Creative Space Recording
For Sale
$96,900
215 NW 3rd Avenue NW, Arab, AL 35016
COMMERCIAL - Arab, AL
Property Size636 SF
Lot Size0.25 Acres
Price / SF$152.36
Days on Market43
Property Features for 215 NW 3rd Avenue NW
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Business, Commercial
Parking features
Driveway, Oversize
Exterior features
Sidewalks, Curb/Gutters
Directions
North On Main Street / Al-69 Turn Right Onto 3rd Avenue Nw. Business Is Located At 215 3rd Avenue Nw. Or South On Main Street / Al-69 Turn Left Onto 3rd Avenue Nw.
Standard status
Active
Size
636 SF
Lot size
0.25 Acres
Utilities
Sewer type
Public Sewer
Cooling system
Central Air
Water source
Public
Building Details
Floors in Building
1
Flooring type
Carpet, Vinyl
Roof type
Metal
Listing Agency:
1st Real Estate, LLC
(256) 486-3775
Listed By:
Patricia Swindle · License #113352
(256) 744-6225
Added: Jul 1
Changed: Aug 4
Last Checked: Aug 12 at 12:06AM
MLS# 21921926
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Investment Insights
Based on property information with market context.
Creative space previously operated as a recording studio for the past 10 years, offered in a brick building with a metal roof. The property is 636 SF and includes a half bath on a slab, with interior flooring of carpet and vinyl. Central air cooling supports year-round use, and the building has public water and public sewer service.
The site sits on a 0.25-acre lot and is located downtown in Arab, off Main Street at 215 3rd Avenue NW. Parking is available with an oversize driveway and sidewalks along the exterior.
Zoned for both commercial and residential use, the seller is open to considering a different layout for the right buyer, and the property may offer room for expansion of the building.
The site sits on a 0.25-acre lot and is located downtown in Arab, off Main Street at 215 3rd Avenue NW. Parking is available with an oversize driveway and sidewalks along the exterior.
Zoned for both commercial and residential use, the seller is open to considering a different layout for the right buyer, and the property may offer room for expansion of the building.
Key Highlights
- Previously operated as a recording studio for the past 10 years
- 636 SF brick building with metal roof and half bath on slab
- 0.25‑acre lot with sidewalks and curb/gutters
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
$7,169
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
7.40%
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%
$143,380
$143.4K
Cap Rate 7%
$102,414
$102.4K
Cap Rate 9%
$79,656
$79.7K
Market Conditions
NOI Build-Up for 636 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
$11.4K $18.00/SF
− Vacancy
−$1.9K −$2.97/SF
EGI
$9.6K $15.03/SF
− OpEx
−$2.4K −$3.76/SF
NOI
$7.2K $11.27/SF
Area
Marshall County, AL
Vacancy
16.50%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$143,380
Cap Rate 7%
$102,414
Cap Rate 9%
$79,656
Alternative Uses
Best Use
Office B
$102.4K
$89.6K – $119.5K
NOI $7,169 @ 7.0% cap · market cap 7.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$137.3K
$120.1K – $160.2K
NOI $9,609 @ 7.0% cap · market cap 9.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
482
Businesses Nearby
Explore this area
Business Placement
Demographics for 35016, AL
17,495
Population
7,372
Households
2.4
Avg Household Size
42
Median Age
22%
College-Educated
89%
High-School Grad
79.0 sq mi
ZIP Area
221
Density / Sq Mi
$60,910
Median Household Income
$36,939
Median Earnings
$758
Median Rent
$192,900
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?
Creative space - Brick building with metal roof, central air, public utilities, and ample parking in a commercial-residential zoned area.
Where is this creative space located?
The property is located at 215 NW 3rd Avenue NW Arab, AL.
What is the asking price?
The asking price for this property is $96,900.
What are key features of this property?
This property features: Previously operated as a recording studio for the past 10 years; 636 SF brick building with metal roof and half bath on slab; 0.25‑acre lot with sidewalks and curb/gutters
