Medical Office Building in
For Sale
$5,220,000
229 Hillcrest Parkway, Chesapeake, VA 23322
Two-story medical office building in Edinburgh development, Chesapeake.
Property Size12,298 SF
Price / SF$424.46
Days on Market157
Property Features for 229 Hillcrest Parkway
General Information
Standard status
Active
Size
12,298 SF
Class
A
Property subtype
Office
Building Details
Building Size
12,298 SF
Year Built
2021
Listing Agency:
Divaris Real Estate Inc Corporate
(757) 333-4383
Listed By:
Jason Oliver, CCIM
Source:
Divaris
Added: Mar 26
Changed: Aug 26
Last Checked: Aug 28 at 8:20AM
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 Divaris Real Estate Inc Corporate
Investment Insights
Based on property information with market context.
The property at 229 Hillcrest Parkway is a two-story medical office building situated within the Edinburgh mixed-use development in the Southern Chesapeake submarket. Constructed in 2021, the building measures 12,298 square feet. The location at the corner of Hillcrest Parkway and Edinburgh Parkway provides high traffic exposure, with proximity to retailers such as Target and Walmart. The building is occupied by Konikoff Dentistry, Klar Holmes Orthodontics, and Ivy Rehab.
Key Highlights
- Located in the highly successful Edinburgh mixed‑use development.
- High‑traffic location at the corner of Hillcrest Parkway and Edinburgh Parkway, near Target and Walmart.
- New construction: Built in 2021.
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
$188,159
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
3.60%
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%
$3,763,180
$3.8M
Cap Rate 7%
$2,687,986
$2.7M
Cap Rate 9%
$2,090,656
$2.1M
Market Conditions
NOI Build-Up for 12,298 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
$295.2K $24.00/SF
− Vacancy
−$44.3K −$3.60/SF
EGI
$250.9K $20.40/SF
− OpEx
−$62.7K −$5.10/SF
NOI
$188.2K $15.30/SF
Area
Chesapeake, VA
Vacancy
15.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
25.00%
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%
$3,763,180
Cap Rate 7%
$2,687,986
Cap Rate 9%
$2,090,656
Alternative Uses
Best Use
Office B
$2.69M
$2.35M – $3.14M
NOI $188,159 @ 7.0% cap · market cap 3.60%
Second Best
Healthcare Medical
$2.50M
$2.19M – $2.92M
NOI $175,320 @ 7.0% cap · market cap 3.36%
Theoretical Best
Office A
$3.63M
$3.18M – $4.24M
NOI $254,421 @ 7.0% cap · market cap 4.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
257
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 23322, VA
66,994
Population
22,386
Households
3
Avg Household Size
40
Median Age
42%
College-Educated
95%
High-School Grad
187.8 sq mi
ZIP Area
357
Density / Sq Mi
$133,522
Median Household Income
$55,549
Median Earnings
$1,870
Median Rent
$448,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Similar Off Market Nearby
- Edinburgh Animal Hospital — 233 Hillcrest Pkwy, Chesapeake, VA 23322
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Two-story medical office building in Edinburgh development, Chesapeake.
Where is this medical office space located?
The property is located at 229 Hillcrest Parkway Chesapeake, VA.
What is the asking price?
The asking price for this property is $5,220,000.
What are key features of this property?
This property features: Located in the highly successful Edinburgh mixed‑use development.; High‑traffic location at the corner of Hillcrest Parkway and Edinburgh Parkway, near Target and Walmart.; New construction: Built in 2021.
