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Blue Star Diner 9955 Warwick Blvd

3,624 SF Retail Building Newport News, VA 23601 $675,000 ($186/SF) 14.34% Cap Rate

Investment Highlights

  • THE BLUE STAR DINER - HISTORIC & WELL KNOWN - Only 2nd time on market in 65 years - RARE OPPORTUNITY.
  • Columbia Pictures rented the The Blue Star Diner® to film scenes for the 1988 movie 'Zelly and Me'.
  • MANY POSSIBLE USES IN ADDITION TO RESTAURANT USE.
  • Two (2) Land Parcels forming unique 0.6555 acre large corner lot on busy Warwick Blvd (27,000 vehicles per weekday). Adjacent to Hilton Village.
  • The approved blueprint files used for the Building Permit issued to Belleville Diners LLC will be provided to new owner.
  • Located in a Virginia Enterprise Zone (VEZ #3) - grant opportunities!

Executive Summary

** OPEN TO ALL OFFERS ** WIDE VARIETY OF POSSIBLE USES IN ADDITION TO RESTAURANT. **
THE BLUE STAR DINER - HISTORIC & WELL KNOWN
Only 2nd time on market in 65 years - RARE OPPORTUNITY.
The Blue Star Diner® has been a very popular fixture in the Hilton Village area of Newport News, Virginia for over 60 years. Located directly on busy Warwick Boulevard and nearby large residential areas, it has always been a popular spot for breakfast, lunch, and dinner. The diner sits on the route to and from the large Newport News Shipbuilding facility and has always been a frequent gathering place for workers going to or from their shifts.
The original, classic American diner was built circa 1957 by the Manno Dining Car Company of New Jersey and moved to its present location from Woodstock, Virginia circa 1961. The diner was placed in front of a pre-existing garage which became a supplemental rear kitchen. The area between the diner and the former garage was then joined (forming a “mid-kitchen” area). Circa 1978, a sloped metal roof was added above the diner’s original (barrel/curved) metal roof (which still exists intact underneath). The diner and rear kitchen space total 1,901 square feet. Additionally, attached to the kitchen is believed to be a 1940’s / World War II Quonset hut (see photos in PDF brochure), with supplemental roof and wood siding, and a cinderblock rectangular room added to the rear. This supplemental 1,723 sq foot area has typically been leased out for various retail uses, including most recently as an antique furniture store. That space is envisioned now as a retail space again, or as a potential future dining room expansion area. Because of the Quonset hut structure, the space features a unique curved ceiling which presents many creative opportunities for exciting interior design.
NEON SIGNAGE
In the Diner’s front parking lot along Warwick Boulevard is a dramatic, freestanding, double-sided pylon sign with electrified neon lettering. It is clearly visible to all traffic in both directions. While the neon glass tubing needs some repair, the sign is repairable back to its original condition. The sign also features a large neon star located at the top of the sign.
RENTED AS A MOVIE SET
Columbia Pictures rented the The Blue Star Diner® to film scenes for the 1988 movie 'Zelly and Me'. The drama film starred Isabella Rossellini, David Lynch, Glynis Johns, and Alexandra Johnes. In years since, the diner has been used many times for car magazine photography and fashion photo shoots. In Spring of 2023, the diner again was rented by a major production studio to film scenes for a soon to be released production.
NATIONAL REGISTER OF HISTORIC PLACES & VIRGINIA LANDMARKS REGISTER PAPERWORK STARTED:
Initial nomination package written and submitted to the Commonwealth of Virginia in pursuit of the honor of being listed on both the Virginia and National historic registers. The State Review Board concurred with the Virginia Department of Historic Resources in recommending nomination to the national and state historic registers. Additional paperwork is required for completion of the process by the next owner. Should the diner be listed, the next owner could potentially receive tax credit benefits.
RENOVATION PROGRESS
In 2010, The Blue Star Diner® was purchased by Washington, DC area company Belleville Diners LLC. The company worked with a leading Newport News area architect to develop restoration blueprints which were successfully approved by the City of Newport News and the Virginia Health Department. While a lot of on-site work has already been completed, there is still more to complete. Renovation work performed thus far under the Building Permit was inspected and approved during the process by the City. The next owner can continue the work using the same blueprints if desired, or the new owner can modify to their preferences. The approved blueprint files used for the renovation work will be provided to new owner. New owner will need to resubmit for permit under their own name.

Financial Summary (Pro forma - 2022)

Annual Annual Per SF
Gross Rental Income $102,000 $28.15
Other Income - -
Vacancy Loss - -
Effective Gross Income $102,000 $28.15
Taxes $3,264 $0.90
Operating Expenses $1,920 $0.53
Total Expenses $5,184 $1.43
Net Operating Income $96,816 $26.72

Financial Summary (Pro forma - 2022)

Gross Rental Income
Annual $102,000
Annual Per SF $28.15
Other Income
Annual -
Annual Per SF -
Vacancy Loss
Annual -
Annual Per SF -
Effective Gross Income
Annual $102,000
Annual Per SF $28.15
Taxes
Annual $3,264
Annual Per SF $0.90
Operating Expenses
Annual $1,920
Annual Per SF $0.53
Total Expenses
Annual $5,184
Annual Per SF $1.43
Net Operating Income
Annual $96,816
Annual Per SF $26.72

Property Facts

Sale Type
Investment or Owner User
Sale Condition
Historical Site
Property Type
Retail
Property Subtype
Restaurant
Building Size
3,624 SF
Building Class
B
Year Built/Renovated
1957/2021
Price
$675,000
Price Per SF
$186
Cap Rate
14.34%
NOI
$96,816
Tenancy
Multiple
Building Height
1 Story
Building FAR
0.13
Land Acres
0.66 AC
Zoning
C1 - Restaurant use for main building (1,901 SF) and retail use for the adjacent, connected building (1,723 SF).
Parking
72 Spaces (11.04 Spaces per 1,000 SF Leased)
Frontage
124 FT on Warwick Boulevard

Amenities

  • Bus Line
  • Corner Lot
  • Freeway Visibility
  • Pylon Sign
  • Restaurant
  • Signage

PROPERTY TAXES

PROPERTY TAXES

Parcel Numbers
Multiple
  • 266.00-07-36
  • 266.00-07-31
Land Assessment
$293,700 (2023)
Improvements Assessment
$35,700 (2023)
Total Assessment
$329,400 (2023)
Annual Taxes
$3,264 ($0.90/SF)
Tax Year
2022
  • Listing ID: 23412579

  • Date on Market: 6/15/2021

  • Last Updated:

  • Address: 9955 Warwick Blvd, Newport News, VA 23601

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