Former Bank Building on
For Sale
$640,000
1101 Azalea Avenue, Richmond, VA 23227
2,676 SF former bank building for sale on 0.653 AC.
Property Size2,676 SF
Lot Size0.65 Acres
Price / SF$239.16
Days on Market151
Property Features for 1101 Azalea Avenue
General Information
Standard status
Active
Size
2,676 SF
Lot size
0.65 Acres
Property subtype
Retail
Listing Agency:
(804) 201-2026
Listed By:
Pam Strieffler
(804) 201-2026
Source:
Cbre
Added: Mar 25
Changed: Aug 22
Last Checked: Aug 22 at 11:33AM
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 Pam Strieffler
Investment Insights
Based on property information with market context.
The property is a 2,676 square foot former bank building situated on 0.653 acres along Azalea Avenue, north of downtown Richmond, Virginia. The site is highly visible along the corridor and from flanking lighted intersections. It features two full access points, a three-lane drive-thru, and a large unobstructed pylon sign. The location benefits from traffic of over 17,000 vehicles per day directly in front of the site. The B-2 – Business (Community Business) zoning allows for a wide range of retail and commercial uses. Potential highest and best uses include a bank, coffee shop, or quick service restaurant, as well as redevelopment.
Key Highlights
- High visibility location on Azalea Avenue with 17,000+ vehicles per day.
- B‑2 zoning allows for a wide range of retail/commercial uses.
- Three existing drive‑thru lanes.**
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
$34,717
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
5.42%
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%
$694,340
$694.3K
Cap Rate 7%
$495,957
$496.0K
Cap Rate 9%
$385,744
$385.7K
Market Conditions
NOI Build-Up for 2,676 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
$49.8K $18.60/SF
− Vacancy
−$3.5K −$1.30/SF
EGI
$46.3K $17.30/SF
− OpEx
−$11.6K −$4.32/SF
NOI
$34.7K $12.97/SF
Area
Richmond, 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%
$694,340
Cap Rate 7%
$495,957
Cap Rate 9%
$385,744
Alternative Uses
Best Use
Specialty Retail
$496.0K
$434.0K – $578.6K
NOI $34,717 @ 7.0% cap · market cap 5.42%
Second Best
Retail
$417.2K
$365.1K – $486.8K
NOI $29,206 @ 7.0% cap · market cap 4.56%
Theoretical Best
Office A
$618.2K
$541.0K – $721.3K
NOI $43,277 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
378
Businesses Nearby
Explore this area
Business Placement
Demographics for 23227, VA
25,283
Population
13,351
Households
1.9
Avg Household Size
45
Median Age
47%
College-Educated
93%
High-School Grad
11.5 sq mi
ZIP Area
2,199
Density / Sq Mi
$70,537
Median Household Income
$45,315
Median Earnings
$1,306
Median Rent
$329,700
Median Home Value
Market
Vacancy Rate% for Retail in Richmond, VA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Bank - 2,676 SF former bank building for sale on 0.653 AC.
Where is this bank located?
The property is located at 1101 Azalea Avenue Richmond, VA.
What is the asking price?
The asking price for this property is $640,000.
What are key features of this property?
This property features: High visibility location on Azalea Avenue with 17,000+ vehicles per day.; B‑2 zoning allows for a wide range of retail/commercial uses.; Three existing drive‑thru lanes.**
