Commercial Building with Restaurant
For Sale
$379,000
Pending
2019 E Washington St, Petersburg, VA 23803
2400 sq ft commercial building with restaurant and retail.
Property Size2,400 SF
Days on Market673
Property Features for 2019 E Washington St
General Information
Standard status
Pending
Size
2,400 SF
Listing Agency:
Coldwell Banker Traditions
(757) 229-9595
Listed By:
John Wilson
(757) 880-9085
Source:
Exprealty
Added: Nov 6, 2024
Changed: Sep 8
Last Checked: Sep 10 at 1:49PM
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 Coldwell Banker Traditions
Investment Insights
Based on property information with market context.
This standalone 2,400 sq. ft. commercial building is located in a high-growth area and presents an investment or owner-user opportunity. The property features two separate interior spaces. The left unit is a fully built-out restaurant space with a complete kitchen, including a hood system, making it a turnkey opportunity for food service businesses. The right unit was previously used as a salon, and this flexible space is ideal for any retail or service-based business. The property's strategic location is perfect for capitalizing on the anticipated increase in traffic and economic activity with the potential new casino coming to Petersburg. Owner financing is available for up to 50% of the purchase price. This property offers excellent value and long-term growth potential for investors or business owners looking to establish a presence in a thriving market.
Key Highlights
- Owner financing available: up to 50% of the purchase price.
- Turnkey restaurant space: fully built‑out with a complete kitchen and hood system.
- High‑growth area: strategic location to capitalize on the anticipated new casino in Petersburg.
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
$31,136
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
8.22%
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%
$622,720
$622.7K
Cap Rate 7%
$444,800
$444.8K
Cap Rate 9%
$345,956
$346.0K
Market Conditions
NOI Build-Up for 2,400 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
$44.6K $18.60/SF
− Vacancy
−$3.1K −$1.30/SF
EGI
$41.5K $17.30/SF
− OpEx
−$10.4K −$4.32/SF
NOI
$31.1K $12.97/SF
Area
Petersburg County, VA
Vacancy
7.00%
Lease Rate
$18.60 /SF/Yr
Expense Ratio
25.00%
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%
$622,720
Cap Rate 7%
$444,800
Cap Rate 9%
$345,956
Alternative Uses
Best Use
Specialty Retail
$444.8K
$389.2K – $518.9K
NOI $31,136 @ 7.0% cap · market cap 8.22%
Second Best
Retail
$374.2K
$327.4K – $436.6K
NOI $26,194 @ 7.0% cap · market cap 6.91%
Theoretical Best
Office A
$554.5K
$485.2K – $646.9K
NOI $38,814 @ 7.0% cap · market cap 10.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
222
Businesses Nearby
12k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Dollar General
Shops & Services
4,520 visits/mo
0.1 miles
Citgo
Shops & Services
3,372 visits/mo
0.4 miles
BP
Shops & Services
2,664 visits/mo
0.1 miles
FedEx Office Print & Ship Center
Shops & Services
1,496 visits/mo
0.2 miles
Demographics for 23803, VA
44,377
Population
19,826
Households
2.2
Avg Household Size
36
Median Age
24%
College-Educated
88%
High-School Grad
72.2 sq mi
ZIP Area
615
Density / Sq Mi
$55,820
Median Household Income
$35,122
Median Earnings
$1,132
Median Rent
$208,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - 2400 sq ft commercial building with restaurant and retail.
Where is this conventional restaurant located?
The property is located at 2019 E Washington St Petersburg, VA.
What is the asking price?
The asking price for this property is $379,000.
What are key features of this property?
This property features: Owner financing available: up to 50% of the purchase price.; Turnkey restaurant space: fully built‑out with a complete kitchen and hood system.; High‑growth area: strategic location to capitalize on the anticipated new casino in Petersburg.
