Eight-Unit Apartment
For Sale
Contact for pricing
7721 1st Avenue North, Birmingham, AL 35206
Renovated eight-unit, all three-bedroom configuration offered as-is with current occupancy and immediate lease-up potential.
Property Size7,567 SF
Price / SF$85.77
Days on Market63
Property Features for 7721 1st Avenue North
General Information
Standard status
Active
Size
7,567 SF
Property subtype
Multifamily
Zoning
MU-L
Occupancy
62%
Investment Type
Value Add
Additional Details
Multifamily Units
8
Building Details
Year Built
1988
Year Renovated
2024
Buildings
1
Tenancy
Multi
Listing Agency:
Watts Realty Company
(205) 251-1267
Listed By:
Chip Watts · License #AL 62851
Source:
Crexi
Added: Jul 1
Changed: Aug 7
Last Checked: Aug 30 at 11:32PM
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 Watts Realty Company
Investment Insights
Based on property information with market context.
This is an eight-unit apartment building offered for sale as-is. All units are configured as 3BR/1BA. According to the seller, the majority of units were renovated during 2024–2025.
Five of the eight units are currently occupied, and three units are vacant and described as ready for immediate lease-up. The property is being marketed with the remaining units and condition handled on an as-is basis.
For buyers and operators, the building’s uniform 3BR/1BA layout can simplify underwriting and leasing across the portfolio. With several units already vacant and ready to rent, there is an opportunity to stabilize operations while maintaining a consistent unit mix. Renovation work completed in 2024–2025 may reduce near-term interior turnover needs relative to non-updated configurations, subject to inspection and due diligence.
Five of the eight units are currently occupied, and three units are vacant and described as ready for immediate lease-up. The property is being marketed with the remaining units and condition handled on an as-is basis.
For buyers and operators, the building’s uniform 3BR/1BA layout can simplify underwriting and leasing across the portfolio. With several units already vacant and ready to rent, there is an opportunity to stabilize operations while maintaining a consistent unit mix. Renovation work completed in 2024–2025 may reduce near-term interior turnover needs relative to non-updated configurations, subject to inspection and due diligence.
Key Highlights
- Eight‑unit multifamily built in 1988, all units configured as 3BR/1BA
- Majority of units renovated in 2024‑25
- Current occupancy: five of eight units occupied
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
$54,568
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
8.41%
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%
$1,091,360
$1.1M
Cap Rate 7%
$779,543
$779.5K
Cap Rate 9%
$606,311
$606.3K
Market Conditions
NOI Build-Up for 7,567 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
$109.9K $14.52/SF
− Vacancy
−$10.7K −$1.41/SF
EGI
$99.2K $13.11/SF
− OpEx
−$44.6K −$5.90/SF
NOI
$54.6K $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%
$1,091,360
Cap Rate 7%
$779,543
Cap Rate 9%
$606,311
Alternative Uses
Best Use
Apartment 5plus
$779.5K
$682.1K – $909.5K
NOI $54,568 @ 7.0% cap · market cap 8.41%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.78M
$1.55M – $2.07M
NOI $124,329 @ 7.0% cap · market cap 19.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Location Intelligence
Trade Area within ½ mile
397
Businesses Nearby
Explore this area
Business Placement
Demographics for 35206, AL
15,648
Population
7,967
Households
2
Avg Household Size
40
Median Age
19%
College-Educated
87%
High-School Grad
10.1 sq mi
ZIP Area
1,549
Density / Sq Mi
$39,051
Median Household Income
$28,665
Median Earnings
$990
Median Rent
$122,500
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 - Renovated eight-unit, all three-bedroom configuration offered as-is with current occupancy and immediate lease-up potential.
Where is this apartment building located?
The property is located at 7721 1st Avenue North Birmingham, AL.
What is the asking price?
The asking price for this property is $649,000.
What are key features of this property?
This property features: Eight‑unit multifamily built in 1988, all units configured as 3BR/1BA; Majority of units renovated in 2024‑25; Current occupancy: five of eight units occupied
