Southside Investment or Development
For Sale
$1,150,000
416 24th Street South, Birmingham, AL 35233
Prime location near Work Play and Iron City with established tenant.
Property Size4,982 SF
Lot Size0.48 Acres
Price / SF$233.64
Days on Market179
Property Features for 416 24th Street South
General Information
Standard status
Active
Size
4,982 SF
Lot size
0.48 Acres
Property subtype
Retail
Building Details
Building Size
4,982 SF
Year Built
1984
Listing Agency:
(205) 226-8625
Listed By:
Bill Gunn, SIOR, CCIM
Source:
Jhberry
Added: Mar 5
Changed: Aug 25
Last Checked: Aug 30 at 1:18PM
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 Bill Gunn, SIOR, CCIM
Investment Insights
Based on property information with market context.
This property presents an opportunity for investment or future development in the southside area. The site comprises two parcels, totaling approximately 0.48 acres or 21,000 square feet. Improvements include an existing building of approximately 4,922 square feet, along with a detached warehouse of approximately 864 square feet. An established tenant is currently in place. The property is located in the heart of the southside, one block from Work Play and Iron City, offering convenient access to Red Mountain Expressway and proximity to UAB and St. Vincent's.
Key Highlights
- Prime location in the heart of the southside, one block from Work Play and Iron City.
- Development site potential on a +/- .48 AC (21,000 SF) two‑parcel site.
- Existing +/- 4,922 SF building with an additional +/- 864 SF detached warehouse.
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
$48,105
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
4.18%
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%
$962,100
$962.1K
Cap Rate 7%
$687,214
$687.2K
Cap Rate 9%
$534,500
$534.5K
Market Conditions
NOI Build-Up for 4,922 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
$76.8K $15.60/SF
− Vacancy
−$8.1K −$1.64/SF
EGI
$68.7K $13.96/SF
− OpEx
−$20.6K −$4.19/SF
NOI
$48.1K $9.77/SF
Area
Birmingham, AL
Vacancy
10.50%
Lease Rate
$15.60 /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%
$962,100
Cap Rate 7%
$687,214
Cap Rate 9%
$534,500
Alternative Uses
Best Use
Retail
$687.2K
$601.3K – $801.8K
NOI $48,105 @ 7.0% cap · market cap 4.18%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.16M
$1.01M – $1.35M
NOI $80,870 @ 7.0% cap · market cap 7.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
492
Businesses Nearby
20k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 99%
Dining 1%
Dollar Tree
Shops & Services
10,184 visits/mo
0.4 miles
Dollar General
Shops & Services
8,029 visits/mo
0.5 miles
Regions Bank
Shops & Services
1,140 visits/mo
0.5 miles
Krispy Krunchy Chicken
Dining
204 visits/mo
0.1 miles
Demographics for 35233, AL
2,588
Population
2,710
Households
1
Avg Household Size
27
Median Age
90%
College-Educated
99%
High-School Grad
1.5 sq mi
ZIP Area
1,725
Density / Sq Mi
$52,207
Median Household Income
$48,750
Median Earnings
$1,526
Median Rent
$332,100
Median Home Value
Market
Vacancy Rate% for Retail in Birmingham, AL
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Prime location near Work Play and Iron City with established tenant.
Where is this retail space located?
The property is located at 416 24th Street South Birmingham, AL.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: Prime location in the heart of the southside, one block from Work Play and Iron City.; Development site potential on a +/- .48 AC (21,000 SF) two‑parcel site.; Existing +/- 4,922 SF building with an additional +/- 864 SF detached warehouse.
