Residential Income Property with
New
For Sale
$439,000
24565 MERLOT DRIVE, Lewes, DE 19958
Updated condominium residence with flexible living space, screened porch, private elevator, and access to community pools and fitness facilities.
Property Size1,756 SF
Price / SF$250
Days on Market4
Property Features for 24565 MERLOT DRIVE
General Information
Standard status
Active
Size
1,756 SF
Total Parking Spaces
1
Elevators
Yes
Property subtype
Apartment
Additional Details
Multifamily Units
1
Amenities
screened-in porch
community pools
fitness center
walking trails
lake
Building Details
Year Built
2023
Listing Agency:
Jack Lingo - Rehoboth
(302) 258-4590
Listed By:
Lucius Webb · License #RS-0017469
(302) 258-4590
Source:
Cummingsrealtors
Added: Aug 29
Changed: Aug 31
Last Checked: Aug 31 at 3:40PM
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.
Built in 2023, this 1,756-square-foot condominium offers three bedrooms, two bathrooms, and an open interior arrangement connecting the kitchen, dining area, and living room. The home includes 9-foot ceilings, a screened porch overlooking a wooded landscaped setting, a primary suite with walk-in closet and ensuite bath, two additional bedrooms, and space for a home office. A private elevator connects the foyer and one-car garage for convenient access.
The property is located in Lewes, Delaware, within walking distance of restaurants and grocery shopping. Community amenities include two pools, a fitness center, walking trails, and a lake suitable for kayaking. The HOA covers water, exterior maintenance, grounds landscaping, pool and fitness amenities, and the master insurance policy, leaving owners responsible for insuring the condominium interior.
The property is located in Lewes, Delaware, within walking distance of restaurants and grocery shopping. Community amenities include two pools, a fitness center, walking trails, and a lake suitable for kayaking. The HOA covers water, exterior maintenance, grounds landscaping, pool and fitness amenities, and the master insurance policy, leaving owners responsible for insuring the condominium interior.
Key Highlights
- 3BR, 2BA condominium with 1,756 SF of living area
- Built in 2023 with 9 ft ceilings and an open kitchen, dining, and living layout
- Private elevator connects the foyer with the 1‑car garage
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
$17,249
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
3.93%
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%
$344,980
$345.0K
Cap Rate 7%
$246,414
$246.4K
Cap Rate 9%
$191,656
$191.7K
Market Conditions
NOI Build-Up for 1,756 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 $18.96/SF
− Vacancy
−$1.9K −$1.10/SF
EGI
$31.4K $17.86/SF
− OpEx
−$14.1K −$8.04/SF
NOI
$17.2K $9.82/SF
Area
Sussex County, DE
Vacancy
5.80%
Lease Rate
$18.96 /SF/Yr
Expense Ratio
45.00%
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%
$344,980
Cap Rate 7%
$246,414
Cap Rate 9%
$191,656
Alternative Uses
Best Use
Apartment 5plus
$246.4K
$215.6K – $287.5K
NOI $17,249 @ 7.0% cap · market cap 3.93%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$482.5K
$422.2K – $563.0K
NOI $33,778 @ 7.0% cap · market cap 7.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
40
Businesses Nearby
Explore this area
Business Placement
Demographics for 19958, DE
27,911
Population
19,410
Households
1.4
Avg Household Size
61
Median Age
49%
College-Educated
95%
High-School Grad
47.3 sq mi
ZIP Area
590
Density / Sq Mi
$91,445
Median Household Income
$49,124
Median Earnings
$1,654
Median Rent
$488,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Updated condominium residence with flexible living space, screened porch, private elevator, and access to community pools and fitness facilities.
Where is this residential income property located?
The property is located at 24565 MERLOT DRIVE Lewes, DE.
What is the asking price?
The asking price for this property is $439,000.
What are key features of this property?
This property features: 3BR, 2BA condominium with 1,756 SF of living area; Built in 2023 with 9 ft ceilings and an open kitchen, dining, and living layout; Private elevator connects the foyer with the 1‑car garage
