Hillsborough Commercial Land
For Sale
$645,000
1800 Orange Grove Road, Hillsborough, NC 27278
Commercial Sale, Hillsborough, NC
Property Size2,502 SF
Lot Size2.40 Acres
Price / SF$257.79
Days on Market383
Property Features for 1800 Orange Grove Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
AR
Lot features
Partially Cleared, Sloped
Standard status
Active
APN
9864812208
Size
2,502 SF
Lot size
2.40 Acres
Taxes and HOA fees
Tax Year
2025
Tax Description
TR 1 LLOYD
Tax Annual Amount
3088
Legal Description
TR 1 LLOYD
Utilities
Utilities
Water Available
Water source
Public
Building Details
Year built
1907
Floors in Building
2
Listing Agency:
Re/MaxDiamond Realty
(336) 516-7217
Listed By:
Victoria Knight McKee · License #334789
(919) 619-9209
Added: Aug 3, 2025
Changed: Aug 19
Last Checked: Aug 20 at 7:06PM
MLS# 10113604
Copyright © 2026 Doorify MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This strategically located property offers versatile and exceptional potential on approximately 2.4 acres, situated just minutes from Downtown Hillsborough, North Carolina, with convenient access to Interstates I-85 and I-40. Zoned Agricultural/Residential and located inside the Town of Hillsborough's ETJ, this parcel presents a potential opportunity for rezoning and redevelopment through the Town of Hillsborough, including commercial uses. The property is positioned in one of southern Hillsborough's most desirable growth corridors, experiencing increased investment, demand, and municipal engagement. Public water, sewer, natural gas, and fiber internet are available. The property currently features a single-family residence. The location benefits from a daily traffic count of 9400. The property size is 2502 square feet.
Key Highlights
- Prime location near Downtown Hillsborough with easy access to I‑85 and I‑40.
- Significant rezoning potential for commercial or other uses within Hillsborough's ETJ.
- Located in a desirable growth corridor with increasing investment and municipal engagement.
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
$18,956
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
2.94%
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%
$379,120
$379.1K
Cap Rate 7%
$270,800
$270.8K
Cap Rate 9%
$210,622
$210.6K
Market Conditions
NOI Build-Up for 2,502 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
$39.0K $15.60/SF
− Vacancy
−$4.6K −$1.83/SF
EGI
$34.5K $13.77/SF
− OpEx
−$15.5K −$6.20/SF
NOI
$19.0K $7.58/SF
Area
Orange County, NC
Vacancy
11.70%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
45.00%
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%
$379,120
Cap Rate 7%
$270,800
Cap Rate 9%
$210,622
Alternative Uses
Best Use
Apartment 5plus
$270.8K
$237.0K – $315.9K
NOI $18,956 @ 7.0% cap · market cap 2.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$807.9K
$706.9K – $942.6K
NOI $56,555 @ 7.0% cap · market cap 8.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
411
Businesses Nearby
Explore this area
Business Placement
Demographics for 27278, NC
28,846
Population
12,328
Households
2.3
Avg Household Size
43
Median Age
54%
College-Educated
91%
High-School Grad
103.7 sq mi
ZIP Area
278
Density / Sq Mi
$101,821
Median Household Income
$51,380
Median Earnings
$1,294
Median Rent
$380,000
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Strategically located land parcel with redevelopment potential near Downtown Hillsborough.
Where is this commercial land located?
The property is located at 1800 Orange Grove Road Hillsborough, NC.
What is the asking price?
The asking price for this property is $645,000.
What are key features of this property?
This property features: Prime location near Downtown Hillsborough with easy access to I‑85 and I‑40.; Significant rezoning potential for commercial or other uses within Hillsborough's ETJ.; Located in a desirable growth corridor with increasing investment and municipal engagement.
