Historic Two-Story Office
New
For Sale
$1,986,753
414 Bank Street, Decatur, AL 35601
Former post office with finished lower-level space, existing kitchen and bathrooms, and a central setting near shops and restaurants.
Property Size7,800 SF
Price / SF$254.71
Days on Market5
Property Features for 414 Bank Street
General Information
Standard status
Active
Size
7,800 SF
Property subtype
Commercial Building
Amenities
kitchen
bathrooms
Lot Size Square Feet: 22440
Sewer Type: Municipal
Percentage of Tax that is Deductable: 0
Hardwood Floor, Carpet Floor, Tile Floor, Stone Floor
Has Central AC: 1
Pump Heating, AC Zones: 9, Electric Heat Fuel
Sale, Sale Type: Foreclosure, Availability Date: 2026-09-02
Finished, Kitchen, Area Square Footage: 3700
2 Stories, Built in 1922, Renovation Year: 2015, Pre-War Building
Neighborhood Name: Old Decatur
Property Zone Type: 200, Above Area Square Feet: 7800, Business Complex Name: Old Decatur Post Office
Handicap Features
Water Source: Municipal
Construction Type: Masonry - Brick
Corner Unit, Alarm
Building Details
Year Built
1922
Buildings
1
Stories
2
Listing Agency:
MARMAC COMMERCIAL REAL ESTATE
Listed By:
Mark Mizell · License #136684
(256) 214-2227
Source:
Doyle-realty
Added: Sep 2
Changed: Sep 5
Last Checked: Sep 5 at 3:14PM
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 MARMAC COMMERCIAL REAL ESTATE
Investment Insights
Based on property information with market context.
Built in 1922, this historic office building occupies two above-grade stories along with a full-sized finished basement. The former post office retains original hardwood flooring in select areas, complemented by carpeting throughout portions of the interior. A kitchen and bathrooms are already installed, supporting office occupancy, meetings, storage, and additional workspace within the existing layout.
The property is located at 414 Bank Street in Decatur, Alabama, within the town’s historic district and near local shops, restaurants, and other downtown amenities. Its period architecture and established interior improvements create a distinctive setting for professional or commercial operations while preserving the building’s connection to the community’s history.
The property is located at 414 Bank Street in Decatur, Alabama, within the town’s historic district and near local shops, restaurants, and other downtown amenities. Its period architecture and established interior improvements create a distinctive setting for professional or commercial operations while preserving the building’s connection to the community’s history.
Key Highlights
- 1922 historic office building in Decatur’s historic district
- Former post office with two stories and a full‑sized finished basement
- Original hardwood flooring combined with carpeted areas
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
$79,396
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
4.00%
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%
$1,587,920
$1.6M
Cap Rate 7%
$1,134,229
$1.1M
Cap Rate 9%
$882,178
$882.2K
Market Conditions
NOI Build-Up for 7,800 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
$135.7K $17.40/SF
− Vacancy
−$29.9K −$3.83/SF
EGI
$105.9K $13.57/SF
− OpEx
−$26.5K −$3.39/SF
NOI
$79.4K $10.18/SF
Area
Morgan County, AL
Vacancy
22.00%
Lease Rate
$17.40 /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%
$1,587,920
Cap Rate 7%
$1,134,229
Cap Rate 9%
$882,178
Alternative Uses
Best Use
Office B
$1.13M
$992.5K – $1.32M
NOI $79,396 @ 7.0% cap · market cap 4.00%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.62M
$1.42M – $1.89M
NOI $113,593 @ 7.0% cap · market cap 5.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
932
Businesses Nearby
Explore this area
Business Placement
Demographics for 35601, AL
34,958
Population
15,168
Households
2.3
Avg Household Size
38
Median Age
18%
College-Educated
77%
High-School Grad
26.5 sq mi
ZIP Area
1,319
Density / Sq Mi
$50,216
Median Household Income
$33,438
Median Earnings
$860
Median Rent
$148,100
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?
Office building - Former post office with finished lower-level space, existing kitchen and bathrooms, and a central setting near shops and restaurants.
Where is this office building located?
The property is located at 414 Bank Street Decatur, AL.
What is the asking price?
The asking price for this property is $1,986,753.
What are key features of this property?
This property features: 1922 historic office building in Decatur’s historic district; Former post office with two stories and a full‑sized finished basement; Original hardwood flooring combined with carpeted areas
