Three-Unit Office/Medical
For Sale
$1,500,000
1635 Highway 31 NW, Hartselle, AL 35640
Well-maintained 5,900 SF building with three units, built in 2000 and zoned B1 along Highway 31.
Property Size5,900 SF
Price / SF$254.24
Days on Market56
Property Features for 1635 Highway 31 NW
General Information
Standard status
Active
Size
5,900 SF
Class
A
Property subtype
Office
Zoning
B1
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
3
Building Details
Building Size
5,900 SF
Year Built
2000
Tenancy
Multi
Listed By:
Will Swann · License #AL #000173842-0
(256) 606-2424
Source:
Gatewaycommercial
Added: Jul 11
Changed: Sep 2
Last Checked: Sep 4 at 2:28AM
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 Will Swann
Investment Insights
Based on property information with market context.
This well-maintained commercial building offers a versatile, single or multi-tenant configuration with three office/medical units. Constructed in 2000, the property totals 5,900 square feet and is described as having a recently renovated suite, supporting office or medical/dental use.
Positioned along Highway 31, the property is presented as highly visible and accessible for tenants and clients. The remarks also note the building’s proximity to Hartselle Health Park ER and that it sits across from a proposed surgery center, reinforcing its suitability for medical-related businesses.
Positioned along Highway 31, the property is presented as highly visible and accessible for tenants and clients. The remarks also note the building’s proximity to Hartselle Health Park ER and that it sits across from a proposed surgery center, reinforcing its suitability for medical-related businesses.
Key Highlights
- 5,900 SF building built in 2000 with three units for office or medical use
- Zoned B1
- Located along Highway 31
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
$66,534
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
4.44%
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%
$1,330,680
$1.3M
Cap Rate 7%
$950,486
$950.5K
Cap Rate 9%
$739,267
$739.3K
Market Conditions
NOI Build-Up for 5,900 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
$123.9K $21.00/SF
− Vacancy
−$13.0K −$2.21/SF
EGI
$110.9K $18.80/SF
− OpEx
−$44.4K −$7.52/SF
NOI
$66.5K $11.28/SF
Area
Morgan County, AL
Vacancy
10.50%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
40.00%
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%
$1,330,680
Cap Rate 7%
$950,486
Cap Rate 9%
$739,267
Alternative Uses
Best Use
Healthcare Medical
$950.5K
$831.7K – $1.11M
NOI $66,534 @ 7.0% cap · market cap 4.44%
Second Best
Office B
$857.9K
$750.7K – $1.00M
NOI $60,056 @ 7.0% cap · market cap 4.00%
Theoretical Best
Office A
$1.23M
$1.07M – $1.43M
NOI $85,923 @ 7.0% cap · market cap 5.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
139
Businesses Nearby
Explore this area
Business Placement
Demographics for 35640, AL
25,913
Population
11,023
Households
2.4
Avg Household Size
41
Median Age
25%
College-Educated
89%
High-School Grad
106.9 sq mi
ZIP Area
242
Density / Sq Mi
$69,686
Median Household Income
$43,844
Median Earnings
$767
Median Rent
$196,600
Median Home Value
Market
Vacancy Rate% for Office 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?
Office units - Well-maintained 5,900 SF building with three units, built in 2000 and zoned B1 along Highway 31.
Where is this office units located?
The property is located at 1635 Highway 31 NW Hartselle, AL.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 5,900 SF building built in 2000 with three units for office or medical use; Zoned B1; Located along Highway 31
