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    Mixed-Use Property in Prime Location Title is generated by Realmo AI

    12632 SUNSET AVENUE 1 & 3, Ocean City, MD 21842

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    Claim this Listing
    For Sale
    $2,599,900

    Mixed-use property with offices, warehouses, and residential apartment.

    Type:Commercial/Industrial
    Property size:
    13,090 SF
    Lot size:
    1.00 Acre
    Price / SF:
    $198/SF
    Added:
    Feb 3, 2025
    Days on Market:
    487
    Last Refresh:
    Apr 16 at 10:05 pm

    Property Features for 12632 SUNSET AVENUE 1 & 3

    General Information

    Standard status
    Active
    Size
    13,090 SF
    Lot size
    1.00 Acre
    Property subtype
    Commercial/Industrial

    Building Details

    Year Built
    1968

    We can help!

    Listing Contact
    Lauren Bunting
    Lauren Bunting

    Listing agent Lauren Bunting License #581537

    Listing office Keller Williams Realty Delmarva

    Listing date Feb 3, 2025

    Source Exitrealty

    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 Keller Williams Realty Delmarva

    HighLights

    • Prime West Ocean City location on 1‑acre, commercially zoned (C‑2) site with 95 feet of frontage on Sunset Ave.
    • Mixed‑use property offering two offices, two warehouses and a 3‑bedroom/1.5‑bath apartment.
    • Unit 3 warehouse features 5,050 sq ft, corrugated metal construction, electric throughout, multiple roll‑up doors, and a 20’ ceiling height.
    • Includes a renovated (2023) 3‑bedroom apartment with updated kitchen, water treatment system, and updated heating system.
    • Property includes a generator powered by an above‑ground propane tank.
    • Property conveys with two Equivalent Dwelling Units (EDUs).

    Overview

    This mixed-use property is located in West Ocean City on a 1-acre, commercial C-2 zoned site with 95 feet of frontage on Sunset Ave. The property includes two offices, two warehouses, a second-floor apartment with three bedrooms and 1.5 bathrooms, and a side yard. Unit 1 features two separate office units with separate entrances off a covered foyer, totaling approximately 1,500 square feet of office space. The warehouse behind Unit 1 offers approximately 6,040 square feet. The apartment, located on the second floor, is approximately 1,500 square feet and includes a renovated kitchen. The offices each have their own restroom, and the warehouse also has its own restroom, multiple access points, and roll-up doors. Unit 3 comprises a 5,050 square foot corrugated metal warehouse with electric throughout, multiple roll-up doors, a 20-foot ceiling height, and a restroom. The property operates on a private well and public sewer. The apartment includes a water treatment system and an updated heating system. A generator powered by an above-ground propane tank is also present. The property conveys with two EDU’s. The sale includes Units 1 and 3 of a three-unit condominium complex. The condo association does not currently collect dues. There are two owners within the condo association who handle their own insurances and expenses.

    Local Financial Insights For Office B

    Simulate Cap Rate and NOI

    NOI Build-Up
    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.

    Component $ $/SF
    Gross rent $290.6k $22.20
    − Vacancy −$46.5k −$3.55
    EGI $244.1k $18.65
    − OpEx −$61.0k −$4.66
    NOI $183.1k $13.99
    13,090 SF · lease $22.20/SF/yr · vacancy 16.00% · expense 25.00%

    Alternative Uses

    Best Use
    Office B
    $2.62M
    $2.29M – $3.05M (±1% cap)
    NOI $183,077 @ 7.0% cap · market cap 7.04%
    Second Best
    Mixed Use
    $1.89M
    $1.66M – $2.21M (±1% cap)
    NOI $132,536 @ 7.0% cap · market cap 5.10%
    Theoretical Best
    Office A
    $3.15M
    $2.75M – $3.67M (±1% cap)
    NOI $220,195 @ 7.0% cap · market cap 8.47%
    Zoning and permitted uses should be independently verified with local authorities.
    Location Intelligence

    Current Use by Public Records

    Atlantic Skate Inc (Bike/Boat/Book/etc) Store

    Suggested Use

    Real Estate Agency Law Firm Restaurant Spa & Massage Center Dental Office Hair Salon Nail Salon Building Supply Auto Repair Shop Gym & Fitness Center

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Ocean City
    County
    Worcester
    State
    Maryland
    Longitude
    -75.114638
    Latitude
    38.3272583

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    • $2,599,900
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      Mixed-Use Property in West Ocean

      Unique mixed-use property with offices, warehouses, and apartment.
      12632 SUNSET AVENUE 1 & 3, OCEAN CITY, MD 21842
      View Details

    FAQs

    What type of property is this?
    Mixed-use property - Mixed-use property with offices, warehouses, and residential apartment.
    Where is this mixed-use property located?
    The property is located at 12632 SUNSET AVENUE 1 & 3 Ocean City, MD.
    What is the asking price?
    The asking price for this property is $2,599,900.
    What are key features of this property?
    This property features: Prime West Ocean City location on 1‑acre, commercially zoned (C‑2) site with 95 feet of frontage on Sunset Ave.; Mixed‑use property offering two offices, two warehouses and a 3‑bedroom/1.5‑bath apartment.; Unit 3 warehouse features 5,050 sq ft, corrugated metal construction, electric throughout, multiple roll‑up doors, and a **20’ ceiling height**.
    (410) 422-9899
    We can help!
    Listing Contact
    Lauren Bunting
    Lauren Bunting
    Real Estate License ID: 581537
    Learn More
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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