Built-Out Conventional
For Sale
Contact for pricing
47 Rehoboth Avenue Unit B, Rehoboth Beach, DE 19971
Rita’s franchise has operated at this food-service location since 2017.
Property Size2,000 SF
Price / SF$139.50
Days on Market9
Property Features for 47 Rehoboth Avenue Unit B
General Information
Standard status
Active
Size
2,000 SF
Property subtype
Retail
Building Details
Tenancy
Single
Listing Agency:
DSM Commercial
(302) 227-0768
Listed By:
Brittany Danahy · License #DE#0020210
Source:
Crexi
Added: Aug 13
Changed: Aug 18
Last Checked: Aug 21 at 7:01AM
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 DSM Commercial
Investment Insights
Based on property information with market context.
This conventional restaurant property is configured for food-service use and is being offered with a fully built-out, second-generation operation. The Rita’s franchise has occupied the location since 2017, providing an established operating history at the site.
The property is located at 47 Rehoboth Avenue, Unit B, along the first block of Rehoboth Avenue in downtown Rehoboth Beach. It sits next to Louie’s Pizza and within the downtown setting of Rehoboth Beach, Delaware.
The property is located at 47 Rehoboth Avenue, Unit B, along the first block of Rehoboth Avenue in downtown Rehoboth Beach. It sits next to Louie’s Pizza and within the downtown setting of Rehoboth Beach, Delaware.
Key Highlights
- Fully built‑out, second‑generation food‑service operation
- Rita’s franchise has operated at the location since 2017
- Located at 47 Rehoboth Avenue, Unit B
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
$24,219
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
8.68%
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%
$484,380
$484.4K
Cap Rate 7%
$345,986
$346.0K
Cap Rate 9%
$269,100
$269.1K
Market Conditions
NOI Build-Up for 2,000 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
$36.0K $18.00/SF
− Vacancy
−$3.7K −$1.85/SF
EGI
$32.3K $16.15/SF
− OpEx
−$8.1K −$4.04/SF
NOI
$24.2K $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%
$484,380
Cap Rate 7%
$345,986
Cap Rate 9%
$269,100
Alternative Uses
Best Use
Specialty Retail
$346.0K
$302.7K – $403.7K
NOI $24,219 @ 7.0% cap · market cap 8.68%
Second Best
Retail
$256.1K
$224.1K – $298.8K
NOI $17,929 @ 7.0% cap · market cap 6.43%
Theoretical Best
Office A
$549.6K
$480.9K – $641.2K
NOI $38,472 @ 7.0% cap · market cap 13.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
658
Businesses Nearby
15k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 88%
Electronics 7%
Shops & Services 5%
Big Fish Grill
Dining
13,426 visits/mo
0.3 miles
Verizon
Electronics
1,090 visits/mo
0.3 miles
Fulton Bank
Shops & Services
799 visits/mo
0.3 miles
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
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 - Rita’s franchise has operated at this food-service location since 2017.
Where is this conventional restaurant located?
The property is located at 47 Rehoboth Avenue Unit B Rehoboth Beach, DE.
What is the asking price?
The asking price for this property is $279,000.
What are key features of this property?
This property features: Fully built‑out, second‑generation food‑service operation; Rita’s franchise has operated at the location since 2017; Located at 47 Rehoboth Avenue, Unit B
