Elevator-Served Hotel
For Sale
$5,950,000
205 205 S Main Street, Blacksburg, VA 24060
Downtown hospitality property with guest accommodations, covered parking, and conversion potential subject to approvals.
Property Size23,940 SF
Price / SF$248.54
Days on Market8
Property Features for 205 205 S Main Street
General Information
Standard status
Active
Size
23,940 SF
Elevators
Yes
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$34,980
Amenities
covered parking
Building Details
Year Built
2008
Stories
3
Listing Agency:
Nest Realty SWVA
(540) 998-4731
Listed By:
Jeremy Hart
(540) 998-4731
Source:
Xome
Added: Aug 9
Changed: Aug 15
Last Checked: Aug 15 at 4:25AM
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 Nest Realty SWVA
Investment Insights
Based on property information with market context.
Built in 2008, this 23,940-square-foot hospitality property contains 34 existing guest units arranged across three floors. The building includes a central corridor plan, two stairwells, elevator service, covered parking, modernized common areas, and operational infrastructure. Consistent unit dimensions and stacked plumbing support evaluation of a future layout incorporating studio and one-bedroom units, subject to required approvals.
The property is located on S Main Street in downtown Blacksburg, along a primary commercial corridor and adjacent to Virginia Tech. Originally designed as an inn, the asset offers an existing hospitality configuration with documented physical characteristics relevant to a potential multifamily or mixed-use conversion.
The property is located on S Main Street in downtown Blacksburg, along a primary commercial corridor and adjacent to Virginia Tech. Originally designed as an inn, the asset offers an existing hospitality configuration with documented physical characteristics relevant to a potential multifamily or mixed-use conversion.
Key Highlights
- 34 existing guest units across three floors
- 23,940‑square‑foot hospitality property built in 2008
- Elevator access, central corridor layout, and two stairwells
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
$301,077
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%
$6,021,540
$6.0M
Cap Rate 7%
$4,301,100
$4.3M
Cap Rate 9%
$3,345,300
$3.3M
Market Conditions
NOI Build-Up for 23,940 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
$591.8K $24.72/SF
− Vacancy
−$44.4K −$1.85/SF
EGI
$547.4K $22.87/SF
− OpEx
−$246.3K −$10.29/SF
NOI
$301.1K $12.58/SF
Area
Montgomery County, VA
Vacancy
7.50%
Lease Rate
$24.72 /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%
$6,021,540
Cap Rate 7%
$4,301,100
Cap Rate 9%
$3,345,300
Alternative Uses
Best Use
Apartment 5plus
$4.30M
$3.76M – $5.02M
NOI $301,077 @ 7.0% cap · market cap 5.06%
Second Best
Hotel Hospitality
$1.61M
$1.41M – $1.88M
NOI $112,578 @ 7.0% cap · market cap 1.89%
Theoretical Best
Flex RnD
$5.67M
$4.96M – $6.61M
NOI $396,581 @ 7.0% cap · market cap 6.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,217
Businesses Nearby
Explore this area
Business Placement
Demographics for 24060, VA
46,755
Population
22,797
Households
2.1
Avg Household Size
28
Median Age
63%
College-Educated
98%
High-School Grad
130.8 sq mi
ZIP Area
357
Density / Sq Mi
$63,496
Median Household Income
$31,827
Median Earnings
$1,266
Median Rent
$412,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Downtown hospitality property with guest accommodations, covered parking, and conversion potential subject to approvals.
Where is this hotel located?
The property is located at 205 205 S Main Street Blacksburg, VA.
What is the asking price?
The asking price for this property is $5,950,000.
What are key features of this property?
This property features: 34 existing guest units across three floors; 23,940‑square‑foot hospitality property built in 2008; Elevator access, central corridor layout, and two stairwells
