Mixed-Use Asset in Downtown
For Sale
$1,400,000
31 NW 8th St, Arab, AL 35016
Mixed-use property with apartments and office/storefront spaces in Arab, Alabama.
Property Size17,561 SF
Price / SF$79.72
Days on Market276
Property Features for 31 NW 8th St
General Information
Standard status
Active
Size
17,561 SF
Property subtype
Multifamily
Building Details
Building Size
17,561 SF
Year Built
1930
Listing Agency:
SVN | AVAT Realty, LLC
(256) 653-0065
Listed By:
Andrew Agee · License #000124758
(256) 653-0065
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 15
Last Checked: Aug 23 at 3:59AM
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 SVN | AVAT Realty, LLC
Investment Insights
Based on property information with market context.
Main Street Plaza and Lofts presents an opportunity to acquire a mixed-use asset situated in the bustling downtown area of Arab, Alabama, approximately one hour south of Huntsville. The property includes 12 apartment units, consisting of 9 one-bedroom/one-bathroom units, and one unit each with 2, 3, and 4 bedrooms. Additionally, there are 13 office/storefront spaces, each measuring 795 square feet, located on a walkable downtown street. The property is located in the central business district of downtown Arab and has a total size of 17561 square feet.
Key Highlights
- Mixed‑use asset offering both residential and commercial income streams. Features 12 apartment units and 13 office/storefront spots.
- Located in the heart of downtown Arab, Alabama's central business district. Enjoy a walkable downtown street location.
- Benefit from proximity to the fast‑growing market of Huntsville, Alabama.
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
$98,386
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
7.03%
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%
$1,967,720
$2.0M
Cap Rate 7%
$1,405,514
$1.4M
Cap Rate 9%
$1,093,178
$1.1M
Market Conditions
NOI Build-Up for 17,561 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
$174.9K $9.96/SF
− Vacancy
−$17.5K −$1.00/SF
EGI
$157.4K $8.96/SF
− OpEx
−$59.0K −$3.36/SF
NOI
$98.4K $5.60/SF
Area
Marshall County, AL
Vacancy
10.00%
Lease Rate
$9.96 /SF/Yr
Expense Ratio
37.50%
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%
$1,967,720
Cap Rate 7%
$1,405,514
Cap Rate 9%
$1,093,178
Alternative Uses
Best Use
Office B
$2.83M
$2.47M – $3.30M
NOI $197,956 @ 7.0% cap · market cap 14.14%
Second Best
Mixed Use
$1.41M
$1.23M – $1.64M
NOI $98,386 @ 7.0% cap · market cap 7.03%
Theoretical Best
Office A
$3.79M
$3.32M – $4.42M
NOI $265,320 @ 7.0% cap · market cap 18.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
184
Businesses Nearby
Explore this area
Business Placement
Demographics for 35016, AL
17,495
Population
7,372
Households
2.4
Avg Household Size
42
Median Age
22%
College-Educated
89%
High-School Grad
79.0 sq mi
ZIP Area
221
Density / Sq Mi
$60,910
Median Household Income
$36,939
Median Earnings
$758
Median Rent
$192,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property with apartments and office/storefront spaces in Arab, Alabama.
Where is this mixed-use property located?
The property is located at 31 NW 8th St Arab, AL.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: Mixed‑use asset offering both residential and commercial income streams. Features 12 apartment units and 13 office/storefront spots.; Located in the heart of downtown Arab, Alabama's central business district. Enjoy a walkable downtown street location.; Benefit from proximity to the fast‑growing market of Huntsville, Alabama.
