Oceanfront Ground-Floor Retail
For Sale
$1,175,000
1 Virginia Avenue, Rehoboth Beach, DE 19971
Boardwalk-facing commercial space offers subdivision potential within a condominium building.
Property Size6,500 SF
Price / SF$180.77
Days on Market554
Property Features for 1 Virginia Avenue
General Information
Standard status
Active
Size
6,500 SF
Property subtype
Retail
Amenities
Central Air, Heat Pump, Ceiling Fan(s)
3
Concrete, Carpet
TN
No Parking.
Ocean
0.00 x 0.00
Ocean.
Building Details
Year Built
1974
Listing Agency:
Cape Realty
(302) 265-7400
Listed By:
Brent Reed · License #RS-0036674
(302) 265-7400
Source:
Xome
Added: Feb 22, 2025
Changed: Aug 29
Last Checked: Aug 29 at 10:44PM
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 Cape Realty
Investment Insights
Based on property information with market context.
This ground-floor commercial condominium contains approximately 6,500 square feet of oceanfront retail space on the Rehoboth Beach boardwalk. The layout may be divided into multiple retail or office suites, providing flexibility within the existing footprint. Interior features include central air, heat pump service, ceiling fans, concrete, and carpet finishes.
The property is situated at 1 Virginia Avenue, directly along the Rehoboth Beach boardwalk and adjacent to the Atlantic Ocean. The building, One Virginia Avenue, was constructed in 1974. Current tenants have operated at the property for more than 25 years. No on-site parking is provided.
The property is situated at 1 Virginia Avenue, directly along the Rehoboth Beach boardwalk and adjacent to the Atlantic Ocean. The building, One Virginia Avenue, was constructed in 1974. Current tenants have operated at the property for more than 25 years. No on-site parking is provided.
Key Highlights
- Approximately 6,500 square feet of oceanfront commercial space
- Ground‑floor location in the One Virginia Avenue condominium building
- Direct position on the Rehoboth Beach boardwalk
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
$58,269
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
4.96%
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%
$1,165,380
$1.2M
Cap Rate 7%
$832,414
$832.4K
Cap Rate 9%
$647,433
$647.4K
Market Conditions
NOI Build-Up for 6,500 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
$89.7K $13.80/SF
− Vacancy
−$6.5K −$0.99/SF
EGI
$83.2K $12.81/SF
− OpEx
−$25.0K −$3.84/SF
NOI
$58.3K $8.96/SF
Area
Sussex County, DE
Vacancy
7.20%
Lease Rate
$13.80 /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%
$1,165,380
Cap Rate 7%
$832,414
Cap Rate 9%
$647,433
Alternative Uses
Best Use
Retail
$832.4K
$728.4K – $971.2K
NOI $58,269 @ 7.0% cap · market cap 4.96%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.79M
$1.56M – $2.08M
NOI $125,034 @ 7.0% cap · market cap 10.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
877
Businesses Nearby
17k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 61%
Apparel 29%
Shops & Services 10%
Grotto Pizza
Dining
5,875 visits/mo
0.2 miles
South Moon Under
Apparel
4,770 visits/mo
0.2 miles
Kilwin's
Dining
2,567 visits/mo
0.3 miles
Dairy Queen
Dining
1,712 visits/mo
0.2 miles
M&T Bank
Shops & Services
1,668 visits/mo
0.5 miles
Demographics for 19971, DE
14,348
Population
16,948
Households
0.8
Avg Household Size
60
Median Age
55%
College-Educated
96%
High-School Grad
18.0 sq mi
ZIP Area
797
Density / Sq Mi
$103,301
Median Household Income
$49,905
Median Earnings
$1,383
Median Rent
$561,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Boardwalk-facing commercial space offers subdivision potential within a condominium building.
Where is this retail space located?
The property is located at 1 Virginia Avenue Rehoboth Beach, DE.
What is the asking price?
The asking price for this property is $1,175,000.
What are key features of this property?
This property features: Approximately 6,500 square feet of oceanfront commercial space; Ground‑floor location in the One Virginia Avenue condominium building; Direct position on the Rehoboth Beach boardwalk
