Automotive Shop with Included
For Sale
$550,000
5858 Jefferson Avenue, Newport News, VA 23605
COMMERCIAL - Newport News, VA
Property Size2,000 SF
Lot Size0.68 Acres
Price / SF$275
Days on Market399
Property Features for 5858 Jefferson Avenue
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C1
Subdivision
PARK VIEW - 046
Standard status
Active
Size
2,000 SF
Lot size
0.68 Acres
Taxes and HOA fees
Tax Annual Amount
3872
Utilities
Heating system
Oil, Hot Water(Heating), Steam
Cooling system
Wall/Window Unit(s)
Building Details
Year built
1971
Roof type
Tar/Gravel
Listing Agency:
Garrett Realty Partners
(757) 873-1002
Listed By:
Greg Garrett · License #0225071029
(757) 873-1002
Added: Jul 9, 2025
Changed: Aug 10
Last Checked: Aug 11 at 8:06PM
MLS# 10592079
Copyright © 2026 Real Estate Information Network, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
5858 Jefferson Avenue in Newport News, VA 23605 is a large C-1 zoned automotive shop property. The current operation is an automotive shop, with the building, business, and equipment included.
The property includes a 2,000 SF building on a 0.68-acre lot. The building was constructed in 1971, and the roof is listed as tar/gravel. Heating is provided via hot water (heating), oil, and steam systems, with cooling through wall/window unit(s).
This setup supports an automotive-focused tenant looking for an existing shop environment, while the included building, business, and equipment can reduce upfront operational needs for a qualified operator.
The property includes a 2,000 SF building on a 0.68-acre lot. The building was constructed in 1971, and the roof is listed as tar/gravel. Heating is provided via hot water (heating), oil, and steam systems, with cooling through wall/window unit(s).
This setup supports an automotive-focused tenant looking for an existing shop environment, while the included building, business, and equipment can reduce upfront operational needs for a qualified operator.
Key Highlights
- C‑1 zoning with current automotive shop operation
- 2,000 SF building on a 0.68‑acre lot
- Building, business, and equipment included
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
$16,837
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
3.06%
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%
$336,740
$336.7K
Cap Rate 7%
$240,529
$240.5K
Cap Rate 9%
$187,078
$187.1K
Market Conditions
NOI Build-Up for 2,000 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
$24.7K $12.36/SF
− Vacancy
−$667 −$0.33/SF
EGI
$24.1K $12.03/SF
− OpEx
−$7.2K −$3.61/SF
NOI
$16.8K $8.42/SF
Area
Newport News, VA
Vacancy
2.70%
Lease Rate
$12.36 /SF/Yr
Expense Ratio
30.00%
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%
$336,740
Cap Rate 7%
$240,529
Cap Rate 9%
$187,078
Alternative Uses
Best Use
Retail
$240.5K
$210.5K – $280.6K
NOI $16,837 @ 7.0% cap · market cap 3.06%
Second Best
Industrial
$188.5K
$164.9K – $219.9K
NOI $13,195 @ 7.0% cap · market cap 2.40%
Theoretical Best
Office A
$424.8K
$371.7K – $495.6K
NOI $29,733 @ 7.0% cap · market cap 5.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
284
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 23605, VA
14,053
Population
6,944
Households
2
Avg Household Size
37
Median Age
18%
College-Educated
91%
High-School Grad
3.7 sq mi
ZIP Area
3,798
Density / Sq Mi
$52,899
Median Household Income
$36,286
Median Earnings
$1,187
Median Rent
$178,400
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
- Pop's Towing & Recovery — 4709 Jefferson Ave #2123, Newport News, VA 23607
- Newport News Truck & Trailer Repair — 4813 Jefferson Ave, Newport News, VA 23607
- Alfonso's Auto Repair — 4610 Jefferson Ave, Newport News, VA 23607
- M&J Car Solutions — 4915 Jefferson Ave, Newport News, VA 23607
- Lifetime Automotive Repair & Service — 5302 Jefferson Ave, Newport News, VA 23605
Frequently Asked Questions
What type of property is this?
Auto shop - Zoned C-1 and currently operating as an automotive shop in a 1971-built building with included building, business, and equipment.
Where is this auto shop located?
The property is located at 5858 Jefferson Avenue Newport News, VA.
What is the asking price?
The asking price for this property is $550,000.
What are key features of this property?
This property features: C‑1 zoning with current automotive shop operation; 2,000 SF building on a 0.68‑acre lot; Building, business, and equipment included
