Updated Four-Unit Multifamily
For Sale
$550,000
3504 Penny Street SW, Huntsville, AL 35805
Residential Income, Huntsville, AL
Property Size4,428 SF
Lot Size0.30 Acres
Price / SF$124.21
Days on Market112
Property Features for 3504 Penny Street SW
General Information
Property type
Residential Multi Family
Property subtype
Other
Parking
4
Parking features
Parking Lot
Appliances
Oven, Refrigerator, Dishwasher, Washer, Dryer, Disposal
Subdivision
Pinecrest
Elementary school
Ridgecrest
Middle school
Williams
High school
Columbia High
Directions
Memorial Parkway; West On Drake Ave; Right On Penny St.; Property On Corner Of Cerro Vista And Penny St.
Standard status
Active
APN
1702103004003000
Size
4,428 SF
Lot size
0.30 Acres
Utilities
Sewer type
Public Sewer
Heating system
Central, Electric (Heating)
Cooling system
Central Air
Water source
Public
Building Details
Year built
1960
Number of units
4
Listing Agency:
Capstone Realty LLC Huntsville
(256) 678-7045
Listed By:
Ben Nemec · License #100792
(256) 361-5593
Added: May 14
Changed: Sep 2
Last Checked: Sep 2 at 4:06PM
MLS# 21910296
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Investment Insights
Based on property information with market context.
This four-unit multifamily property contains 4,428 square feet on a 0.3-acre lot and was built in 1960. Recent improvements include a roof installed 2 years ago, a fully renovated Unit A with updated plumbing, and new laundry appliances in that unit. Unit C has a newer kitchen counter and water heater, while Unit B includes two replacement windows. Three units received new refrigerators within the last 1–2.5 years. The property includes a parking lot, central air, central electric heating, and public water and sewer.
The property is located at 3504 Penny Street SW in Huntsville, Alabama, with Redstone Arsenal, shopping, dining, entertainment, and downtown Huntsville identified in the surrounding context. Downtown Huntsville is 5 minutes away.
The property is located at 3504 Penny Street SW in Huntsville, Alabama, with Redstone Arsenal, shopping, dining, entertainment, and downtown Huntsville identified in the surrounding context. Downtown Huntsville is 5 minutes away.
Key Highlights
- Four‑unit multifamily property with 4,428 SF on a 0.3‑acre lot
- Roof replaced 2 years ago
- Unit A fully renovated with updated plumbing and new washer and dryer
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
$32,302
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
5.87%
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%
$646,040
$646.0K
Cap Rate 7%
$461,457
$461.5K
Cap Rate 9%
$358,911
$358.9K
Market Conditions
NOI Build-Up for 4,428 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
$55.8K $12.60/SF
− Vacancy
−$9.6K −$2.18/SF
EGI
$46.1K $10.42/SF
− OpEx
−$13.8K −$3.13/SF
NOI
$32.3K $7.30/SF
Area
Huntsville, AL
Vacancy
17.29%
Lease Rate
$12.60 /SF/Yr
Expense Ratio
30.00%
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%
$646,040
Cap Rate 7%
$461,457
Cap Rate 9%
$358,911
Alternative Uses
Best Use
Multifamily LT 5
$461.5K
$403.8K – $538.4K
NOI $32,302 @ 7.0% cap · market cap 5.87%
Second Best
Apartment 5plus
$399.6K
$349.6K – $466.2K
NOI $27,970 @ 7.0% cap · market cap 5.09%
Theoretical Best
Office A
$1.15M
$1.01M – $1.35M
NOI $80,714 @ 7.0% cap · market cap 14.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
146
Businesses Nearby
Explore this area
Business Placement
Demographics for 35805, AL
23,189
Population
10,618
Households
2.2
Avg Household Size
31
Median Age
18%
College-Educated
78%
High-School Grad
9.2 sq mi
ZIP Area
2,521
Density / Sq Mi
$31,247
Median Household Income
$26,824
Median Earnings
$800
Median Rent
$108,200
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Quadplex - Four-unit residential income property with recent roof, interior, appliance, plumbing, and window improvements.
Where is this quadplex located?
The property is located at 3504 Penny Street 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: Four‑unit multifamily property with 4,428 SF on a 0.3‑acre lot; Roof replaced 2 years ago; Unit A fully renovated with updated plumbing and new washer and dryer
