Renovated Mixed-Use Hospitality
For Sale
$2,495,000
128134 E DAVIS STREET, Culpeper, VA 22701
Two connected buildings combine restaurant, residential, and suite accommodations.
Property Size7,236 SF
Price / SF$344.80
Days on Market281
Property Features for 128134 E DAVIS STREET
General Information
Standard status
Active
Size
7,236 SF
Property subtype
Mixed Use
Additional Details
Business Included
Yes
Road Access
Yes
Patio
Yes
Taxes and HOA fees
Annual Taxes
$5,763
Amenities
Central Air, Ceiling Fan(s)
3
Hardwood, Ceramic Tile
Metal, Rubber
Parking.
Public, On Street.
Mountain
Downtown.
Building Details
Year Built
1953
Buildings
2
Listing Agency:
Long & Foster Real Estate, Inc.
(540) 222-9155
Listed By:
Philip Thornton · License #0225098041
(540) 222-9155
Source:
Xome
Added: Nov 22, 2025
Changed: Aug 29
Last Checked: Aug 29 at 6:51PM
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 Long & Foster Real Estate, Inc.
Investment Insights
Based on property information with market context.
This mixed-use hospitality property comprises two connected buildings totaling 7236 square feet. The first includes the It's About Thyme restaurant and an extensively renovated two-bedroom apartment above. The second contains additional restaurant space currently rented to a fast-casual eatery, with three curated suites on the upper level under the Thyme Inn name. One suite includes a balcony with mountain views.
A covered alleyway links the buildings through a long-term lease with the Town and provides conditioned outdoor dining space. Interior details include hardwood and ceramic tile flooring, central air, and ceiling fans. The property is positioned at 128134 E Davis Street in downtown Culpeper, Virginia, and was built in 1953. Murals by Italian artist Davido Rodoquino are featured within the restaurant space.
A covered alleyway links the buildings through a long-term lease with the Town and provides conditioned outdoor dining space. Interior details include hardwood and ceramic tile flooring, central air, and ceiling fans. The property is positioned at 128134 E Davis Street in downtown Culpeper, Virginia, and was built in 1953. Murals by Italian artist Davido Rodoquino are featured within the restaurant space.
Key Highlights
- Two connected buildings totaling 7236 square feet
- Restaurant, two‑bedroom apartment, second restaurant space, and three upper‑level suites
- Second restaurant space is currently rented to a fast‑casual eatery
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
$126,178
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
5.06%
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%
$2,523,560
$2.5M
Cap Rate 7%
$1,802,543
$1.8M
Cap Rate 9%
$1,401,978
$1.4M
Market Conditions
NOI Build-Up for 7,236 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
$217.1K $30.00/SF
− Vacancy
−$15.2K −$2.10/SF
EGI
$201.9K $27.90/SF
− OpEx
−$75.7K −$10.46/SF
NOI
$126.2K $17.44/SF
Area
Culpeper County, VA
Vacancy
7.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$2,523,560
Cap Rate 7%
$1,802,543
Cap Rate 9%
$1,401,978
Alternative Uses
Best Use
Specialty Retail
$4.02M
$3.52M – $4.69M
NOI $281,336 @ 7.0% cap · market cap 11.28%
Second Best
Mixed Use
$1.80M
$1.58M – $2.10M
NOI $126,178 @ 7.0% cap · market cap 5.06%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,082
Businesses Nearby
Explore this area
Business Placement
Demographics for 22701, VA
37,411
Population
13,770
Households
2.7
Avg Household Size
38
Median Age
27%
College-Educated
88%
High-School Grad
172.2 sq mi
ZIP Area
217
Density / Sq Mi
$93,910
Median Household Income
$47,492
Median Earnings
$1,386
Median Rent
$376,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two connected buildings combine restaurant, residential, and suite accommodations.
Where is this mixed-use property located?
The property is located at 128134 E DAVIS STREET Culpeper, VA.
What is the asking price?
The asking price for this property is $2,495,000.
What are key features of this property?
This property features: Two connected buildings totaling 7236 square feet; Restaurant, two‑bedroom apartment, second restaurant space, and three upper‑level suites; Second restaurant space is currently rented to a fast‑casual eatery
