Medical Office Building For
For Sale
$1,575,000
300 1st Street North, Alabaster, AL 35007
100% occupied medical office building near Shelby Baptist Medical Center.
Property Size11,800 SF
Lot Size3.50 Acres
Days on Market196
Property Features for 300 1st Street North
General Information
Standard status
Active
Size
11,800 SF
Class
B
Lot size
3.50 Acres
Property subtype
Office
Building Details
Building Size
11,800 SF
Listing Agency:
Ironvest Partners
Listed By:
Bart Moore · License #0001434130
(205) 936-4041
Source:
Ironvestpartners
Added: Feb 25
Changed: Sep 8
Last Checked: Sep 8 at 5:11AM
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.
This is a rare opportunity to purchase a 100% occupied medical office building. The concrete frame, three-tenant building is located in Alabaster, AL, and sits on 3.5 acres. It is situated only 0.3 miles from Shelby Baptist Medical Center. The property offers the opportunity to significantly improve net operating income. Large parking areas are available in the front and rear of the building. The property has three long-term tenants.
Key Highlights
- 100% Occupied Medical Office Building
- Enjoy an attractive 8.07 CAP Rate
- Located just .3 Miles from Shelby Baptist Medical Center
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
$124,254
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
7.89%
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%
$2,485,080
$2.5M
Cap Rate 7%
$1,775,057
$1.8M
Cap Rate 9%
$1,380,600
$1.4M
Market Conditions
NOI Build-Up for 11,800 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
$212.4K $18.00/SF
− Vacancy
−$46.7K −$3.96/SF
EGI
$165.7K $14.04/SF
− OpEx
−$41.4K −$3.51/SF
NOI
$124.3K $10.53/SF
Area
Shelby County, AL
Vacancy
22.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$2,485,080
Cap Rate 7%
$1,775,057
Cap Rate 9%
$1,380,600
Alternative Uses
Best Use
Healthcare Medical
$2.28M
$2.00M – $2.66M
NOI $159,682 @ 7.0% cap · market cap 10.14%
Second Best
Office B
$1.78M
$1.55M – $2.07M
NOI $124,254 @ 7.0% cap · market cap 7.89%
Theoretical Best
Office A
$2.77M
$2.42M – $3.23M
NOI $193,879 @ 7.0% cap · market cap 12.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
852
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 35007, AL
28,274
Population
10,634
Households
2.7
Avg Household Size
38
Median Age
38%
College-Educated
92%
High-School Grad
39.0 sq mi
ZIP Area
725
Density / Sq Mi
$86,994
Median Household Income
$47,572
Median Earnings
$1,348
Median Rent
$231,800
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Medical Office Space - 100% occupied medical office building near Shelby Baptist Medical Center.
Where is this medical office space located?
The property is located at 300 1st Street North Alabaster, AL.
What is the asking price?
The asking price for this property is $1,575,000.
What are key features of this property?
This property features: 100% Occupied Medical Office Building; Enjoy an attractive **8.07 CAP Rate**; Located just .3 Miles from Shelby Baptist Medical Center
