Three-Unit Multifamily
For Sale
$219,900
Pending
623 38th Street, Tuscaloosa, AL 35405
ResidentialIncome, Tuscaloosa, AL
Property Size2,482 SF
Days on Market1962
Property Features for 623 38th Street
General Information
Property type
Residential Multi Family
Property subtype
Triplex
Subdivision
J Herbert Moore
Elementary school
Skyland
Middle school
Eastwood
High school
Bryant
Directions
Take Greensboro Ave., South past James Harrison Pkwy. - look for Tractor & Equipment Company on right. Entrance to 38th St. is on your left just across from Tractor & Equipment Company. Proceed on 38th St two blocks and the triplex is on your right.
Standard status
Pending
APN
31-07-35-4-007-008.000
Size
2,482 SF
Utilities
Heating system
Central, Electric (Heating), Heat Pump (Heating)
Cooling system
Central Air
Amenities
granite countertops
new refrigerators
new stoves
Building Details
Building materials
Block, Masonry
Roof type
Shingle, Composition
Listing Agency:
Harwood Real Estate
(205) 752-8484
Listed By:
Bernard Harwood
(205) 394-8484
Added: May 11, 2021
Changed: Sep 19
Last Checked: Sep 23 at 5:06AM
MLS# 143893
Copyright © 2026 West Alabama Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,482-square-foot triplex contains three separate two-bedroom, one-bath residences, providing six bedrooms and three bathrooms under one roof. All units are occupied under existing leases. The westernmost residence has undergone a complete recent remodel with granite countertops, while new refrigerators and stoves have been installed throughout the property. Each unit includes two dedicated off-street parking spaces.
Located at 623 38th Street in Tuscaloosa, Alabama, the building features block and masonry construction, composition shingle roofing, central air conditioning, and central electric heat-pump systems. The property reports a 7% cap rate and offers a three-unit configuration suited to residential income ownership.
Located at 623 38th Street in Tuscaloosa, Alabama, the building features block and masonry construction, composition shingle roofing, central air conditioning, and central electric heat-pump systems. The property reports a 7% cap rate and offers a three-unit configuration suited to residential income ownership.
Key Highlights
- Three two‑bedroom, one‑bath units totaling 2,482 square feet
- 100% occupied with leases in place for all three units
- Westernmost unit recently completely remodeled with granite countertops
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
$20,129
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
9.15%
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%
$402,580
$402.6K
Cap Rate 7%
$287,557
$287.6K
Cap Rate 9%
$223,656
$223.7K
Market Conditions
NOI Build-Up for 2,482 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
$39.0K $15.72/SF
− Vacancy
−$2.4K −$0.97/SF
EGI
$36.6K $14.75/SF
− OpEx
−$16.5K −$6.64/SF
NOI
$20.1K $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%
$402,580
Cap Rate 7%
$287,557
Cap Rate 9%
$223,656
Alternative Uses
Best Use
Multifamily LT 5
$320.3K
$280.2K – $373.6K
NOI $22,418 @ 7.0% cap · market cap 10.19%
Second Best
Apartment 5plus
$287.6K
$251.6K – $335.5K
NOI $20,129 @ 7.0% cap · market cap 9.15%
Theoretical Best
Office A
$596.4K
$521.9K – $695.9K
NOI $41,751 @ 7.0% cap · market cap 18.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
3
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
401
Businesses Nearby
Explore this area
Business Placement
Demographics for 35405, AL
45,155
Population
22,260
Households
2
Avg Household Size
34
Median Age
31%
College-Educated
94%
High-School Grad
52.9 sq mi
ZIP Area
854
Density / Sq Mi
$61,371
Median Household Income
$39,077
Median Earnings
$1,057
Median Rent
$224,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Triplex - Fully leased triplex with updated finishes, new appliances, and dedicated off-street parking for each residence.
Where is this triplex located?
The property is located at 623 38th Street Tuscaloosa, AL.
What is the asking price?
The asking price for this property is $219,900.
What are key features of this property?
This property features: Three two‑bedroom, one‑bath units totaling 2,482 square feet; 100% occupied with leases in place for all three units; Westernmost unit recently completely remodeled with granite countertops
