Midtown Investment
For Sale
$600,000
266 Rickarby Street ST, Mobile, AL 36606
Two buildings with six fully leased units in Midtown Mobile.
Property Size3,576 SF
Price / SF$167.79
Days on Market139
Property Features for 266 Rickarby Street ST
General Information
Standard status
Active
Size
3,576 SF
Property subtype
Multi Family
Taxes and HOA fees
Annual Taxes
$1,079
Building Details
Year Built
1981
Listing Agency:
L L B & B, Inc.
(251) 709-4736
Listed By:
Melissa Morrissette · License #76258
(251) 709-4736
Source:
Exitrealty
Added: Mar 25
Changed: Aug 8
Last Checked: Aug 10 at 3:23AM
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 L L B & B, Inc.
Investment Insights
Based on property information with market context.
Located in Midtown, this investment opportunity at 266 Rickarby Street features two separate 3-unit apartment buildings situated just south of Government Street, providing convenient access to major thoroughfares. The property comprises six fully occupied units, offering immediate rental income. The unit mix includes four 2-bedroom, 1-bath apartments and two 1-bedroom, 1-bath apartments. Each unit is equipped with hardwood floors and window HVAC units for heating and cooling. The property is serviced by gas, electricity, city water, and city sewer. All apartments are currently leased, with rents ranging from $500 to $800 per month, and one unit participating in the Section 8 program. Located close to the Loop, the property offers easy access to shopping, dining, and major routes throughout the city, and is just minutes from downtown Mobile. With two buildings, six fully leased units, and a strong rental location, this property presents an opportunity for investors seeking a stable, income-producing asset. The property size is 3576 square feet.
Key Highlights
- Six fully occupied units providing immediate rental income.
- Convenient Midtown location with easy access to Government Street and major thoroughfares.
- Two separate 3‑unit apartment buildings included in the sale.
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
$29,632
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
4.94%
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%
$592,640
$592.6K
Cap Rate 7%
$423,314
$423.3K
Cap Rate 9%
$329,244
$329.2K
Market Conditions
NOI Build-Up for 3,576 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
$57.9K $16.20/SF
− Vacancy
−$4.1K −$1.13/SF
EGI
$53.9K $15.07/SF
− OpEx
−$24.2K −$6.78/SF
NOI
$29.6K $8.29/SF
Area
Mobile, AL
Vacancy
7.00%
Lease Rate
$16.20 /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%
$592,640
Cap Rate 7%
$423,314
Cap Rate 9%
$329,244
Alternative Uses
Best Use
Apartment 5plus
$423.3K
$370.4K – $493.9K
NOI $29,632 @ 7.0% cap · market cap 4.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$908.9K
$795.3K – $1.06M
NOI $63,623 @ 7.0% cap · market cap 10.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
754
Businesses Nearby
Explore this area
Business Placement
Demographics for 36606, AL
19,042
Population
9,129
Households
2.1
Avg Household Size
35
Median Age
29%
College-Educated
89%
High-School Grad
6.8 sq mi
ZIP Area
2,800
Density / Sq Mi
$49,561
Median Household Income
$37,094
Median Earnings
$938
Median Rent
$141,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Two buildings with six fully leased units in Midtown Mobile.
Where is this apartment building located?
The property is located at 266 Rickarby Street ST Mobile, AL.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: Six fully occupied units providing immediate rental income.; Convenient Midtown location with easy access to Government Street and major thoroughfares.; Two separate 3‑unit apartment buildings included in the sale.
