Commercial Condo with Build-Out
For Sale
$179,000
Pending
2025 1st N Avenue 100, Birmingham, AL 35203
Commercial condominium with flexible space in a prime location.
Property Size1,970 SF
Days on Market219
Property Features for 2025 1st N Avenue 100
General Information
Standard status
Pending
Size
1,970 SF
Property subtype
Commercial/Industrial
Building Details
Year Built
1940
Listing Agency:
Keller Williams Homewood
(205) 566-1371
Listed By:
Jena Standard · License #105999
(205) 566-1371
Source:
Exitrealty
Added: Jan 24
Changed: Aug 16
Last Checked: Aug 15 at 4:49AM
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 Keller Williams Homewood
Investment Insights
Based on property information with market context.
This commercial condominium, offered as is and to be built, is located in a prime location. The property includes approximately 1,970 square feet on the main level, complemented by an additional 2,150-square-foot basement. This layout provides flexible space suitable for various commercial applications. It is ideal for both owner-users and investors looking for value and future build-out potential. The monthly condo dues are $1204. Buyers are advised to verify permitted uses, specifications, and build-out options. This unit presents an opportunity to secure a commercial space with strong upside in a sought-after area.
Key Highlights
- Priced below appraised value, offering immediate equity potential.
- Prime location with strong upside potential in a sought‑after area.
- Approximately 1,970 SF on the main level plus a 2,150 SF basement, providing flexible space.
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
$9,055
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
5.06%
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%
$181,100
$181.1K
Cap Rate 7%
$129,357
$129.4K
Cap Rate 9%
$100,611
$100.6K
Market Conditions
NOI Build-Up for 1,970 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
$14.2K $7.20/SF
− Vacancy
−$1.2K −$0.63/SF
EGI
$12.9K $6.57/SF
− OpEx
−$3.9K −$1.97/SF
NOI
$9.1K $4.60/SF
Area
Birmingham, AL
Vacancy
8.80%
Lease Rate
$7.20 /SF/Yr
Expense Ratio
30.00%
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%
$181,100
Cap Rate 7%
$129,357
Cap Rate 9%
$100,611
Alternative Uses
Best Use
Office B
$338.0K
$295.8K – $394.4K
NOI $23,661 @ 7.0% cap · market cap 13.22%
Second Best
Flex RnD
$273.5K
$239.3K – $319.1K
NOI $19,146 @ 7.0% cap · market cap 10.70%
Theoretical Best
Office A
$462.4K
$404.6K – $539.5K
NOI $32,368 @ 7.0% cap · market cap 18.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
584
Businesses Nearby
Explore this area
Business Placement
Demographics for 35203, AL
3,595
Population
2,114
Households
1.7
Avg Household Size
37
Median Age
41%
College-Educated
83%
High-School Grad
2.1 sq mi
ZIP Area
1,712
Density / Sq Mi
$46,829
Median Household Income
$51,183
Median Earnings
$954
Median Rent
$288,600
Median Home Value
Market
Vacancy Rate% for Office in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Commercial condominium with flexible space in a prime location.
Where is this office units located?
The property is located at 2025 1st N Avenue 100 Birmingham, AL.
What is the asking price?
The asking price for this property is $179,000.
What are key features of this property?
This property features: Priced below appraised value, offering immediate equity potential.; Prime location with strong upside potential in a sought‑after area.; Approximately 1,970 SF on the main level plus a 2,150 SF basement, providing flexible space.
