Multifamily Property in Opportunity
For Sale
$175,000
4016 38TH AVENUE N, Birmingham, AL 35217
Multifamily property in Birmingham's opportunity zone, do not disturb tenants.
Property Size1,756 SF
Price / SF$99.66
Days on Market215
Property Features for 4016 38TH AVENUE N
General Information
Standard status
Active
Size
1,756 SF
Property subtype
Duplex
Amenities
Cable Ready
Cooling: Ceiling Fans, Central Control (COOL), Electric (COOL)
Heating: Central Control (HEAT), Gas Heat
Pool
Building Details
Building Size
1,756 SF
Year Built
1986
Listing Agency:
Keller Williams Realty Vestavia
Listed By:
Ashleigh Timmerman · License #90358
(205) 243-8590
Source:
Kw
Added: Feb 1
Changed: Sep 3
Last Checked: Aug 12 at 6:28AM
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 Keller Williams Realty Vestavia
Investment Insights
Based on property information with market context.
This multifamily property, encompassing 1756 square feet, is located in an opportunity zone. Please do not disturb the tenants.
Key Highlights
- Great property.
- Located in an opportunity zone.
- Year Built: 1986.
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
$12,663
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
7.24%
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%
$253,260
$253.3K
Cap Rate 7%
$180,900
$180.9K
Cap Rate 9%
$140,700
$140.7K
Market Conditions
NOI Build-Up for 1,756 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
$25.5K $14.52/SF
− Vacancy
−$2.5K −$1.41/SF
EGI
$23.0K $13.11/SF
− OpEx
−$10.4K −$5.90/SF
NOI
$12.7K $7.21/SF
Area
Birmingham, AL
Vacancy
9.70%
Lease Rate
$14.52 /SF/Yr
Expense Ratio
45.00%
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%
$253,260
Cap Rate 7%
$180,900
Cap Rate 9%
$140,700
Alternative Uses
Best Use
Apartment 5plus
$180.9K
$158.3K – $211.1K
NOI $12,663 @ 7.0% cap · market cap 7.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$412.2K
$360.7K – $480.9K
NOI $28,852 @ 7.0% cap · market cap 16.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
214
Businesses Nearby
Explore this area
Business Placement
Demographics for 35217, AL
12,891
Population
6,196
Households
2.1
Avg Household Size
39
Median Age
11%
College-Educated
78%
High-School Grad
17.7 sq mi
ZIP Area
728
Density / Sq Mi
$38,769
Median Household Income
$31,210
Median Earnings
$835
Median Rent
$113,800
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?
Multifamily property - Multifamily property in Birmingham's opportunity zone, do not disturb tenants.
Where is this multifamily property located?
The property is located at 4016 38TH AVENUE N Birmingham, AL.
What is the asking price?
The asking price for this property is $175,000.
What are key features of this property?
This property features: Great property.; Located in an opportunity zone.; Year Built: 1986.
