Occupied Restaurant with Development
For Sale
$855,900
36125 Zion Church Road, Frankford, DE 19945
Existing restaurant with surrounding land, C-1 zoning, and room for an additional structure.
Property Size2,200 SF
Price / SF$389.05
Days on Market171
Property Features for 36125 Zion Church Road
General Information
Standard status
Active
Size
2,200 SF
Property subtype
Retail
Zoning
C1
Land
Land Use
commercial
Entitled
Yes
Taxes and HOA fees
Annual Taxes
$516
Amenities
Central Air
3
C-1
Parking.
Lot.
Building Details
Year Built
1980
Listing Agency:
Keller Williams Realty
(302) 841-7670
Listed By:
Tammy Dunn · License #RS-0037553
(302) 841-7670
Source:
Xome
Added: Mar 14
Changed: Aug 30
Last Checked: Aug 31 at 2:13PM
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 Keller Williams Realty
Investment Insights
Based on property information with market context.
This offering combines an occupied restaurant with surrounding land in Sussex County, Delaware. The property includes central air, parking, and a building constructed in 1980. Additional land area provides room for another structure, subject to applicable approvals.
The property is located at 36125 Zion Church Road in Frankford, with road visibility and high traffic counts noted for the site. C-1 commercial zoning is identified, allowing twelve units per acre by right and a broad range of commercial uses. The existing restaurant and available land create a combined property configuration for continued restaurant operations and potential additional development.
The property is located at 36125 Zion Church Road in Frankford, with road visibility and high traffic counts noted for the site. C-1 commercial zoning is identified, allowing twelve units per acre by right and a broad range of commercial uses. The existing restaurant and available land create a combined property configuration for continued restaurant operations and potential additional development.
Key Highlights
- Occupied restaurant with surrounding land for sale
- C‑1 commercial zoning allows twelve units per acre by right
- Room for an additional structure, subject to applicable approvals
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
$26,641
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
3.11%
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%
$532,820
$532.8K
Cap Rate 7%
$380,586
$380.6K
Cap Rate 9%
$296,011
$296.0K
Market Conditions
NOI Build-Up for 2,200 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
$39.6K $18.00/SF
− Vacancy
−$4.1K −$1.85/SF
EGI
$35.5K $16.15/SF
− OpEx
−$8.9K −$4.04/SF
NOI
$26.6K $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%
$532,820
Cap Rate 7%
$380,586
Cap Rate 9%
$296,011
Alternative Uses
Best Use
Specialty Retail
$380.6K
$333.0K – $444.0K
NOI $26,641 @ 7.0% cap · market cap 3.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$604.6K
$529.0K – $705.3K
NOI $42,319 @ 7.0% cap · market cap 4.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
26
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19945, DE
8,041
Population
5,823
Households
1.4
Avg Household Size
51
Median Age
32%
College-Educated
92%
High-School Grad
62.3 sq mi
ZIP Area
129
Density / Sq Mi
$86,021
Median Household Income
$37,062
Median Earnings
$1,229
Median Rent
$410,000
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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Existing restaurant with surrounding land, C-1 zoning, and room for an additional structure.
Where is this conventional restaurant located?
The property is located at 36125 Zion Church Road Frankford, DE.
What is the asking price?
The asking price for this property is $855,900.
What are key features of this property?
This property features: Occupied restaurant with surrounding land for sale; C‑1 commercial zoning allows twelve units per acre by right; Room for an additional structure, subject to applicable approvals
