Stylish Loft on Historic
For Sale
$239,900
2327 MORRIS AVENUE #3B, Birmingham, AL 35203
Furnished loft with historic charm, perfect for short-term rental.
Property Size1,039 SF
Days on Market468
Property Features for 2327 MORRIS AVENUE #3B
General Information
Standard status
Active
Size
1,039 SF
Property subtype
Condominium
Amenities
Security System
Cooling: Heat Pump (COOL)
Heating: Heat Pump (HEAT)
Cooktop-Electric, Dishwasher Built-In, Microwave Built-In, Oven-Electric, Refrigerator, Self-Cleaning, Some Stainless Appl
Building Details
Building Size
1,039 SF
Year Built
1910
Listing Agency:
Keller Williams Realty
Listed By:
Jasper Cleage · License #134245
(205) 305-4780
Source:
Kw
Added: May 31, 2025
Changed: Aug 28
Last Checked: Sep 9 at 8:38PM
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 Realty
Investment Insights
Based on property information with market context.
This stylish loft, located on historic Morris Avenue, features over 1,000 square feet of downtown living space. The property includes one bedroom and one bathroom. It boasts soaring ceilings, exposed brick, and oversized windows that provide ample natural light. Renovated with modern style while retaining its historic charm, this third-floor unit features a sleek kitchen, a refreshed bathroom, and curated furnishings, all of which are included in the sale. The property is suitable for walkable city living, a low-maintenance retreat, or a turnkey investment. Currently, the unit operates as a successful short-term rental in a downtown Birmingham building with no short-term rental restrictions. It is being offered fully furnished and move-in-ready.
Key Highlights
- Fully furnished, move‑in‑ready loft with curated furnishings included.
- Successful short‑term rental with no STR restrictions.
- Seller offering up to $10,000 toward closing costs AND a 1‑year home warranty.
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
$7,493
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
3.12%
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%
$149,860
$149.9K
Cap Rate 7%
$107,043
$107.0K
Cap Rate 9%
$83,256
$83.3K
Market Conditions
NOI Build-Up for 1,039 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
$15.1K $14.52/SF
− Vacancy
−$1.5K −$1.41/SF
EGI
$13.6K $13.11/SF
− OpEx
−$6.1K −$5.90/SF
NOI
$7.5K $7.21/SF
Area
Birmingham, AL
Vacancy
9.70%
Lease Rate
$14.52 /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%
$149,860
Cap Rate 7%
$107,043
Cap Rate 9%
$83,256
Alternative Uses
Best Use
Apartment 5plus
$107.0K
$93.7K – $124.9K
NOI $7,493 @ 7.0% cap · market cap 3.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$243.9K
$213.4K – $284.5K
NOI $17,071 @ 7.0% cap · market cap 7.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
6,062
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
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Short term rental property - Furnished loft with historic charm, perfect for short-term rental.
Where is this short term rental property located?
The property is located at 2327 MORRIS AVENUE #3B Birmingham, AL.
What is the asking price?
The asking price for this property is $239,900.
What are key features of this property?
This property features: Fully furnished, move‑in‑ready loft with curated furnishings included.; Successful short‑term rental with no STR restrictions.; Seller offering up to $10,000 toward closing costs AND a 1‑year home warranty.
