Renovated Apartment Income
For Sale
Contact for pricing
500 Tuscaloosa Ave, Birmingham, AL 35211
Twenty-unit apartment complex with all 2/1 units and 17 renovated units featuring new HVAC and tankless water heaters.
Property Size18,000 SF
Price / SF$105.56
Days on Market150
Property Features for 500 Tuscaloosa Ave
General Information
Standard status
Active
Size
18,000 SF
Class
C
Property subtype
Multifamily
Zoning
Residential
Occupancy
95%
Investment Type
Stabilized
Net Operating Income
$118,800
Additional Details
Multifamily Units
20
Building Details
Year Built
1978
Buildings
1
Units
20
Tenancy
Single
Listing Agency:
First Class Realty Services, LLC
Listed By:
Shayla Dotson · License #AL 105931
(205) 225-1239
Source:
Crexi
Added: Apr 9
Changed: Sep 2
Last Checked: Sep 5 at 10:55AM
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 First Class Realty Services, LLC
Investment Insights
Based on property information with market context.
500 Tuscaloosa Ave is a 20-unit income-producing apartment complex in Birmingham, with all units configured as 2/1. Seventeen of the units have been fully renovated between 2022 and present, including updated interiors with new flooring, cabinetry, and appliances, as well as major system upgrades.
The renovated units have new HVAC systems and tankless water heaters, and the property includes washer and dryer connections in-unit. Current occupancy is primarily stabilized, with 19 income-producing units and 1 unit ready for lease or renovation completion. Two additional units are positioned for full renovation.
Current rent roll is approximately $16,500 per month, and professional management is in place.
The renovated units have new HVAC systems and tankless water heaters, and the property includes washer and dryer connections in-unit. Current occupancy is primarily stabilized, with 19 income-producing units and 1 unit ready for lease or renovation completion. Two additional units are positioned for full renovation.
Current rent roll is approximately $16,500 per month, and professional management is in place.
Key Highlights
- 20‑unit apartment complex (all 2/1 units) built in 1978 in Birmingham, AL
- 17 units renovated between 2022–present with updated interiors, new flooring, cabinetry, and appliances
- Renovated units include new HVAC systems and tankless water heaters
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
$129,804
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
6.83%
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%
$2,596,080
$2.6M
Cap Rate 7%
$1,854,343
$1.9M
Cap Rate 9%
$1,442,267
$1.4M
Market Conditions
NOI Build-Up for 18,000 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
$261.4K $14.52/SF
− Vacancy
−$25.4K −$1.41/SF
EGI
$236.0K $13.11/SF
− OpEx
−$106.2K −$5.90/SF
NOI
$129.8K $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%
$2,596,080
Cap Rate 7%
$1,854,343
Cap Rate 9%
$1,442,267
Alternative Uses
Best Use
Apartment 5plus
$1.85M
$1.62M – $2.16M
NOI $129,804 @ 7.0% cap · market cap 6.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.22M
$3.70M – $4.93M
NOI $295,747 @ 7.0% cap · market cap 15.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20
Residential units
Location Intelligence
Trade Area within ½ mile
984
Businesses Nearby
Explore this area
Business Placement
Demographics for 35211, AL
24,775
Population
14,302
Households
1.7
Avg Household Size
40
Median Age
23%
College-Educated
87%
High-School Grad
16.6 sq mi
ZIP Area
1,492
Density / Sq Mi
$34,286
Median Household Income
$29,742
Median Earnings
$1,044
Median Rent
$94,500
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?
Apartment building - Twenty-unit apartment complex with all 2/1 units and 17 renovated units featuring new HVAC and tankless water heaters.
Where is this apartment building located?
The property is located at 500 Tuscaloosa Ave Birmingham, AL.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: 20‑unit apartment complex (all 2/1 units) built in 1978 in Birmingham, AL; 17 units renovated between 2022–present with updated interiors, new flooring, cabinetry, and appliances; Renovated units include new HVAC systems and tankless water heaters
