Third-Floor Residential Income
For Sale
$335,000
400 CASCADE LANE #420, Rehoboth Beach, DE 19971
Two-bedroom residence with dual-suite functionality, screened porch, updated appliances, and access to a community pool.
Property Size1,060 SF
Days on Market81
Property Features for 400 CASCADE LANE #420
General Information
Standard status
Active
Size
1,060 SF
Property subtype
Apartment
Building Details
Building Size
1,060 SF
Year Built
2002
Listing Agency:
SEA BOVA ASSOCIATES INC.
Listed By:
LINDA BOVA · License #RB-0003161
(302) 227-1222
Source:
Stevedeboe.kw
Added: Jun 26
Changed: Sep 9
Last Checked: Sep 14 at 5:32AM
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 SEA BOVA ASSOCIATES INC.
Investment Insights
Based on property information with market context.
This 1,060-square-foot third-floor end unit offers a two-bedroom layout with 9-foot ceilings and just one shared wall. The interior includes a living room opening to a screened porch, an adjoining dining area, and a galley kitchen with pantry and utility storage. The kitchen is equipped with an electric range, built-in microwave, dishwasher, disposal, and new refrigerator. Both bedrooms have walk-in closets; the primary bedroom includes an en suite bath, while the hall bath also provides direct access to the second bedroom. A stack washer and dryer, coat storage, porch storage closet, ceiling fans, newer water heater, and newer HVAC complete the unit.
The property is located 4 miles from the Rehoboth boardwalk and 5.5 miles from Lewes public beach. A community pool is nearby, and the State Park’s Wolfe Neck/Breakwater Junction trailhead provides access to a hiking and biking trail. A DART bus stop is also close to the property. Built in 2002, the residence is positioned for use as an investment property, beach getaway, or year-round home.
The property is located 4 miles from the Rehoboth boardwalk and 5.5 miles from Lewes public beach. A community pool is nearby, and the State Park’s Wolfe Neck/Breakwater Junction trailhead provides access to a hiking and biking trail. A DART bus stop is also close to the property. Built in 2002, the residence is positioned for use as an investment property, beach getaway, or year-round home.
Key Highlights
- 1,060‑square‑foot Chesapeake‑model floor plan with 9‑foot ceilings
- Third‑floor end unit with only one common wall and no residence above
- Two‑bedroom layout with two full baths and hall‑bath access to the second bedroom
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
$10,413
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%
$208,260
$208.3K
Cap Rate 7%
$148,757
$148.8K
Cap Rate 9%
$115,700
$115.7K
Market Conditions
NOI Build-Up for 1,060 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
$20.1K $18.96/SF
− Vacancy
−$1.2K −$1.10/SF
EGI
$18.9K $17.86/SF
− OpEx
−$8.5K −$8.04/SF
NOI
$10.4K $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%
$208,260
Cap Rate 7%
$148,757
Cap Rate 9%
$115,700
Alternative Uses
Best Use
Apartment 5plus
$148.8K
$130.2K – $173.6K
NOI $10,413 @ 7.0% cap · market cap 3.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$291.3K
$254.9K – $339.8K
NOI $20,390 @ 7.0% cap · market cap 6.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
876
Businesses Nearby
Explore this area
Business Placement
Demographics for 19971, DE
14,348
Population
16,948
Households
0.8
Avg Household Size
60
Median Age
55%
College-Educated
96%
High-School Grad
18.0 sq mi
ZIP Area
797
Density / Sq Mi
$103,301
Median Household Income
$49,905
Median Earnings
$1,383
Median Rent
$561,300
Median Home Value
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Frequently Asked Questions
What type of property is this?
Residential income property - Two-bedroom residence with dual-suite functionality, screened porch, updated appliances, and access to a community pool.
Where is this residential income property located?
The property is located at 400 CASCADE LANE #420 Rehoboth Beach, DE.
What is the asking price?
The asking price for this property is $335,000.
What are key features of this property?
This property features: 1,060‑square‑foot Chesapeake‑model floor plan with 9‑foot ceilings; Third‑floor end unit with only one common wall and no residence above; Two‑bedroom layout with two full baths and hall‑bath access to the second bedroom
