Building Details

Year Built 1990

Buildings 1

Building Size 975 SF

Construction concrete/masonry

Listing Agency: Crown Homes Real Estate Show Phone

Listed By: Michael Mulski · License #RS0040131 Show Phone

Source: Cummingsrealtors

Added: Jul 28 Changed: Aug 25 Last Checked: Aug 24 at 5:19AM

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Investment Insights

Based on property information with market context.

This Route 16 convenience-store and mixed-use site sits on approximately 0.65 acre and includes a 975± SF solid concrete/masonry building (built in 1990). The construction type is well suited to durable roadside retail, service, garage, storage, and related uses, and the property has historically been marketed for garage, small-engine repair, and store use.

Public records identify the parcel as AR-1 with commercial land use. The location is positioned between established fuel/convenience destinations, with the nearest major options approximately 3.1 miles west (Royal Farms and Exxon) and Milton Quick Stop approximately 3.7 miles east toward Milton. Nearby residential growth includes Captain’s Way, a 301-lot community with homes along Northstar Drive approximately 0.5 mile from the property.

The property previously had a single-wide manufactured home. Sussex County AR-1 zoning regulations permit a qualifying manufactured home to be used as a detached single-family dwelling on an individual lot, subject to applicable county requirements and approvals. Buyers should independently verify all zoning, septic, well, entrance, fuel-system, and other required approvals for any re-establishment or combined residential and commercial use.

Key Highlights

• Approximately 0.65‑acre site with a 975± SF solid concrete/masonry building
• Built in 1990
• AR‑1 zoning with commercial land use per public records

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

$11,807

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

5.65%

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%

$236,140 $236.1K

Cap Rate 7%

$168,671 $168.7K

Cap Rate 9%

$131,189 $131.2K

Market Conditions

NOI Build-Up for 975 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

$17.6K $18.00/SF

− Vacancy

−$1.8K −$1.85/SF

EGI

$15.7K $16.15/SF

− OpEx

−$3.9K −$4.04/SF

NOI

$11.8K $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%

$236,140

Cap Rate 7%

$168,671

Cap Rate 9%

$131,189

Alternative Uses

Best Use

Specialty Retail

$168.7K

$147.6K – $196.8K (±1% cap)

NOI $11,807 @ 7.0% cap · market cap 5.65%

Second Best

Retail

$124.9K

$109.3K – $145.7K (±1% cap)

NOI $8,740 @ 7.0% cap · market cap 4.18%

Theoretical Best

Office A

$267.9K

$234.4K – $312.6K (±1% cap)

NOI $18,755 @ 7.0% cap · market cap 8.97%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Grocery and convenience stores

Suggested Use

Top Pick HVAC Service Auto Repair Shop

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

11

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 19941, DE

2,857

Population

1,273

Households

2.2

Avg Household Size

38

Median Age

17%

College-Educated

83%

High-School Grad

30.3 sq mi

ZIP Area

94

Density / Sq Mi

$66,601

Median Household Income

$43,297

Median Earnings

$1,054

Median Rent

$225,500

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

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Frequently Asked Questions

What type of property is this?

Grocery and convenience store - AR-1 zoned convenience store building with solid concrete/masonry construction on Route 16 between Milton and Ellendale.

Where is this grocery and convenience store located?

The property is located at 20587 MILTON ELLENDALE HIGHWAY Ellendale, DE.

What is the asking price?

The asking price for this property is $209,000.

What are key features of this property?

This property features: Approximately 0.65‑acre site with a 975± SF solid concrete/masonry building; Built in 1990; AR‑1 zoning with commercial land use per public records