Milton Medical Park Investment
For Sale
$3,975,000
611 Federal Street, Milton, DE 19968
Fully leased medical office park with expansion potential in Milton, DE.
Property Size12,860 SF
Price / SF$309.10
Days on Market192
Property Features for 611 Federal Street
General Information
Standard status
Active
Size
12,860 SF
Property subtype
Office
Building Details
Year Built
2009
Listing Agency:
SVN/Miller Commercial Real Estate
(410) 251-6408
Listed By:
Wesley Cox, CCIM · License #574198
(410) 251-6408
Source:
Svnmiller
Added: Jan 27
Changed: Jul 6
Last Checked: Aug 6 at 5:15AM
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 SVN/Miller Commercial Real Estate
Investment Insights
Based on property information with market context.
Milton Medical Park is a fully leased medical office campus located in Milton, DE. The park consists of two existing buildings totaling 12,860 square feet and offers multi-tenant diversification. Building #1 comprises 6,250 square feet, and Building #2 is 6,610 square feet; both are fully leased to long-standing medical office tenants. The property provides approximately 80 on-site parking spaces, multiple monument signs, and accessibility. The park includes a pad site for a future approximately 3,264 square foot office building, providing an opportunity for expansion in a growing market. Sussex County is one of the fastest-growing markets on the East Coast, and with zoning and development constraints allowing for limited commercial construction to service that growth, there is long-term value in place. Strategically located near downtown Milton and Route 1, and with over 2,000 new residential homes under construction or in planning, Milton Medical Park combines visibility, accessibility, and long-term growth potential. Located at 611 Federal Street, this investment property sits in the heart of Milton, Delaware’s walkable downtown district. Federal Street is a core downtown corridor, placing the property within immediate proximity to Main Street businesses, local restaurants, breweries, boutique retailers, municipal offices, and community gathering spots. The location benefits from local traffic, an established residential base with over 2,000 new residential lots in planning, and year-round demand. Its position within downtown Milton creates a live-work-play environment that supports long-term occupancy stability. The location is also positioned minutes from Route 1, providing access to Lewes, Rehoboth Beach, and the greater coastal Delaware region, while retaining Milton’s historic charm. Continued public and private investment throughout downtown Milton enhances the long-term upside of this location.
Key Highlights
- Fully leased medical office park with long‑standing tenants, providing immediate income.
- Located in Sussex County, one of the fastest‑growing markets on the East Coast, ensuring long‑term value.
- Includes a pad site for a future +/-3,264 SF office building, offering expansion potential.
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
$201,862
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
5.08%
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%
$4,037,240
$4.0M
Cap Rate 7%
$2,883,743
$2.9M
Cap Rate 9%
$2,242,911
$2.2M
Market Conditions
NOI Build-Up for 12,860 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
$330.2K $25.68/SF
− Vacancy
−$61.1K −$4.75/SF
EGI
$269.1K $20.93/SF
− OpEx
−$67.3K −$5.23/SF
NOI
$201.9K $15.70/SF
Area
Sussex County, DE
Vacancy
18.50%
Lease Rate
$25.68 /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%
$4,037,240
Cap Rate 7%
$2,883,743
Cap Rate 9%
$2,242,911
Alternative Uses
Best Use
Office B
$2.88M
$2.52M – $3.36M
NOI $201,862 @ 7.0% cap · market cap 5.08%
Second Best
Healthcare Medical
$2.59M
$2.27M – $3.02M
NOI $181,480 @ 7.0% cap · market cap 4.57%
Theoretical Best
Office A
$3.53M
$3.09M – $4.12M
NOI $247,375 @ 7.0% cap · market cap 6.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
256
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19968, DE
13,800
Population
7,380
Households
1.9
Avg Household Size
53
Median Age
40%
College-Educated
94%
High-School Grad
63.9 sq mi
ZIP Area
216
Density / Sq Mi
$81,646
Median Household Income
$43,088
Median Earnings
$1,408
Median Rent
$418,600
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Fully leased medical office park with expansion potential in Milton, DE.
Where is this medical office space located?
The property is located at 611 Federal Street Milton, DE.
What is the asking price?
The asking price for this property is $3,975,000.
What are key features of this property?
This property features: Fully leased medical office park with long‑standing tenants, providing immediate income.; Located in Sussex County, one of the fastest‑growing markets on the East Coast, ensuring long‑term value.; Includes a pad site for a future +/-3,264 SF office building, offering expansion potential.
