Mixed-Use Live-Work
For Sale
$575,000
2538 W Pembroke Ave, Hampton, VA 23661
Two-story building with first-floor office/warehouse space and two apartments on the second floor with private side entrance.
Property Size5,100 SF
Price / SF$112.75
Days on Market44
Property Features for 2538 W Pembroke Ave
General Information
Standard status
Active
Size
5,100 SF
Site & Location
Highway Access
Yes
Fenced Yard
Yes
Additional Details
Multifamily Units
2
Building Details
Year Built
1957
Stories
2
Listing Agency:
Long & Foster Real Estate Inc.
Listed By:
Kyle T. Hause Jr. · License #0225143450
(757) 727-0069
Source:
Horakrealtygroup
Added: Jul 27
Changed: Sep 8
Last Checked: Sep 7 at 7:05AM
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 Long & Foster Real Estate Inc.
Investment Insights
Based on property information with market context.
This two-story commercial building offers a live-work configuration with first-floor office and warehouse space, and two separate two-bedroom apartments on the second floor. The apartments each include a private side entrance, supporting independent access from the commercial portion.
The property fronts W Pembroke and backs up to I-664, with proximity to two exits. The sale includes 2538 and 2540 W Pembroke, providing a practical combined holding.
The building is described as being in good shape, with a newly installed roof. Parking is available onsite, and the back area is fenced.
The property fronts W Pembroke and backs up to I-664, with proximity to two exits. The sale includes 2538 and 2540 W Pembroke, providing a practical combined holding.
The building is described as being in good shape, with a newly installed roof. Parking is available onsite, and the back area is fenced.
Key Highlights
- Two‑story commercial building fronting W Pembroke and backing up to I‑664
- 1st floor offers office and warehouse space
- 2nd floor has two 2‑bedroom apartments with private side entrances
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
$40,577
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
7.06%
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%
$811,540
$811.5K
Cap Rate 7%
$579,671
$579.7K
Cap Rate 9%
$450,856
$450.9K
Market Conditions
NOI Build-Up for 5,100 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
$49.6K $9.72/SF
− Vacancy
−$1.8K −$0.36/SF
EGI
$47.7K $9.36/SF
− OpEx
−$7.2K −$1.40/SF
NOI
$40.6K $7.96/SF
Area
Hampton, VA
Vacancy
3.70%
Lease Rate
$9.72 /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%
$811,540
Cap Rate 7%
$579,671
Cap Rate 9%
$450,856
Alternative Uses
Best Use
Office B
$957.5K
$837.8K – $1.12M
NOI $67,025 @ 7.0% cap · market cap 11.66%
Second Best
Mixed Use
$904.9K
$791.8K – $1.06M
NOI $63,342 @ 7.0% cap · market cap 11.02%
Theoretical Best
Office A
$1.33M
$1.16M – $1.55M
NOI $92,840 @ 7.0% cap · market cap 16.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Yes
Fenced yard
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
276
Businesses Nearby
Explore this area
Business Placement
Demographics for 23661, VA
13,771
Population
6,614
Households
2.1
Avg Household Size
41
Median Age
26%
College-Educated
92%
High-School Grad
4.7 sq mi
ZIP Area
2,930
Density / Sq Mi
$66,760
Median Household Income
$44,399
Median Earnings
$1,224
Median Rent
$200,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Live-work space - Two-story building with first-floor office/warehouse space and two apartments on the second floor with private side entrance.
Where is this live-work space located?
The property is located at 2538 W Pembroke Ave Hampton, VA.
What is the asking price?
The asking price for this property is $575,000.
What are key features of this property?
This property features: Two‑story commercial building fronting W Pembroke and backing up to I‑664; 1st floor offers office and warehouse space; 2nd floor has two 2‑bedroom apartments with private side entrances
