Multifamily Income Property with Retail
For Sale
$559,000
11947 Lee Hwy, Sperryville, VA 22740
Two structures on one parcel include multiple grandfathered residential units plus one commercial unit, zoned Highway Commercial.
Property Size1,260 SF
Price / SF$443.65
Days on Market326
Property Features for 11947 Lee Hwy
General Information
Standard status
Active
Size
1,260 SF
Property subtype
Fourplex
Zoning
Highway Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Utilities to Site
Yes
Additional Details
Multifamily Units
4
Taxes and HOA fees
Annual Taxes
$2,149
Amenities
Electric, Heat Pump
3
Wood Shingle, Metal, Composition, Other, Shingle
Stone, Vinyl
Private Yard.
Building Details
Year Built
1900
Listing Agency:
Cheri Woodard Realty
(540) 987-8500
Listed By:
Robert Chapman · License #0225261124
(540) 274-4052
Source:
Xome
Added: Oct 18, 2025
Changed: Sep 1
Last Checked: Sep 7 at 6:03AM
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 Cheri Woodard Realty
Investment Insights
Based on property information with market context.
This offering combines 11947 and 11951 Lee Hwy on one parcel for a multifamily income opportunity. The sale includes two structures containing FOU grandfathered residential units, along with ONE commercial unit.
The property is positioned on the highly traveled Rt 211, described as a major artery seeing 2 million+ vehicles per year, and it is opportunistically near the Thornton Gap entrance to Shenandoah National Park. Zoning is Highway Commercial, with by-right uses listed including short term rentals, retail, food service, and hospitality.
Utilities are provided via electric and propane, with a private well and town sewer, plus high speed internet service. The provided materials also note the presence of unused spaces and an old fruit stand on-site, which may be relevant to future finishing or rehabilitation plans.
The property is positioned on the highly traveled Rt 211, described as a major artery seeing 2 million+ vehicles per year, and it is opportunistically near the Thornton Gap entrance to Shenandoah National Park. Zoning is Highway Commercial, with by-right uses listed including short term rentals, retail, food service, and hospitality.
Utilities are provided via electric and propane, with a private well and town sewer, plus high speed internet service. The provided materials also note the presence of unused spaces and an old fruit stand on-site, which may be relevant to future finishing or rehabilitation plans.
Key Highlights
- Two structures at 11947 & 11951 Lee Hwy sold together on one parcel, with multiple grandfathered residential units plus one commercial unit
- Highway Commercial zoning with by‑right uses including short‑term rentals, retail, food service, and hospitality
- Located along Rt 211, a major artery with 2 million+ vehicles per year, near the Thornton Gap entrance to Shenandoah National Park
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
$21,436
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
3.83%
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%
$428,720
$428.7K
Cap Rate 7%
$306,229
$306.2K
Cap Rate 9%
$238,178
$238.2K
Market Conditions
NOI Build-Up for 1,260 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
$32.5K $25.80/SF
− Vacancy
−$1.9K −$1.50/SF
EGI
$30.6K $24.30/SF
− OpEx
−$9.2K −$7.29/SF
NOI
$21.4K $17.01/SF
Area
Rappahannock County, VA
Vacancy
5.80%
Lease Rate
$25.80 /SF/Yr
Expense Ratio
30.00%
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%
$428,720
Cap Rate 7%
$306,229
Cap Rate 9%
$238,178
Alternative Uses
Best Use
Multifamily LT 5
$306.2K
$268.0K – $357.3K
NOI $21,436 @ 7.0% cap · market cap 3.83%
Second Best
Apartment 5plus
$275.9K
$241.4K – $321.9K
NOI $19,315 @ 7.0% cap · market cap 3.46%
Theoretical Best
Specialty Retail
$699.8K
$612.4K – $816.5K
NOI $48,989 @ 7.0% cap · market cap 8.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
91
Businesses Nearby
Explore this area
Business Placement
Demographics for 22740, VA
1,240
Population
583
Households
2.1
Avg Household Size
53
Median Age
38%
College-Educated
98%
High-School Grad
73.5 sq mi
ZIP Area
17
Density / Sq Mi
$96,220
Median Household Income
$49,569
Median Earnings
$1,354
Median Rent
$398,800
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?
Quadplex - Two structures on one parcel include multiple grandfathered residential units plus one commercial unit, zoned Highway Commercial.
Where is this quadplex located?
The property is located at 11947 Lee Hwy Sperryville, VA.
What is the asking price?
The asking price for this property is $559,000.
What are key features of this property?
This property features: Two structures at 11947 & 11951 Lee Hwy sold together on one parcel, with multiple grandfathered residential units plus one commercial unit; Highway Commercial zoning with by‑right uses including short‑term rentals, retail, food service, and hospitality; Located along Rt 211, a major artery with 2 million+ vehicles per year, near the Thornton Gap entrance to Shenandoah National Park
