Three-Tenant Shopping
For Sale
Contact for pricing
5420 Southpoint Plaza Way, Fredericksburg, VA 22407
C-3-zoned retail center with established restaurant tenancy and full occupancy.
Property Size7,758 SF
Price / SF$364.78
Days on Market17
Property Features for 5420 Southpoint Plaza Way
General Information
Standard status
Active
Size
7,758 SF
Total Parking Spaces
40
Property subtype
Retail
Zoning
C-3
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$170,251
Building Details
Year Built
2008
Buildings
1
Stories
1
Tenancy
Multi
Listing Agency:
Johnson Realty Advisors
(540) 548-2220
Listed By:
Heather Hagerman · License #VA
Source:
Crexi
Added: Aug 13
Changed: Aug 28
Last Checked: Aug 28 at 7:13PM
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 Johnson Realty Advisors
Investment Insights
Based on property information with market context.
Built in 2008, this 7,758-square-foot shopping center at 5420 Southpoint Plaza Way is configured as a three-tenant retail property. The center is fully occupied by Chipotle Mexican Grill, Quickway Japanese Hibachi, and Clean Eatz, providing an established restaurant-oriented tenant roster.
The property is located in Fredericksburg, Virginia, and carries C-3 zoning. Its in-place cap rate is 6.02%, offering a defined operating profile for investors evaluating an occupied retail asset.
The property is located in Fredericksburg, Virginia, and carries C-3 zoning. Its in-place cap rate is 6.02%, offering a defined operating profile for investors evaluating an occupied retail asset.
Key Highlights
- 7,758‑square‑foot shopping center built in 2008
- Three‑tenant retail property with 100% occupancy
- Tenants include Chipotle Mexican Grill, Quickway Japanese Hibachi, and Clean Eatz
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
$117,360
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
4.15%
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%
$2,347,200
$2.3M
Cap Rate 7%
$1,676,571
$1.7M
Cap Rate 9%
$1,304,000
$1.3M
Market Conditions
NOI Build-Up for 7,758 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
$162.0K $20.88/SF
− Vacancy
−$5.5K −$0.71/SF
EGI
$156.5K $20.17/SF
− OpEx
−$39.1K −$5.04/SF
NOI
$117.4K $15.13/SF
Area
Spotsylvania County, VA
Vacancy
3.40%
Lease Rate
$20.88 /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%
$2,347,200
Cap Rate 7%
$1,676,571
Cap Rate 9%
$1,304,000
Alternative Uses
Best Use
Specialty Retail
$1.68M
$1.47M – $1.96M
NOI $117,360 @ 7.0% cap · market cap 4.15%
Second Best
Retail
$1.58M
$1.38M – $1.84M
NOI $110,443 @ 7.0% cap · market cap 3.90%
Theoretical Best
Office A
$2.43M
$2.13M – $2.84M
NOI $170,227 @ 7.0% cap · market cap 6.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
547
Businesses Nearby
585k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 51%
Shops & Services 25%
Superstores 21%
Electronics 2%
Walmart
Superstores
122,205 visits/mo
0.5 miles
Wawa
Shops & Services
62,877 visits/mo
0.5 miles
Chick-fil-A
Dining
45,613 visits/mo
0.1 miles
McDonald's
Dining
42,041 visits/mo
0.1 miles
Exxon
Shops & Services
28,500 visits/mo
0.2 miles
Demographics for 22407, VA
62,668
Population
23,305
Households
2.7
Avg Household Size
38
Median Age
33%
College-Educated
90%
High-School Grad
61.0 sq mi
ZIP Area
1,027
Density / Sq Mi
$105,218
Median Household Income
$47,282
Median Earnings
$1,758
Median Rent
$376,200
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Cosner's Corner — 2215 Patriot Hwy, Fredericksburg, VA 22407
- Southpoint Shoppes — 10211 Southpoint Pkwy, Fredericksburg, VA 22407
Frequently Asked Questions
What type of property is this?
Shopping center - C-3-zoned retail center with established restaurant tenancy and full occupancy.
Where is this shopping center located?
The property is located at 5420 Southpoint Plaza Way Fredericksburg, VA.
What is the asking price?
The asking price for this property is $2,830,000.
What are key features of this property?
This property features: 7,758‑square‑foot shopping center built in 2008; Three‑tenant retail property with 100% occupancy; Tenants include Chipotle Mexican Grill, Quickway Japanese Hibachi, and Clean Eatz
