1031 Exchange
For Sale
$599,000
2531 University Boulevard, Tuscaloosa, AL 35401
COMMERCIAL - Tuscaloosa, AL
Property Size1,750 SF
Lot Size0.05 Acres
Price / SF$342.29
Days on Market182
Property Features for 2531 University Boulevard
General Information
Property type
Commercial Sale
Property subtype
Other
Property condition
Under Construction
Directions
Downtown Rock Point building on University Boulevard between the two Lurleen Wallace Boulevards across from Renesant Bank
Subdivision
(02) Central Tuscaloosa City
Standard status
Active
APN
31-05-22-2-209-014.000
Size
1,750 SF
Lot size
0.05 Acres
Taxes and HOA fees
Tax Description
Unit 3 &4 In Downtown Rock Point Condominium
Tax Annual Amount
4892
HOA Fee
$600 Monthly
Legal Description
Unit 3 &4 In Downtown Rock Point Condominium
Utilities
Heating system
Central, Natural Gas, Electric (Heating)
Cooling system
Central Air
Building Details
Year built
2025
Number of units
2
Flooring type
Tile, Concrete
Building materials
Brick
Listing Agency:
Keller Williams Tuscaloosa · Keller Williams Realty
(205) 759-3400
Listed By:
Lee Foster · License #0001282800
(205) 657-1997
Added: Feb 18
Changed: Aug 19
Last Checked: Aug 19 at 7:06PM
MLS# 173416
Copyright © 2026 West Alabama Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1,750-square-foot brick retail property occupies a 0.05-acre parcel at 2531 University Boulevard in Tuscaloosa. Interior finishes include tile and concrete flooring, while central air conditioning and central heating support the building. Heating service includes natural gas and electric components.
The property is leased for five years, with the lease entering its second year and a 10% increase scheduled at renewal. The investment carries a 5.49% cap rate and is located in downtown Tuscaloosa. Its commercial configuration and existing lease structure support consideration for an exchange-oriented acquisition.
The property is leased for five years, with the lease entering its second year and a 10% increase scheduled at renewal. The investment carries a 5.49% cap rate and is located in downtown Tuscaloosa. Its commercial configuration and existing lease structure support consideration for an exchange-oriented acquisition.
Key Highlights
- 1,750 square feet on a 0.05‑acre parcel
- Five‑year lease beginning its second year
- 10% increase at renewal
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
$19,652
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
3.28%
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%
$393,040
$393.0K
Cap Rate 7%
$280,743
$280.7K
Cap Rate 9%
$218,356
$218.4K
Market Conditions
NOI Build-Up for 1,750 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
$30.4K $17.40/SF
− Vacancy
−$2.4K −$1.36/SF
EGI
$28.1K $16.04/SF
− OpEx
−$8.4K −$4.81/SF
NOI
$19.7K $11.23/SF
Area
Tuscaloosa, AL
Vacancy
7.80%
Lease Rate
$17.40 /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%
$393,040
Cap Rate 7%
$280,743
Cap Rate 9%
$218,356
Alternative Uses
Best Use
Retail
$280.7K
$245.7K – $327.5K
NOI $19,652 @ 7.0% cap · market cap 3.28%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$420.5K
$368.0K – $490.6K
NOI $29,438 @ 7.0% cap · market cap 4.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,690
Businesses Nearby
132k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 73%
Hotels & Casinos 14%
Shops & Services 14%
Half Shell Oyster House
Dining
15,296 visits/mo
0.2 miles
Hardee's
Dining
13,763 visits/mo
0.4 miles
Dunkin' Donuts
Dining
13,381 visits/mo
0.3 miles
Burger King
Dining
12,540 visits/mo
0.4 miles
Taco Bell
Dining
12,264 visits/mo
0.3 miles
Demographics for 35401, AL
41,852
Population
19,517
Households
2.1
Avg Household Size
26
Median Age
27%
College-Educated
85%
High-School Grad
40.1 sq mi
ZIP Area
1,044
Density / Sq Mi
$30,031
Median Household Income
$13,041
Median Earnings
$911
Median Rent
$141,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
1031 exchange property - Brick retail asset with central HVAC, tile and concrete flooring, and a five-year lease structure.
Where is this 1031 exchange property located?
The property is located at 2531 University Boulevard Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: 1,750 square feet on a 0.05‑acre parcel; Five‑year lease beginning its second year; 10% increase at renewal
