Turn-Key Restaurant and
For Sale
$349,000
19 Rehoboth Ave, Rehoboth Beach, DE 19971
Business-only sale includes a new bar, spacious dining room, and convenient take-out area on Rehoboth Avenue.
Property Size2,500 SF
Price / SF$139.60
Days on Market35
Property Features for 19 Rehoboth Ave
General Information
Standard status
Active
Size
2,500 SF
Property subtype
Business Opportunity
Additional Details
Business Included
Yes
Building Details
Year Built
1977
Listing Agency:
Jack Lingo - Rehoboth
(302) 841-4640
Listed By:
Lily Hsu Gosnear · License #RS0036516
Source:
Kandorre
Added: Jul 18
Changed: Aug 13
Last Checked: Aug 21 at 9:41AM
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 Jack Lingo - Rehoboth
Investment Insights
Based on property information with market context.
Ocean block Rehoboth Avenue turn-key restaurant/bar offered for sale as a business only. The space features a new bar, a spacious dining room, and a convenient take-out area designed to support both seated service and quick orders.
The property is positioned in the heart of downtown Rehoboth Beach on Rehoboth Avenue, offering walk-in appeal consistent with a central retail corridor.
The seller will share recipes and provide training, supporting continuity of the current concept, or allowing a new operator to bring their own plan.
The property is positioned in the heart of downtown Rehoboth Beach on Rehoboth Avenue, offering walk-in appeal consistent with a central retail corridor.
The seller will share recipes and provide training, supporting continuity of the current concept, or allowing a new operator to bring their own plan.
Key Highlights
- Ocean block Rehoboth Avenue restaurant/bar (business only)
- New bar included
- Spacious dining room
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
$30,274
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
8.67%
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%
$605,480
$605.5K
Cap Rate 7%
$432,486
$432.5K
Cap Rate 9%
$336,378
$336.4K
Market Conditions
NOI Build-Up for 2,500 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
$45.0K $18.00/SF
− Vacancy
−$4.6K −$1.85/SF
EGI
$40.4K $16.15/SF
− OpEx
−$10.1K −$4.04/SF
NOI
$30.3K $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%
$605,480
Cap Rate 7%
$432,486
Cap Rate 9%
$336,378
Alternative Uses
Best Use
Specialty Retail
$432.5K
$378.4K – $504.6K
NOI $30,274 @ 7.0% cap · market cap 8.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$687.0K
$601.1K – $801.5K
NOI $48,090 @ 7.0% cap · market cap 13.78%
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
890
Businesses Nearby
17k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 61%
Apparel 29%
Shops & Services 10%
Grotto Pizza
Dining
5,875 visits/mo
0.1 miles
South Moon Under
Apparel
4,770 visits/mo
0.1 miles
Kilwin's
Dining
2,567 visits/mo
0.1 miles
Dairy Queen
Dining
1,712 visits/mo
0.0 miles
M&T Bank
Shops & Services
1,668 visits/mo
0.4 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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Shorebreak Lodge — 10 Wilmington Ave, Rehoboth Beach, DE 19971
- Lupo Italian Kitchen — 247 Rehoboth Ave, Rehoboth Beach, DE 19971
- Dos Locos — 208 Rehoboth Ave, Rehoboth Beach, DE 19971
- Aqua Bar & Grill — 57 Baltimore Ave, Rehoboth Beach, DE 19971
- Sussex Public House — 234 Rehoboth Ave, Rehoboth Beach, DE 19971
Frequently Asked Questions
What type of property is this?
Bar & Pub - Business-only sale includes a new bar, spacious dining room, and convenient take-out area on Rehoboth Avenue.
Where is this bar & pub located?
The property is located at 19 Rehoboth Ave Rehoboth Beach, DE.
What is the asking price?
The asking price for this property is $349,000.
What are key features of this property?
This property features: Ocean block Rehoboth Avenue restaurant/bar (business only); New bar included; Spacious dining room
