Decatur Multifamily Investment
For Sale
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201 8th Ave SW, Decatur, AL 35601
Value-add multifamily property in Decatur, Alabama with potential upside.
Property Size3,448 SF
Price / SF$116.01
Days on Market197
Property Features for 201 8th Ave SW
General Information
Standard status
Active
Size
3,448 SF
Property subtype
Multifamily
Zoning
B-2
Building Details
Year Built
1986
Listing Agency:
Gateway Alabama Realty Group, LLC
(256) 429-9360
Listed By:
Len Johnson · License #40398
Source:
Crexi
Added: Jan 29
Changed: Aug 8
Last Checked: Aug 8 at 6:38AM
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 multifamily property is a value-add opportunity with potential for increased market rents. One vacant unit has been recently renovated and is ready for an owner-occupant. A new roof and gutters were installed in 2022, and units have been recently renovated with upgrades and updates. Tenants are responsible for trash and electric, while the owner covers water/sewer, lawn care, and maintenance. The property is located in Decatur, offering residents convenient access to dining, shopping, and entertainment. Parks, schools, and healthcare facilities are also easily accessible. The area features a strong rental market and a growing economy, creating favorable conditions for real estate investment. Nearby attractions include Point Mallard Park, Cook's Natural Science Museum, and the Wheeler National Wildlife Refuge. The property can be purchased as a 10-unit portfolio by adding a 5-unit apartment building and a single-family rental located at 2005 Morgan Avenue SW, Decatur, AL.
Key Highlights
- Value‑add opportunity with potential to increase rents and achieve a pro‑forma NOI of $28,560.
- One vacant, recently renovated unit is rent‑ready, ideal for an owner‑occupant.
- New roof and gutters installed in 2022.
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
$26,255
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
6.56%
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%
$525,100
$525.1K
Cap Rate 7%
$375,071
$375.1K
Cap Rate 9%
$291,722
$291.7K
Market Conditions
NOI Build-Up for 3,448 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
$50.9K $14.76/SF
− Vacancy
−$3.2K −$0.92/SF
EGI
$47.7K $13.84/SF
− OpEx
−$21.5K −$6.23/SF
NOI
$26.3K $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%
$525,100
Cap Rate 7%
$375,071
Cap Rate 9%
$291,722
Alternative Uses
Best Use
Apartment 5plus
$375.1K
$328.2K – $437.6K
NOI $26,255 @ 7.0% cap · market cap 6.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$717.3K
$627.7K – $836.9K
NOI $50,214 @ 7.0% cap · market cap 12.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
137
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 - Value-add multifamily property in Decatur, Alabama with potential upside.
Where is this apartment building located?
The property is located at 201 8th Ave SW Decatur, AL.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: Value‑add opportunity with potential to increase rents and achieve a pro‑forma NOI of $28,560.; One vacant, recently renovated unit is rent‑ready, ideal for an owner‑occupant.; New roof and gutters installed in 2022.
