Mixed-Use Building with Coffee
For Sale
$1,400,000
109 Baltimore Ave, Ocean City, MD 21842
DMX-zoned property combines an approved coffee shop buildout with a substantial residential component.
Property Size3,908 SF
Price / SF$358.24
Days on Market33
Property Features for 109 Baltimore Ave
General Information
Standard status
Active
Size
3,908 SF
Zoning
DMX
Building Details
Year Built
1935
Buildings
1
Listing Agency:
Coldwell Banker Realty
(724) 840-0572
Listed By:
Shawn Kotwica · License #653192
Source:
Kandorre
Added: Jul 28
Changed: Aug 28
Last Checked: Aug 28 at 12:48PM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This 3,908-square-foot mixed-use property, built in 1935, combines an approved coffee shop buildout with a five-bedroom, 3.5-bath residence. The layout includes generous living areas, an unfinished lower level, and on-site parking. The lower level offers additional space for future residential, rental, or recreational use as permitted.
Zoned DMX, the property supports both residential and commercial use. Its address at 109 Baltimore Ave places it in downtown Ocean City, Maryland, within a short walk of the beach, Ocean City Boardwalk, Trimper Rides, Jolly Roger Amusement Park, and Thrasher’s Fries. The building’s mixed-use configuration provides a combination of existing residential space and commercial buildout.
Zoned DMX, the property supports both residential and commercial use. Its address at 109 Baltimore Ave places it in downtown Ocean City, Maryland, within a short walk of the beach, Ocean City Boardwalk, Trimper Rides, Jolly Roger Amusement Park, and Thrasher’s Fries. The building’s mixed-use configuration provides a combination of existing residential space and commercial buildout.
Key Highlights
- 3,908 SF mixed‑use property at 109 Baltimore Ave, Ocean City, MD 21842
- Five‑bedroom, 3.5‑bath residential component
- Approved coffee shop currently being built out
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
$56,094
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
4.01%
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%
$1,121,880
$1.1M
Cap Rate 7%
$801,343
$801.3K
Cap Rate 9%
$623,267
$623.3K
Market Conditions
NOI Build-Up for 3,908 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
$78.3K $20.04/SF
− Vacancy
−$3.5K −$0.90/SF
EGI
$74.8K $19.14/SF
− OpEx
−$18.7K −$4.78/SF
NOI
$56.1K $14.35/SF
Area
Worcester County, MD
Vacancy
4.50%
Lease Rate
$20.04 /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%
$1,121,880
Cap Rate 7%
$801,343
Cap Rate 9%
$623,267
Alternative Uses
Best Use
Specialty Retail
$801.3K
$701.2K – $934.9K
NOI $56,094 @ 7.0% cap · market cap 4.01%
Second Best
Retail
$576.9K
$504.8K – $673.1K
NOI $40,386 @ 7.0% cap · market cap 2.88%
Theoretical Best
Office A
$939.1K
$821.7K – $1.10M
NOI $65,739 @ 7.0% cap · market cap 4.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,010
Businesses Nearby
13k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Hotels & Casinos 85%
Shops & Services 15%
Cambria Hotel Ocean City - Bayfront
Hotels & Casinos
10,467 visits/mo
0.2 miles
7-Eleven
Shops & Services
1,899 visits/mo
0.2 miles
Comfort Inn
Hotels & Casinos
416 visits/mo
0.2 miles
Demographics for 21842, MD
11,104
Population
32,684
Households
0.3
Avg Household Size
53
Median Age
39%
College-Educated
95%
High-School Grad
9.2 sq mi
ZIP Area
1,207
Density / Sq Mi
$75,372
Median Household Income
$40,189
Median Earnings
$1,258
Median Rent
$415,900
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?
Mixed-use property - DMX-zoned property combines an approved coffee shop buildout with a substantial residential component.
Where is this mixed-use property located?
The property is located at 109 Baltimore Ave Ocean City, MD.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: 3,908 SF mixed‑use property at 109 Baltimore Ave, Ocean City, MD 21842; Five‑bedroom, 3.5‑bath residential component; Approved coffee shop currently being built out
