Office Conversion Opportunity Near
For Sale
$550,000
315 Longwood Dr Sw, Huntsville, AL 35801
House near medical district suitable for office conversion.
Property Size2,050 SF
Lot Size0.26 Acres
Price / SF$268.29
Days on Market217
Property Features for 315 Longwood Dr Sw
General Information
Standard status
Active
Size
2,050 SF
Lot size
0.26 Acres
Property subtype
Business Opportunity
Listing Agency:
Russ Russell Real Estate
(256) 527-7777
Listed By:
Russ Russell · License #25965
(256) 527-7777
Source:
Exprealty
Added: Jan 26
Changed: Aug 8
Last Checked: Aug 23 at 5:03AM
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 Russ Russell Real Estate
Investment Insights
Based on property information with market context.
This property, zoned RO2 (Residential Office 2 District) and situated on 0.26 acres, presents an opportunity for conversion to office space. Located near the medical district and directly behind the UAB Medical Building on Governor's Drive, the property contains 2,050 square feet. The existing layout includes 3 bedrooms, 2 baths, a kitchen, a den, and additional space. The property can be purchased together with the adjacent property at 317 Longwood Drive, which is situated on approximately 0.28 acres.
Key Highlights
- Zoned RO2, this property offers potential for conversion to office space.
- Located near the medical district and directly behind UAB Medical Building on Governor's Drive.
- Features 2,050 SF of space with 3 bedrooms and 2 baths.
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
$26,190
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
4.76%
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%
$523,800
$523.8K
Cap Rate 7%
$374,143
$374.1K
Cap Rate 9%
$291,000
$291.0K
Market Conditions
NOI Build-Up for 2,050 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
$41.1K $20.04/SF
− Vacancy
−$6.2K −$3.01/SF
EGI
$34.9K $17.03/SF
− OpEx
−$8.7K −$4.26/SF
NOI
$26.2K $12.78/SF
Area
Huntsville, AL
Vacancy
15.00%
Lease Rate
$20.04 /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%
$523,800
Cap Rate 7%
$374,143
Cap Rate 9%
$291,000
Alternative Uses
Best Use
Office B
$374.1K
$327.4K – $436.5K
NOI $26,190 @ 7.0% cap · market cap 4.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$533.8K
$467.1K – $622.8K
NOI $37,367 @ 7.0% cap · market cap 6.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,263
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 35801, AL
22,539
Population
11,225
Households
2
Avg Household Size
43
Median Age
55%
College-Educated
90%
High-School Grad
13.8 sq mi
ZIP Area
1,633
Density / Sq Mi
$103,125
Median Household Income
$60,370
Median Earnings
$1,130
Median Rent
$399,700
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.
Similar Off Market Nearby
- MyPhone Repair - Phone & Tablet Repair — 2801 Memorial Pkwy SW #162A, Huntsville, AL 35801
- Express Toners & More - The Printer Connection — 2809 Newby Rd SW #118, Huntsville, AL 35805
- Professional Communication Services — 101 Bob Wallace Ave SW # B1, Huntsville, AL 35801
- uBreakiFix - Phone and Computer Repair — 2317 Memorial Pkwy SW Suite 125, Huntsville, AL 35801
- Office Depot Tech Services — 2306 Memorial Pkwy SW, Huntsville, AL 35801
Frequently Asked Questions
What type of property is this?
Office space - House near medical district suitable for office conversion.
Where is this office space located?
The property is located at 315 Longwood Dr Sw Huntsville, AL.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Zoned RO2, this property offers potential for conversion to office space.; Located near the medical district and directly behind UAB Medical Building on Governor's Drive.; Features 2,050 SF of space with 3 bedrooms and 2 baths.
