Historic Corner Restaurant
For Sale
$299,999
408 S State Street, Dover, DE 19901
Corner-lot brick building dating to 1750, suited for a coffee shop or specialty eatery in downtown Dover.
Property Size1,113 SF
Price / SF$269.54
Days on Market143
Property Features for 408 S State Street
General Information
Standard status
Active
Size
1,113 SF
Property subtype
Retail
Building Details
Year Built
1750
Listing Agency:
The Watson Realty Group, LLC
(302) 542-8422
Listed By:
Donna Watson · License #R1-0002887
(302) 542-8422
Source:
Xome
Added: Mar 17
Changed: Jul 10
Last Checked: Aug 6 at 3:29AM
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 The Watson Realty Group, LLC
Investment Insights
Based on property information with market context.
This historic brick building, built in 1750, offers a classic setting for a coffee shop, small deli, or specialty eatery. The property sits on a corner lot and features classic brick sidewalks, giving it a distinctive downtown feel that aligns well with neighborhood dining concepts.
Located in historic downtown Dover, the building is positioned just steps from The Green. It is surrounded by attorney offices and professional services, creating an active streetscape of daily professional activity, with seasonal downtown events adding additional in-town draw.
For an owner-operator or operator looking for a small-format food and beverage use, the layout and downtown orientation support a straightforward retail approach for serving locals and visitors. This is also a practical fit for buyers seeking a character-driven restaurant building in a walkable, established business district setting.
Located in historic downtown Dover, the building is positioned just steps from The Green. It is surrounded by attorney offices and professional services, creating an active streetscape of daily professional activity, with seasonal downtown events adding additional in-town draw.
For an owner-operator or operator looking for a small-format food and beverage use, the layout and downtown orientation support a straightforward retail approach for serving locals and visitors. This is also a practical fit for buyers seeking a character-driven restaurant building in a walkable, established business district setting.
Key Highlights
- Corner‑lot brick building dating to 1750 in historic downtown Dover
- Suitable for a coffee shop, small deli, or specialty eatery
- Window A/C and wood flooring; heating systems indicated as “3”
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
$14,199
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
4.73%
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%
$283,980
$284.0K
Cap Rate 7%
$202,843
$202.8K
Cap Rate 9%
$157,767
$157.8K
Market Conditions
NOI Build-Up for 1,113 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
$20.0K $18.00/SF
− Vacancy
−$1.1K −$0.99/SF
EGI
$18.9K $17.01/SF
− OpEx
−$4.7K −$4.25/SF
NOI
$14.2K $12.76/SF
Area
Kent County, DE
Vacancy
5.50%
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%
$283,980
Cap Rate 7%
$202,843
Cap Rate 9%
$157,767
Alternative Uses
Best Use
Specialty Retail
$202.8K
$177.5K – $236.7K
NOI $14,199 @ 7.0% cap · market cap 4.73%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$280.3K
$245.2K – $327.0K
NOI $19,618 @ 7.0% cap · market cap 6.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
906
Businesses Nearby
9k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 42%
Groceries 40%
Dining 18%
Liquor Mart
Groceries
3,502 visits/mo
0.4 miles
Food Mart
Shops & Services
3,156 visits/mo
0.5 miles
Pizza Time
Dining
1,573 visits/mo
0.4 miles
Meineke Car Care Center
Shops & Services
584 visits/mo
0.3 miles
Demographics for 19901, DE
36,839
Population
15,443
Households
2.4
Avg Household Size
34
Median Age
27%
College-Educated
89%
High-School Grad
75.8 sq mi
ZIP Area
486
Density / Sq Mi
$63,891
Median Household Income
$33,069
Median Earnings
$1,353
Median Rent
$258,400
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.
Similar Off Market Nearby
- Cobblestone Cafe — 408 S State St, Dover, DE 19901
- The Brunch n Lunch — 212 S Governors Ave, Dover, DE 19904
- Brownstone Cafe — 200 Banning St # 120, Dover, DE 19904
- McCafe — 915 S Dupont Hwy, Dover, DE 19901
- Key to Life Juice Bar — 136 W Loockerman St, Dover, DE 19901
Frequently Asked Questions
What type of property is this?
Coffee shop - Corner-lot brick building dating to 1750, suited for a coffee shop or specialty eatery in downtown Dover.
Where is this coffee shop located?
The property is located at 408 S State Street Dover, DE.
What is the asking price?
The asking price for this property is $299,999.
What are key features of this property?
This property features: Corner‑lot brick building dating to 1750 in historic downtown Dover; Suitable for a coffee shop, small deli, or specialty eatery; Window A/C and wood flooring; heating systems indicated as “3”
