Five-Bay Automotive Service
New
For Sale
$425,000
222 Railroad Ave, Dover, DE 19904
Existing improvements include multiple service bays, a detached shed, and two buildings requiring repairs and upgrades.
Property Size2,250 SF
Price / SF$188.89
Days on Market2
Property Features for 222 Railroad Ave
General Information
Standard status
Active
Size
2,250 SF
Property Condition
Severity
Repairs Needed
Evidence
need upgrading and repairs
Additional Details
Road Access
Yes
Land Use
commercial
Service Bays
5
Amenities
shed
5 bays
Building Details
Year Built
1980
Buildings
2
Listing Agency:
Myers Realty
(302) 670-1567
Listed By:
Barbara Miller
Source:
Premierehomegroup
Added: Sep 1
Last Checked: Sep 1 at 5:38PM
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 Myers Realty
Investment Insights
Based on property information with market context.
This automotive property consists of two commercial buildings, one shed, and five bays on more than 14,000 square feet of land. The site was previously used for cycle and automotive service, with existing improvements requiring repairs and upgrades. Two commercial properties are being offered together.
Located in downtown Dover, the property sits along a private road adjacent to railroad tracks and near the end of Loockerman St. The site is close to the Duncan Center, DAFB, Bally’s Casino, the mall, and shopping centers. Beaches and Routes 1, I-95, and Route 301 are within a short drive.
Located in downtown Dover, the property sits along a private road adjacent to railroad tracks and near the end of Loockerman St. The site is close to the Duncan Center, DAFB, Bally’s Casino, the mall, and shopping centers. Beaches and Routes 1, I-95, and Route 301 are within a short drive.
Key Highlights
- More than 14,000 square feet of land in downtown Dover
- Two commercial properties offered together
- Two buildings, one shed, and 5 bays
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
$25,216
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
5.93%
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%
$504,320
$504.3K
Cap Rate 7%
$360,229
$360.2K
Cap Rate 9%
$280,178
$280.2K
Market Conditions
NOI Build-Up for 2,250 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
$36.7K $16.32/SF
− Vacancy
−$698 −$0.31/SF
EGI
$36.0K $16.01/SF
− OpEx
−$10.8K −$4.80/SF
NOI
$25.2K $11.21/SF
Area
Kent County, DE
Vacancy
1.90%
Lease Rate
$16.32 /SF/Yr
Expense Ratio
30.00%
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%
$504,320
Cap Rate 7%
$360,229
Cap Rate 9%
$280,178
Alternative Uses
Best Use
Industrial
$360.2K
$315.2K – $420.3K
NOI $25,216 @ 7.0% cap · market cap 5.93%
Second Best
Retail
$292.2K
$255.7K – $340.9K
NOI $20,455 @ 7.0% cap · market cap 4.81%
Theoretical Best
Office A
$566.6K
$495.7K – $661.0K
NOI $39,659 @ 7.0% cap · market cap 9.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Service bays
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
3,378
Businesses Nearby
34k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 89%
Dining 11%
Royal Farms
Shops & Services
23,034 visits/mo
0.5 miles
M&T Bank
Shops & Services
4,988 visits/mo
0.5 miles
Krispy Krunchy Chicken
Dining
3,678 visits/mo
0.1 miles
Napa Auto Parts
Shops & Services
1,896 visits/mo
0.1 miles
Demographics for 19904, DE
36,880
Population
16,047
Households
2.3
Avg Household Size
38
Median Age
27%
College-Educated
91%
High-School Grad
43.2 sq mi
ZIP Area
854
Density / Sq Mi
$66,885
Median Household Income
$39,459
Median Earnings
$1,240
Median Rent
$281,000
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.
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Frequently Asked Questions
What type of property is this?
Auto shop - Existing improvements include multiple service bays, a detached shed, and two buildings requiring repairs and upgrades.
Where is this auto shop located?
The property is located at 222 Railroad Ave Dover, DE.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: More than 14,000 square feet of land in downtown Dover; Two commercial properties offered together; Two buildings, one shed, and 5 bays
