Operational Restaurant
For Sale
$395,000
109 Union St. 109 Union St. C, Milton, DE 19968
Furniture and equipment are included, with seating for 12 at the bar.
Property Size1,850 SF
Price / SF$213.51
Days on Market37
Property Features for 109 Union St. 109 Union St. C
General Information
Standard status
Active
Size
1,850 SF
Property subtype
Business Opportunity
Additional Details
Furnished
Yes
Business Included
Yes
Equipment Included
Yes
Building Details
Year Built
1912
Listing Agency:
Berkshire Hathaway HomeServices PenFed Realty
Listed By:
SHEILA SETZER, Amy J Kellenberger
Source:
Kableteam
Added: Jul 25
Changed: Aug 28
Last Checked: Aug 29 at 12:01PM
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 Berkshire Hathaway HomeServices PenFed Realty
Investment Insights
Based on property information with market context.
Established restaurant business offered as a fully operational sale in Milton, Delaware. The transaction includes the restaurant’s furniture and equipment, along with a configured service and dining setup featuring 16 tables and a 12-seat bar.
The property is located at 109 Union St. C and was built in 1912. The sale centers on an operating restaurant business with its existing furnishings and equipment in place.
The property is located at 109 Union St. C and was built in 1912. The sale centers on an operating restaurant business with its existing furnishings and equipment in place.
Key Highlights
- Fully operational restaurant business
- Furniture and equipment included
- 16 tables in the existing layout
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
$22,403
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
5.67%
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%
$448,060
$448.1K
Cap Rate 7%
$320,043
$320.0K
Cap Rate 9%
$248,922
$248.9K
Market Conditions
NOI Build-Up for 1,850 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
$33.3K $18.00/SF
− Vacancy
−$3.4K −$1.85/SF
EGI
$29.9K $16.15/SF
− OpEx
−$7.5K −$4.04/SF
NOI
$22.4K $12.11/SF
Area
Sussex County, DE
Vacancy
10.30%
Lease Rate
$18.00 /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%
$448,060
Cap Rate 7%
$320,043
Cap Rate 9%
$248,922
Alternative Uses
Best Use
Specialty Retail
$320.0K
$280.0K – $373.4K
NOI $22,403 @ 7.0% cap · market cap 5.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$508.4K
$444.8K – $593.1K
NOI $35,587 @ 7.0% cap · market cap 9.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
14
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19968, DE
13,800
Population
7,380
Households
1.9
Avg Household Size
53
Median Age
40%
College-Educated
94%
High-School Grad
63.9 sq mi
ZIP Area
216
Density / Sq Mi
$81,646
Median Household Income
$43,088
Median Earnings
$1,408
Median Rent
$418,600
Median Home Value
Market
Vacancy Rate% for Retail in South 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?
Conventional restaurant - Furniture and equipment are included, with seating for 12 at the bar.
Where is this conventional restaurant located?
The property is located at 109 Union St. 109 Union St. C Milton, DE.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: Fully operational restaurant business; Furniture and equipment included; 16 tables in the existing layout
