Mixed-Use Building with
For Sale
$285,000
705 Richmond Highway, Richmond, VA 23224
Two-level property combines commercial workspace with an upstairs residential unit and rear service access.
Property Size3,328 SF
Price / SF$85.64
Days on Market513
Property Features for 705 Richmond Highway
General Information
Standard status
Active
Size
3,328 SF
Property subtype
General Commercial
Additional Details
Fenced Yard
Yes
Amenities
Central Air
3
Level
City Road, Level.
Building Details
Year Built
1925
Stories
2
Listing Agency:
One South Commercial LLC
(804) 307-4060
Listed By:
Justin Sledd · License #0225191850
(804) 307-4060
Source:
Xome
Added: Apr 6, 2025
Changed: Aug 30
Last Checked: Aug 31 at 1:26PM
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.
Built in 1925, this 3,328-square-foot mixed-use building places commercial and residential functions under one roof. The ground level is arranged for office and warehouse use, with a rear roll-up door supporting access to the work area. A fenced backyard adds exterior utility.
The upper level contains a two-bedroom, two-bath apartment with a large kitchen. Central air is included, and the property sits on a level site at 705 Richmond Highway in Richmond, Virginia.
The upper level contains a two-bedroom, two-bath apartment with a large kitchen. Central air is included, and the property sits on a level site at 705 Richmond Highway in Richmond, Virginia.
Key Highlights
- 3,328‑square‑foot mixed‑use building constructed in 1925
- Ground‑floor office and warehouse configuration
- Rear roll‑up door provides service access
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
$25,076
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
8.80%
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%
$501,520
$501.5K
Cap Rate 7%
$358,229
$358.2K
Cap Rate 9%
$278,622
$278.6K
Market Conditions
NOI Build-Up for 3,328 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
$41.9K $12.60/SF
− Vacancy
−$3.4K −$1.01/SF
EGI
$38.6K $11.59/SF
− OpEx
−$13.5K −$4.06/SF
NOI
$25.1K $7.53/SF
Area
Richmond, VA
Vacancy
8.00%
Lease Rate
$12.60 /SF/Yr
Expense Ratio
35.00%
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%
$501,520
Cap Rate 7%
$358,229
Cap Rate 9%
$278,622
Alternative Uses
Best Use
Mixed Use
$593.7K
$519.5K – $692.6K
NOI $41,558 @ 7.0% cap · market cap 14.58%
Second Best
Warehouse
$451.5K
$395.0K – $526.7K
NOI $31,603 @ 7.0% cap · market cap 11.09%
Theoretical Best
Office A
$768.9K
$672.8K – $897.0K
NOI $53,822 @ 7.0% cap · market cap 18.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
783
Businesses Nearby
Explore this area
Business Placement
Demographics for 23224, VA
39,468
Population
18,201
Households
2.2
Avg Household Size
33
Median Age
19%
College-Educated
80%
High-School Grad
11.6 sq mi
ZIP Area
3,402
Density / Sq Mi
$49,263
Median Household Income
$36,275
Median Earnings
$1,268
Median Rent
$189,200
Median Home Value
Market
Vacancy Rate% for Industrial in Richmond, VA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-level property combines commercial workspace with an upstairs residential unit and rear service access.
Where is this mixed-use property located?
The property is located at 705 Richmond Highway Richmond, VA.
What is the asking price?
The asking price for this property is $285,000.
What are key features of this property?
This property features: 3,328‑square‑foot mixed‑use building constructed in 1925; Ground‑floor office and warehouse configuration; Rear roll‑up door provides service access
