9-Unit Apartment
For Sale
$739,900
Pending
27 Hwy 278, Cullman, AL 35055
Fully occupied property offers one- and two-bedroom apartments with shared laundry and basement storage.
Property Size8,320 SF
Days on Market352
Property Features for 27 Hwy 278
General Information
Standard status
Pending
Size
8,320 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$3,776
Building Details
Year Built
1900
Listing Agency:
Happy Homes Real Estate
(256) 339-5901
Listed By:
Crystal Parker · License #117120
(256) 339-5901
Source:
Exitrealty
Added: Sep 14, 2025
Changed: Aug 29
Last Checked: Aug 30 at 2:40PM
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 Happy Homes Real Estate
Investment Insights
Based on property information with market context.
This 9-unit apartment property includes four two-bedroom, one-bath apartments and five one-bedroom, one-bath apartments. Most units have received updates, including new HVAC units, decks, and interior improvements, while the property also benefits from a new roof. A basement laundry area serves residents, with additional storage and space for more washers and dryers.
The garage area includes an office and half bath and could be converted into a 10th unit. The property was built in 1900 and is located at 27 Hwy 278 near Lake Catoma in Cullman, Alabama. Utilities are provided through Cullman Power Board and Cullman City Water and Waste Management.
The garage area includes an office and half bath and could be converted into a 10th unit. The property was built in 1900 and is located at 27 Hwy 278 near Lake Catoma in Cullman, Alabama. Utilities are provided through Cullman Power Board and Cullman City Water and Waste Management.
Key Highlights
- 9 total units: 4 two‑bedroom, one‑bath apartments and 5 one‑bedroom, one‑bath apartments
- Fully rented apartment property near Lake Catoma
- New roof, HVAC units, decks, and interior updates on most units
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
$44,940
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
6.07%
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%
$898,800
$898.8K
Cap Rate 7%
$642,000
$642.0K
Cap Rate 9%
$499,333
$499.3K
Market Conditions
NOI Build-Up for 8,320 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
$87.9K $10.56/SF
− Vacancy
−$6.2K −$0.74/SF
EGI
$81.7K $9.82/SF
− OpEx
−$36.8K −$4.42/SF
NOI
$44.9K $5.40/SF
Area
Cullman County, AL
Vacancy
7.00%
Lease Rate
$10.56 /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%
$898,800
Cap Rate 7%
$642,000
Cap Rate 9%
$499,333
Alternative Uses
Best Use
Apartment 5plus
$642.0K
$561.8K – $749.0K
NOI $44,940 @ 7.0% cap · market cap 6.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.23M
$1.07M – $1.43M
NOI $85,862 @ 7.0% cap · market cap 11.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
92
Businesses Nearby
Explore this area
Business Placement
Demographics for 35055, AL
22,299
Population
10,664
Households
2.1
Avg Household Size
39
Median Age
26%
College-Educated
88%
High-School Grad
63.8 sq mi
ZIP Area
350
Density / Sq Mi
$58,488
Median Household Income
$40,079
Median Earnings
$934
Median Rent
$195,400
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 - Fully occupied property offers one- and two-bedroom apartments with shared laundry and basement storage.
Where is this apartment building located?
The property is located at 27 Hwy 278 Cullman, AL.
What is the asking price?
The asking price for this property is $739,900.
What are key features of this property?
This property features: 9 total units: 4 two‑bedroom, one‑bath apartments and 5 one‑bedroom, one‑bath apartments; Fully rented apartment property near Lake Catoma; New roof, HVAC units, decks, and interior updates on most units
