Diamond District Mixed-Use
For Sale
$6,695,000
1603 Ownby Ln, Richmond, VA 23220
Mixed-use property in Diamond District with multi-family potential.
Property Size31,300 SF
Price / SF$115.43
Days on Market191
Property Features for 1603 Ownby Ln
General Information
Standard status
Active
Size
31,300 SF
Property subtype
Industrial
Building Details
Building Size
31,300 SF
Year Built
1985
Listing Agency:
S.L. Nusbaum
Listed By:
Reid Cardon · License #VA0225096500
(804) 683-0361
Source:
Slnusbaum
Added: Feb 25
Changed: Sep 3
Last Checked: Sep 4 at 5:27AM
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 S.L. Nusbaum
Investment Insights
Based on property information with market context.
This property, located in the Diamond District, is zoned B-7, which allows for multi-family, office, hotel, retail, warehouse, and distribution uses. The masonry building features two loading docks. The New VCU Athletic Village and new Baseball Stadium construction begins in 2024. The Diamond District development will include a 180-room hotel, 1,100 multi-family units, offices, and 58,000 square feet of retail space. A new condo and multi-family development is located across the street. Scott's Addition is within walking distance, and the Park RVA Entertainment Center is nearby.
Key Highlights
- B‑7 Zoning: Ideal for multi‑family, office, hotel, retail, warehouse, and distribution.
- Located in the developing Diamond District, planned for a 180‑room hotel, 1,100 multi‑family units, offices, and 58,000 SF of retail space.
- Proximity to the new VCU Athletic Village and new Baseball Stadium (construction begins in 2024).
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
$550,780
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
8.23%
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%
$11,015,600
$11.0M
Cap Rate 7%
$7,868,286
$7.9M
Cap Rate 9%
$6,119,778
$6.1M
Market Conditions
NOI Build-Up for 58,000 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
$682.1K $11.76/SF
− Vacancy
−$34.1K −$0.59/SF
EGI
$648.0K $11.17/SF
− OpEx
−$97.2K −$1.68/SF
NOI
$550.8K $9.50/SF
Area
Richmond, VA
Vacancy
5.00%
Lease Rate
$11.76 /SF/Yr
Expense Ratio
15.00%
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%
$11,015,600
Cap Rate 7%
$7,868,286
Cap Rate 9%
$6,119,778
Alternative Uses
Best Use
Office B
$11.14M
$9.75M – $13.00M
NOI $779,805 @ 7.0% cap · market cap 11.65%
Second Best
Mixed Use
$10.35M
$9.05M – $12.07M
NOI $724,275 @ 7.0% cap · market cap 10.82%
Theoretical Best
Office A
$13.40M
$11.72M – $15.63M
NOI $937,996 @ 7.0% cap · market cap 14.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,220
Businesses Nearby
Explore this area
Business Placement
Demographics for 23220, VA
36,942
Population
16,561
Households
2.2
Avg Household Size
27
Median Age
59%
College-Educated
94%
High-School Grad
4.8 sq mi
ZIP Area
7,696
Density / Sq Mi
$56,681
Median Household Income
$33,249
Median Earnings
$1,354
Median Rent
$468,900
Median Home Value
Market
Vacancy Rate% for Office in Richmond, VA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property in Diamond District with multi-family potential.
Where is this mixed-use property located?
The property is located at 1603 Ownby Ln Richmond, VA.
What is the asking price?
The asking price for this property is $6,695,000.
What are key features of this property?
This property features: B‑7 Zoning: Ideal for multi‑family, office, hotel, retail, warehouse, and distribution.; Located in the developing Diamond District, planned for a 180‑room hotel, 1,100 multi‑family units, offices, and 58,000 SF of retail space.; Proximity to the new VCU Athletic Village and new Baseball Stadium (construction begins in 2024).
