Prime Storefront in Loft
For Sale
$2,100,000
2420 1st Ave N, Birmingham, AL 35203
Street-level storefront with multi-tenant flexibility and strong visibility.
Property Size20,100 SF
Price / SF$104.48
Days on Market276
Property Features for 2420 1st Ave N
General Information
Standard status
Active
Size
20,100 SF
Property subtype
Retail
Building Details
Building Size
20,100 SF
Year Built
1925
Listing Agency:
Ironvest Partners
(678) 577-2748
Listed By:
Jordan Weaver · License #AL #000126065-0
Source:
Ironvestpartners
Added: Nov 21, 2025
Changed: Aug 22
Last Checked: Aug 24 at 4:17AM
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 Ironvest Partners
Investment Insights
Based on property information with market context.
Located on the corner of 1st Avenue North and 25th Street North, this property offers prime space for a street-level storefront presence, providing multi-tenant flexibility and strong visibility. Situated in Birmingham's historic Loft District on 1st Avenue North, the location provides access to restaurants, bars, coffee shops, and entertainment venues. The property is surrounded by a mix of residential and commercial activity in one of Birmingham's walkable neighborhoods. The property includes dedicated parking with 25 spaces and an existing drive-thru with entrance from 1st Avenue. The property benefits from a strategic corner lot with dual frontage on two major streets, amplifying exposure. The location is highly walkable and surrounded by successful businesses, including dining options and coffee shops. The property features an open layout with high ceilings. The property size is 20100 square feet.
Key Highlights
- Prime corner lot location with dual frontage on two major streets providing strong visibility.
- Located in Birmingham's historic Loft District, offering unmatched access to top restaurants, bars, coffee shops, and entertainment venues.
- Dedicated parking with 25 spaces.
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
$92,389
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
4.40%
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%
$1,847,780
$1.8M
Cap Rate 7%
$1,319,843
$1.3M
Cap Rate 9%
$1,026,544
$1.0M
Market Conditions
NOI Build-Up for 20,100 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
$144.7K $7.20/SF
− Vacancy
−$12.7K −$0.63/SF
EGI
$132.0K $6.57/SF
− OpEx
−$39.6K −$1.97/SF
NOI
$92.4K $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%
$1,847,780
Cap Rate 7%
$1,319,843
Cap Rate 9%
$1,026,544
Alternative Uses
Best Use
Specialty Retail
$3.57M
$3.12M – $4.16M
NOI $249,642 @ 7.0% cap · market cap 11.89%
Second Best
Retail
$2.81M
$2.46M – $3.27M
NOI $196,445 @ 7.0% cap · market cap 9.35%
Theoretical Best
Office A
$4.72M
$4.13M – $5.50M
NOI $330,251 @ 7.0% cap · market cap 15.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
374
Businesses Nearby
Balanced
Demand for This Use
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 Retail in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Street-level storefront with multi-tenant flexibility and strong visibility.
Where is this storefront property located?
The property is located at 2420 1st Ave N Birmingham, AL.
What is the asking price?
The asking price for this property is $2,100,000.
What are key features of this property?
This property features: Prime corner lot location with dual frontage on two major streets providing **strong visibility**.; Located in Birmingham's historic Loft District, offering unmatched access to top restaurants, bars, coffee shops, and entertainment venues.; Dedicated parking with **25 spaces**.
