Historic Shockoe Bottom Redevelopment
For Sale
$550,000
7 N 18th St, Richmond, VA 23223
Redevelopment opportunity in historic Shockoe Bottom neighborhood.
Property Size6,403 SF
Days on Market140
Property Features for 7 N 18th St
General Information
Standard status
Active
Size
6,403 SF
Property subtype
Commercial
Building Details
Building Size
6,403 SF
Year Built
1974
Stories
1
Listing Agency:
One South Commercial LLC
Listed By:
Christopher Corrada · License #0225066800
(804) 833-7909
Source:
Elliman
Added: Apr 24
Changed: Sep 5
Last Checked: Sep 9 at 8:10AM
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 One South Commercial LLC
Investment Insights
Based on property information with market context.
Located on North 18th Street in historic Shockoe Bottom, this property presents a redevelopment opportunity. The building, currently in shell condition, offers a blank canvas for investors and developers. It features three entrances along North 18th Street, providing frontage and design flexibility. The B-5 zoning supports development up to five stories, with multifamily use permitted by right. A Special Use Permit, approved in 2025, allows for the construction of a 17-space parking garage within the building, accessed from the alley off 18th Street. This approval can be integrated into a larger multi-story residential or mixed-use development or executed as a standalone, income-producing parking facility. The property is also suited for retail or other commercial redevelopment. The location has a bike score of 88, indicating it is very bikeable, a walk score of 81, indicating it is very walkable, and a transit score of 58, indicating good transit.
Key Highlights
- Approved Special Use Permit for a 17‑space parking garage, a unique and valuable entitlement.
- B‑5 zoning allows for development up to five stories with multifamily permitted by right.
- Located in the dynamic Shockoe Bottom neighborhood.
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
$40,597
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
7.38%
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%
$811,940
$811.9K
Cap Rate 7%
$579,957
$580.0K
Cap Rate 9%
$451,078
$451.1K
Market Conditions
NOI Build-Up for 6,403 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
$63.8K $9.96/SF
− Vacancy
−$5.8K −$0.90/SF
EGI
$58.0K $9.06/SF
− OpEx
−$17.4K −$2.72/SF
NOI
$40.6K $6.34/SF
Area
Richmond, VA
Vacancy
9.06%
Lease Rate
$9.96 /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%
$811,940
Cap Rate 7%
$579,957
Cap Rate 9%
$451,078
Alternative Uses
Best Use
Mixed Use
$1.14M
$999.5K – $1.33M
NOI $79,957 @ 7.0% cap · market cap 14.54%
Second Best
Apartment 5plus
$1.13M
$991.5K – $1.32M
NOI $79,323 @ 7.0% cap · market cap 14.42%
Theoretical Best
Office A
$1.48M
$1.29M – $1.73M
NOI $103,552 @ 7.0% cap · market cap 18.83%
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
6,645
Businesses Nearby
Explore this area
Business Placement
Demographics for 23223, VA
51,960
Population
27,141
Households
1.9
Avg Household Size
35
Median Age
32%
College-Educated
90%
High-School Grad
16.7 sq mi
ZIP Area
3,111
Density / Sq Mi
$56,518
Median Household Income
$39,828
Median Earnings
$1,224
Median Rent
$236,300
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 Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Redevelopment opportunity in historic Shockoe Bottom neighborhood.
Where is this mixed-use property located?
The property is located at 7 N 18th St Richmond, VA.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: Approved Special Use Permit for a 17‑space parking garage, a unique and valuable entitlement.; B‑5 zoning allows for development up to five stories with multifamily permitted by right.; Located in the dynamic Shockoe Bottom neighborhood.
