Restored Commercial Building in
For Sale
$475,000
11961 LEE Hwy, Sperryville, VA 22740
Classic flat-front building blending historic charm with modern comfort.
Property Size1,200 SF
Lot Size0.40 Acres
Price / SF$395.83
Days on Market189
Property Features for 11961 LEE Hwy
General Information
Standard status
Active
Size
1,200 SF
Lot size
0.40 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$1,297
Building Details
Year Built
1920
Listing Agency:
Cheri Woodard Realty
Listed By:
Robert Glenn Chapman IV · License #0225261124
(703) 887-0895
Source:
Elliman
Added: Mar 11
Changed: Sep 12
Last Checked: Sep 14 at 6:11AM
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.
Located in Sperryville, this restored 1,200-square-foot flat-front commercial building combines historic charm with modern updates. Originally a c.1920 general store, the property features a classic flat front façade and traditional storefront design. The interior balances original beadboard walls and ceilings with updated systems, including new plumbing, electrical, HVAC, and insulation. Custom lighting and new flooring complement the historic details. A newly built gravel parking structure and rear storage shed are included. Zoned "Highway Commercial (HC)", the property is suitable for a boutique, gallery, café, office, or hospitality business. The property is situated on Rt 211 across from one of two entrances to Sperryville’s Main Street and near Shenandoah National Park. Vehicular traffic is approximately 2 million cars per year. This listing includes two parcels, totaling 0.84 acres (0.40 + 0.47 acres).
Key Highlights
- Prime location on Rt 211 with high visibility near Sperryville's Main Street entrance and Shenandoah National Park.
- Two parcels totaling 0.84 acres included in the sale.
- Restored 1,200 sq ft commercial building blending historic charm with modern updates.
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
$40,142
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
8.45%
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%
$802,840
$802.8K
Cap Rate 7%
$573,457
$573.5K
Cap Rate 9%
$446,022
$446.0K
Market Conditions
NOI Build-Up for 1,200 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
$60.0K $50.04/SF
− Vacancy
−$2.7K −$2.25/SF
EGI
$57.3K $47.79/SF
− OpEx
−$17.2K −$14.34/SF
NOI
$40.1K $33.45/SF
Area
Rappahannock County, VA
Vacancy
4.50%
Lease Rate
$50.04 /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%
$802,840
Cap Rate 7%
$573,457
Cap Rate 9%
$446,022
Alternative Uses
Best Use
Retail
$573.5K
$501.8K – $669.0K
NOI $40,142 @ 7.0% cap · market cap 8.45%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$666.5K
$583.2K – $777.6K
NOI $46,656 @ 7.0% cap · market cap 9.82%
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
91
Businesses Nearby
303
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Napa Auto Parts
Shops & Services
303 visits/mo
0.3 miles
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Similar Off Market Nearby
- Farm & Fields Floral Design — 15 Main St, Sperryville, VA 22740
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Frequently Asked Questions
What type of property is this?
Storefront property - Classic flat-front building blending historic charm with modern comfort.
Where is this storefront property located?
The property is located at 11961 LEE Hwy Sperryville, VA.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: Prime location on Rt 211 with high visibility near Sperryville's Main Street entrance and Shenandoah National Park.; Two parcels totaling 0.84 acres included in the sale.; Restored 1,200 sq ft commercial building blending historic charm with modern updates.
