Office Conversion
For Sale
$550,000
315 Longwood Drive, Huntsville, AL 35801
Business Opportunity, Huntsville, AL
Property Size2,050 SF
Lot Size0.26 Acres
Price / SF$268.29
Days on Market92
Property Features for 315 Longwood Drive
General Information
Property type
Residential
Property subtype
Office
Zoning description
Business, Commercial
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 1, Bathroom 2
Directions
From Mem. Pkwy., Right On Governors Dr., Right On Harvard Dr., Left On Longwood Dr. 2nd House On The Right.
Standard status
Active
APN
1701013001004.000
Size
2,050 SF
Lot size
0.26 Acres
Utilities
Sewer type
Public Sewer
Heating system
Central
Cooling system
Central Air
Water source
Public
Building Details
Year built
1950
Floors in Building
1
Flooring type
Wood
Roof type
Shingle
Listing Agency:
Russ Russell Real Estate
(256) 536-7777
Listed By:
Russ Russell · License #25965
(256) 527-7777
Added: Jun 4
Changed: Aug 20
Last Checked: Sep 3 at 1:06PM
MLS# 21919950
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Investment Insights
Based on property information with market context.
This 2,050-square-foot property is an existing house positioned for conversion to office space. The layout includes three bedrooms, two bathrooms, a kitchen, den, and additional interior space. Wood flooring, central heating, central air, a shingle roof, and public water and sewer are present. Built in 1950, the building offers a residential-scale configuration that can be adapted to office use under its RO2 Residential Office 2 District zoning.
The property occupies 0.26 acres near Huntsville’s medical district and is directly behind the UAB Medical Building on Governor’s Drive. Its location and existing interior arrangement provide a defined starting point for an office conversion project.
The property occupies 0.26 acres near Huntsville’s medical district and is directly behind the UAB Medical Building on Governor’s Drive. Its location and existing interior arrangement provide a defined starting point for an office conversion project.
Key Highlights
- 2,050 SF building on 0.26 acres
- Zoned RO2 (Residential Office 2 District)
- Three bedrooms, two baths, kitchen, den, and extra space
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
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.
Frequently Asked Questions
What type of property is this?
Office building - RO2 zoning and a residential-style layout support potential office conversion.
Where is this office building located?
The property is located at 315 Longwood Drive 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: 2,050 SF building on 0.26 acres; Zoned RO2 (Residential Office 2 District); Three bedrooms, two baths, kitchen, den, and extra space
