Mixed-Use Investment
For Sale
$2,200,000
938-950 Shelburne Road, South Burlington, VT 05403
Rare mixed-use property with residential and commercial units.
Property Size8,136 SF
Price / SF$270.40
Days on Market282
Property Features for 938-950 Shelburne Road
General Information
Standard status
Active
Size
8,136 SF
Property subtype
Multi-family
Building Details
Year Built
1966
Listing Agency:
Cannizzaro Real Estate
(802) 238-2010
Listed By:
Paul Cannizzaro
(802) 238-2010
Source:
Vthomesonline
Added: Nov 20, 2025
Changed: Aug 28
Last Checked: Aug 29 at 11:05AM
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 Cannizzaro Real Estate
Investment Insights
Based on property information with market context.
This mixed-use property features ten bedrooms across six residential units and two commercial units. It presents an opportunity for investors and owner-users. Rental Housing Fire Safety inspections are complete. The property is positioned for a business owner seeking a visible location with signage, traffic, and self-management. Residential units are rented below market, with most tenants on month-to-month leases. A renovated 1,500-square-foot unit features new flooring, paint, and countertops. The property includes a 3,458-square-foot brick building with four apartments and a 4,672-square-foot wood-frame building with two upstairs apartments and two first-floor commercial spaces with a heated basement and garage door access. The commercial area is divided into offices but can be opened to create a showroom layout. The lot offers 148 feet of frontage on Shelburne Road and 128 feet of depth on Brewer Parkway. The investment package includes vacancy, making it attractive for an owner-user who can occupy approximately 2,334 square feet of commercial space while collecting rent from the six residential units. Onsite parking, visibility with 30,000 CPD, curb appeal, and a signalized intersection are additional features. The location has a bike score of 46, a walk score of 27, and a transit score of 23.
Key Highlights
- Exceptional owner‑user opportunity with 2,334 SF of commercial space available while generating income from six residential units.
- High‑visibility location on Shelburne Road with 148 feet of frontage and strong traffic counts (30,000 CPD).
- Significant income upside potential by increasing residential rents to market rates.
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
$79,580
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
3.62%
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%
$1,591,600
$1.6M
Cap Rate 7%
$1,136,857
$1.1M
Cap Rate 9%
$884,222
$884.2K
Market Conditions
NOI Build-Up for 8,136 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
$146.4K $18.00/SF
− Vacancy
−$1.8K −$0.22/SF
EGI
$144.7K $17.78/SF
− OpEx
−$65.1K −$8.00/SF
NOI
$79.6K $9.78/SF
Area
Chittenden County, VT
Vacancy
1.20%
Lease Rate
$18.00 /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%
$1,591,600
Cap Rate 7%
$1,136,857
Cap Rate 9%
$884,222
Alternative Uses
Best Use
Apartment 5plus
$1.14M
$994.8K – $1.33M
NOI $79,580 @ 7.0% cap · market cap 3.62%
Second Best
Mixed Use
$1.12M
$979.7K – $1.31M
NOI $78,374 @ 7.0% cap · market cap 3.56%
Theoretical Best
Office A
$2.23M
$1.95M – $2.60M
NOI $156,211 @ 7.0% cap · market cap 7.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
568
Businesses Nearby
Explore this area
Business Placement
Demographics for 05403, VT
20,166
Population
9,565
Households
2.1
Avg Household Size
41
Median Age
65%
College-Educated
98%
High-School Grad
16.4 sq mi
ZIP Area
1,230
Density / Sq Mi
$97,041
Median Household Income
$54,362
Median Earnings
$1,755
Median Rent
$399,100
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Rare mixed-use property with residential and commercial units.
Where is this mixed-use property located?
The property is located at 938-950 Shelburne Road South Burlington, VT.
What is the asking price?
The asking price for this property is $2,200,000.
What are key features of this property?
This property features: Exceptional owner‑user opportunity with **2,334 SF of commercial space available** while generating income from six residential units.; High‑visibility location on Shelburne Road with 148 feet of frontage and strong traffic counts (30,000 CPD).; Significant income upside potential by increasing residential rents to market rates.
