Tuscaloosa Multifamily Investment
For Sale
Contact for pricing
Pending
603 Hargrove E Rd, Tuscaloosa, AL 35401
48-unit apartment community in central Tuscaloosa, fully occupied.
Property Size38,592 SF
Days on Market664
Property Features for 603 Hargrove E Rd
General Information
Standard status
Pending
Size
38,592 SF
Property subtype
Multifamily
Zoning
BN NEIGHBORHOOD COMMERCIAL
Occupancy
100%
Building Details
Year Built
1966
Buildings
1
Stories
2
Units
48
Listing Agency:
Harwood Real Estate, LLC
Listed By:
Neal DiChiara, CCIM · License #AL000135301-0
(205) 764-1637
Source:
Crexi
Added: Nov 8, 2024
Changed: Aug 8
Last Checked: Jul 27 at 2:57PM
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 Harwood Real Estate, LLC
Investment Insights
Based on property information with market context.
Meadowbrook Apartments is a 48-unit apartment community constructed in 1966 and located in Tuscaloosa, Alabama. The property contains units with one bedroom and one bathroom, and two bedrooms and one bathroom. The average unit size is approximately 800 square feet. The property is fully occupied. In 2019, the units were updated with paint, LVT flooring, and new lighting. The property is situated in a central Tuscaloosa location.
Key Highlights
- Fully occupied 48‑unit apartment community.
- Central Tuscaloosa location.
- Updated units with paint, LVT flooring, and new lighting (2019).
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
$312,979
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
8.97%
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%
$6,259,580
$6.3M
Cap Rate 7%
$4,471,129
$4.5M
Cap Rate 9%
$3,477,544
$3.5M
Market Conditions
NOI Build-Up for 38,592 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
$606.7K $15.72/SF
− Vacancy
−$37.6K −$0.97/SF
EGI
$569.1K $14.75/SF
− OpEx
−$256.1K −$6.64/SF
NOI
$313.0K $8.11/SF
Area
Tuscaloosa, AL
Vacancy
6.20%
Lease Rate
$15.72 /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%
$6,259,580
Cap Rate 7%
$4,471,129
Cap Rate 9%
$3,477,544
Alternative Uses
Best Use
Apartment 5plus
$4.47M
$3.91M – $5.22M
NOI $312,979 @ 7.0% cap · market cap 8.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.27M
$8.11M – $10.82M
NOI $649,179 @ 7.0% cap · market cap 18.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
566
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 Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - 48-unit apartment community in central Tuscaloosa, fully occupied.
Where is this apartment building located?
The property is located at 603 Hargrove E Rd Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $3,490,000.
What are key features of this property?
This property features: Fully occupied 48‑unit apartment community.; Central Tuscaloosa location.; Updated units with paint, LVT flooring, and new lighting (2019).
