Renovated Office
New
For Sale
$314,900
414 Hargrove E Road, Tuscaloosa, AL 35401
Updated office property with on-site parking and access near the University of Alabama.
Property Size1,399 SF
Price / SF$225.09
Days on Market6
Property Features for 414 Hargrove E Road
General Information
Standard status
Active
Size
1,399 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$1,661
Building Details
Year Built
1950
Buildings
1
Listing Agency:
Advantage Realty Group
(205) 799-5844
Listed By:
Zeke Zeanah
(205) 799-5844
Source:
Exitrealty
Added: Aug 18
Changed: Aug 22
Last Checked: Aug 22 at 4:04AM
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 Advantage Realty Group
Investment Insights
Based on property information with market context.
Originally built in 1950, this office property is housed in a renovated former residence-style building. Improvements include a new roof, electrical and plumbing updates, replacement windows, updated fixtures and countertops, fresh interior and exterior paint, and refinished floors. A central A/C system installed approximately 7 years ago serves the building, and on-site parking is available.
The property is located off McFarland Boulevard, approximately 1.5 miles from the University of Alabama in Tuscaloosa. Its office configuration, renovation work, and proximity to the university support a range of professional office applications.
The property is located off McFarland Boulevard, approximately 1.5 miles from the University of Alabama in Tuscaloosa. Its office configuration, renovation work, and proximity to the university support a range of professional office applications.
Key Highlights
- Renovated office building originally constructed in 1950
- New roof, electrical, plumbing, windows, fixtures, and countertops
- Fresh interior and exterior paint with refinished floors
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
$16,205
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
5.15%
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%
$324,100
$324.1K
Cap Rate 7%
$231,500
$231.5K
Cap Rate 9%
$180,056
$180.1K
Market Conditions
NOI Build-Up for 1,399 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
$27.7K $19.80/SF
− Vacancy
−$6.1K −$4.36/SF
EGI
$21.6K $15.44/SF
− OpEx
−$5.4K −$3.86/SF
NOI
$16.2K $11.58/SF
Area
Tuscaloosa, AL
Vacancy
22.00%
Lease Rate
$19.80 /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%
$324,100
Cap Rate 7%
$231,500
Cap Rate 9%
$180,056
Alternative Uses
Best Use
Office B
$231.5K
$202.6K – $270.1K
NOI $16,205 @ 7.0% cap · market cap 5.15%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$336.2K
$294.2K – $392.2K
NOI $23,533 @ 7.0% cap · market cap 7.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
752
Businesses Nearby
Explore this area
Business Placement
Demographics for 35401, AL
41,852
Population
19,517
Households
2.1
Avg Household Size
26
Median Age
27%
College-Educated
85%
High-School Grad
40.1 sq mi
ZIP Area
1,044
Density / Sq Mi
$30,031
Median Household Income
$13,041
Median Earnings
$911
Median Rent
$141,100
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 - Updated office property with on-site parking and access near the University of Alabama.
Where is this office building located?
The property is located at 414 Hargrove E Road Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $314,900.
What are key features of this property?
This property features: Renovated office building originally constructed in 1950; New roof, electrical, plumbing, windows, fixtures, and countertops; Fresh interior and exterior paint with refinished floors
