Redevelopment Opportunity Former Bank
For Sale
Contact for pricing
1221 E Little Creek Rd, Norfolk, VA 23518
4,862 SF property on 1.23 AC for redevelopment.
Property Size4,862 SF
Lot Size1.23 Acres
Price / SF$195.39
Days on Market549
Property Features for 1221 E Little Creek Rd
General Information
Standard status
Active
Size
4,862 SF
Lot size
1.23 Acres
Property subtype
Retail
Building Details
Buildings
1
Stories
1
Listing Agency:
Harvey Lindsay Commercial Real Estate
Listed By:
Ryan King · License #VA
(757) 640-8210
Source:
Crexi
Added: Mar 4, 2025
Changed: Aug 13
Last Checked: Sep 2 at 10:24AM
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 Harvey Lindsay Commercial Real Estate
Investment Insights
Based on property information with market context.
The property features a 4,862 square foot building situated on a 1.23-acre lot. Formerly a Sun Trust and Truist bank branch, the site includes three drive-thru lanes, a concrete parking lot with 58 spaces, and landscaping. It offers superior ingress and egress at the intersection of E. Little Creek Road, which sees 33,782 vehicles per day, and Military Highway, with 22,403 vehicles per day. The location is part of a commercially active area with stores, fast food establishments, and auto sales, serving the residents of Ocean View, Bayview, and Larrymore Lawns. This property is suitable for redevelopment or reuse as a bank branch.
Key Highlights
- High traffic location: E. Little Creek Road (33,782 VPD) and Military Highway (22,403 VPD)
- Large 1.23 AC lot
- Existing infrastructure: Features three (3) drive‑thru lanes and 58 parking spaces
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
$60,594
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
6.38%
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%
$1,211,880
$1.2M
Cap Rate 7%
$865,629
$865.6K
Cap Rate 9%
$673,267
$673.3K
Market Conditions
NOI Build-Up for 4,862 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
$84.6K $17.40/SF
− Vacancy
−$3.8K −$0.78/SF
EGI
$80.8K $16.62/SF
− OpEx
−$20.2K −$4.15/SF
NOI
$60.6K $12.46/SF
Area
Norfolk, VA
Vacancy
4.50%
Lease Rate
$17.40 /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%
$1,211,880
Cap Rate 7%
$865,629
Cap Rate 9%
$673,267
Alternative Uses
Best Use
Specialty Retail
$865.6K
$757.4K – $1.01M
NOI $60,594 @ 7.0% cap · market cap 6.38%
Second Best
Retail
$788.7K
$690.1K – $920.2K
NOI $55,210 @ 7.0% cap · market cap 5.81%
Theoretical Best
Office A
$1.03M
$902.5K – $1.20M
NOI $72,198 @ 7.0% cap · market cap 7.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
731
Businesses Nearby
123k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 66%
Dining 20%
Groceries 14%
Wawa
Shops & Services
47,891 visits/mo
0.2 miles
Aldi
Groceries
16,767 visits/mo
0.5 miles
Wendy's
Dining
13,371 visits/mo
0.3 miles
Little Caesars Pizza
Dining
7,137 visits/mo
0.4 miles
Bank of America
Shops & Services
6,921 visits/mo
0.5 miles
Demographics for 23518, VA
30,278
Population
13,911
Households
2.2
Avg Household Size
37
Median Age
32%
College-Educated
91%
High-School Grad
6.1 sq mi
ZIP Area
4,964
Density / Sq Mi
$73,899
Median Household Income
$47,605
Median Earnings
$1,348
Median Rent
$280,200
Median Home Value
Market
Vacancy Rate% for Retail in Norfolk, VA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Bank - 4,862 SF property on 1.23 AC for redevelopment.
Where is this bank located?
The property is located at 1221 E Little Creek Rd Norfolk, VA.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: High traffic location: E. Little Creek Road (33,782 VPD) and Military Highway (22,403 VPD); Large 1.23 AC lot; Existing infrastructure: Features three (3) drive‑thru lanes and 58 parking spaces
