Property subtype
Multifamily
Zoning
R-4
Occupancy
93%
Investment Type
Core+
Net Operating Income
$94,890
Additional Details
Multifamily Units
16
Building Details
Year Built
1974
Year Renovated
2026
Buildings
2
Stories
2
Units
16
Tenancy
Multi
Listing Agency:
Gateway Alabama Realty Group, LLC
(256) 429-9360
Listed By:
Len Johnson · License #40398
Source:
Crexi
Added: Jun 20
Changed: Aug 8
Last Checked: Jul 15 at 7:59PM
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 16-unit multifamily apartment complex at 1614 Somerville Rd SE includes a 16,764 SF building. The property has been thoughtfully renovated with upgrades and updates while preserving the complex’s unique design and character. Covered parking is available for residents, along with additional off-street parking to support everyday tenant needs. The property is listed with a 93.8% occupancy rate, providing an income-producing profile for an owner-operator or investor.
The complex is located in Decatur, Alabama and sits within R-4 zoning. The offering is positioned to serve renters looking for a multifamily option in a central city setting, with access to local cultural and community destinations named in the remarks, including Wheeler National Wildlife Refuge, Old State Bank, and the Princess Theatre Center for the Performing Arts.
For tenants, the combination of renovated living spaces and on-site parking can help reduce daily friction associated with commuting and parking availability. For buyers, this property presents a straightforward 16-unit ownership structure with documented occupancy and established residential use under R-4 zoning. Operators seeking a maintained multifamily asset can evaluate the building’s renovation work, resident parking setup, and unit mix within the existing framework of the property.
The complex is located in Decatur, Alabama and sits within R-4 zoning. The offering is positioned to serve renters looking for a multifamily option in a central city setting, with access to local cultural and community destinations named in the remarks, including Wheeler National Wildlife Refuge, Old State Bank, and the Princess Theatre Center for the Performing Arts.
For tenants, the combination of renovated living spaces and on-site parking can help reduce daily friction associated with commuting and parking availability. For buyers, this property presents a straightforward 16-unit ownership structure with documented occupancy and established residential use under R-4 zoning. Operators seeking a maintained multifamily asset can evaluate the building’s renovation work, resident parking setup, and unit mix within the existing framework of the property.
Key Highlights
- 16‑unit multifamily apartment complex in Decatur, AL
- 16,764 SF building built in 1974
- Recently renovated with upgrades and updates
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
7.60%
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 7.60%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.49M
$3.05M – $4.07M
NOI $244,137 @ 7.0% cap · market cap 14.53%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16
Residential units
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
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Frequently Asked Questions
What type of property is this?
Apartment building - 16-unit apartment building in Decatur, recently renovated and offering covered plus off-street parking under R-4 zoning.
Where is this apartment building located?
The property is located at 1614 Somerville Rd SE Decatur, AL.
What is the asking price?
The asking price for this property is $1,680,000.
What are key features of this property?
This property features: 16‑unit multifamily apartment complex in Decatur, AL; 16,764 SF building built in 1974; Recently renovated with upgrades and updates
