Mixed-Use Property in Norfolk,
For Sale
$1,900,000
2811 Colonial Ave, Norfolk, VA 23508
Eleven units, single-family home, and retail space for sale.
Property Size13,500 SF
Lot Size0.86 Acres
Days on Market105
Property Features for 2811 Colonial Ave
General Information
Standard status
Active
Size
13,500 SF
Lot size
0.86 Acres
Property subtype
Multifamily
Amenities
11 Units + SFH + Retail: A mix of one- & two-bedroom units
TRANSIT ORIENTED Easy access to I-64, I-264, I-564, and Granby Street
easy access to numerous employment centers Within 10 minutes from Norfolk International Airport, IKEA, and Simon Premium Outlet Mall
Building Details
Building Size
13,500 SF
Units
11
Listing Agency:
Hampton Roads Office
(202) 536-3719
Listed By:
Altay Uzun · License #License(s): VA: 0225214405
(202) 536-3719
Source:
Marcusmillichap
Added: May 18
Changed: Aug 8
Last Checked: Aug 30 at 1:14PM
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 Hampton Roads Office
Investment Insights
Based on property information with market context.
The property at 2811-2815 Colonial Avenue & 509 W 29th Street in Norfolk, VA, features eleven units, a single-family home (SFH), and a retail space. The unit mix includes eight one-bedroom, one-bathroom units and three two-bedroom, one-bathroom units. Constructed in 1910 and 1981, the buildings are situated on a 0.86-acre lot.
Key Highlights
- Diverse Unit Mix: Includes one‑bedroom, two‑bedroom, single‑family home (SFH), and retail space.
- Investment Opportunity: Property consists of eleven units plus a SFH and a retail space.
- Sizeable Lot: Situated on a 0.86‑acre lot.
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
$158,798
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
8.36%
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%
$3,175,960
$3.2M
Cap Rate 7%
$2,268,543
$2.3M
Cap Rate 9%
$1,764,422
$1.8M
Market Conditions
NOI Build-Up for 13,500 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
$304.6K $22.56/SF
− Vacancy
−$15.8K −$1.17/SF
EGI
$288.7K $21.39/SF
− OpEx
−$129.9K −$9.62/SF
NOI
$158.8K $11.76/SF
Area
Norfolk, VA
Vacancy
5.20%
Lease Rate
$22.56 /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%
$3,175,960
Cap Rate 7%
$2,268,543
Cap Rate 9%
$1,764,422
Alternative Uses
Best Use
Apartment 5plus
$2.27M
$1.98M – $2.65M
NOI $158,798 @ 7.0% cap · market cap 8.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.86M
$2.51M – $3.34M
NOI $200,468 @ 7.0% cap · market cap 10.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,886
Businesses Nearby
Explore this area
Business Placement
Demographics for 23508, VA
20,485
Population
7,112
Households
2.9
Avg Household Size
27
Median Age
56%
College-Educated
93%
High-School Grad
3.3 sq mi
ZIP Area
6,208
Density / Sq Mi
$74,524
Median Household Income
$24,975
Median Earnings
$1,381
Median Rent
$384,800
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?
Apartment building - Eleven units, single-family home, and retail space for sale.
Where is this apartment building located?
The property is located at 2811 Colonial Ave Norfolk, VA.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Diverse Unit Mix: Includes one‑bedroom, two‑bedroom, single‑family home (SFH), and retail space.; Investment Opportunity: Property consists of eleven units plus a SFH and a retail space.; Sizeable Lot: Situated on a 0.86‑acre lot.
