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    Boutique Inn and Event Venue Title is generated by Realmo AI

    34 6TH Street, Rehoboth Beach, DE 19971

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    For Sale
    $2,950,000

    For sale boutique hotel with 13 rooms, indoor event space, and extensive outdoor areas with canal views.

    Type:Commercial
    Added:
    Feb 22, 2024
    Days on Market:
    834
    Last Refresh:
    Jun 5 at 2:17 am

    Property Features for 34 6TH Street

    General Information

    Standard status
    Active
    Property subtype
    Commercial

    Building Details

    Year Built
    1960

    We can help!

    Listing Contact
    BLAIR CHERICO

    Listing agent BLAIR CHERICO

    Listing office Monument Sotheby's International Realty

    Listing date Feb 22, 2024

    Source Deepcreeklake

    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 Monument Sotheby's International Realty

    HighLights

    • Canalside Inn is a 1960‑built boutique hotel with 13 uniquely styled rooms and suites
    • Revitalized from 2022–2024, offering updated modern comfort while keeping historic character
    • Over 3,200 sq ft of outdoor areas with canal views, plus a swimming pool and hot tub
    • 650 sq ft indoor event center and versatile event spaces for gatherings and retreats
    • Located steps from the Rehoboth‑Lewes Canal, with a short walk or bike ride to the beach and boardwalk
    • Includes guest lounge with kitchen and dining area, plus bicycles, beach chairs, umbrellas, and fire pits

    Overview

    Canalside Inn is a boutique hotel originally established in 1960 and revitalized from 2022 to 2024. The property offers 13 uniquely styled rooms and suites, designed with beach-inspired decor. Guest amenities include a swimming pool and hot tub, along with bicycles, beach chairs, and umbrellas. A cozy guest lounge features a kitchen and dining area, and the inn is supported by versatile indoor and outdoor event spaces.

    Located in downtown Rehoboth Beach, the inn is just steps from the Rehoboth-Lewes Canal and within a short walk or bike ride to the beach and boardwalk. Outdoor event areas total over 3,200 square feet and are complemented by canal views. Event space also includes a 650 square foot indoor center, along with outdoor social areas featuring games and fire pits.

    This property is well suited for an operator looking for a hospitality asset built around guest accommodations and event hosting, supported by both indoor meeting space and substantial outdoor gathering areas. With on-site features intended to support stays and group functions, including an event bus for added convenience, Canalside Inn offers a turnkey hospitality setting for buyers interested in operating a boutique inn in downtown Rehoboth Beach. For sale; schedule a private tour to review the details and experience the property firsthand.
    Location Intelligence

    Current Use by Public Records

    Hotels

    Suggested Use

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

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

    Location Insight

    • Map
    • Local Demand
    City
    Rehoboth Beach
    County
    Sussex
    State
    Delaware
    Longitude
    -75.0922014
    Latitude
    38.7127389

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    FAQs

    What type of property is this?
    Hotel - For sale boutique hotel with 13 rooms, indoor event space, and extensive outdoor areas with canal views.
    Where is this hotel located?
    The property is located at 34 6TH Street Rehoboth Beach, DE.
    What is the asking price?
    The asking price for this property is $2,950,000.
    What are key features of this property?
    This property features: Canalside Inn is a 1960‑built boutique hotel with 13 uniquely styled rooms and suites; Revitalized from 2022–2024, offering updated modern comfort while keeping historic character; Over 3,200 sq ft of outdoor areas with canal views, plus a swimming pool and hot tub
    We can help!
    Listing Contact
    BLAIR CHERICO
    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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