Ocean City Motel For
For Sale
$6,975,000
7100 COASTAL HIGHWAY, Ocean City, MD 21842
54-unit motel with pool and recent renovations in Ocean City.
Property Size23,448 SF
Price / SF$297.47
Days on Market169
Property Features for 7100 COASTAL HIGHWAY
General Information
Standard status
Active
Size
23,448 SF
Property subtype
Multi-Family
Taxes and HOA fees
Annual Taxes
$53,814
Amenities
Wall Air Conditioning
3
Ceramic Tile, Concrete, Carpet
Built Up
Parking. Corner Lot.
Lot.
Ocean
0.00 x 0.00
Landscaped. Corner, Asphalt, Paved Road, Clear lot.
Building Details
Year Built
1973
Listing Agency:
Coldwell Banker Bud Church Realty,Inc.
(410) 524-7888
Listed By:
Ken Church · License #305250
(410) 524-7888
Source:
Xome
Added: Mar 8
Changed: Aug 23
Last Checked: Aug 24 at 3:24AM
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 Coldwell Banker Bud Church Realty,Inc.
Investment Insights
Based on property information with market context.
This is a remarkable opportunity to own a piece of Ocean City history. The property features a 54-unit motel, with all units being efficiency layouts. Located on the Ocean Side at 71st Street, the motel offers large rooms and an ample-sized pool. There is excess parking available for guests. Recent renovations have been completed over the last several years, including new heat and air conditioning systems. A brand new laundry facility has also been installed. The location is described as one that rarely becomes available. The motel is currently operational, with rooms booked for the summer season. The bike score is 49, indicating it is somewhat bikeable, and the walk score is 47, suggesting it is car-dependent.
Key Highlights
- 54‑unit motel on the Ocean Side at 71st Street
- Large rooms (efficiencies)
- Ample size pool
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
$215,236
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
3.09%
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%
$4,304,720
$4.3M
Cap Rate 7%
$3,074,800
$3.1M
Cap Rate 9%
$2,391,511
$2.4M
Market Conditions
NOI Build-Up for 23,448 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
$514.9K $21.96/SF
− Vacancy
−$61.8K −$2.64/SF
EGI
$453.1K $19.32/SF
− OpEx
−$237.9K −$10.15/SF
NOI
$215.2K $9.18/SF
Area
Worcester County, MD
Vacancy
12.00%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
52.50%
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%
$4,304,720
Cap Rate 7%
$3,074,800
Cap Rate 9%
$2,391,511
Alternative Uses
Best Use
Hotel Hospitality
$3.07M
$2.69M – $3.59M
NOI $215,236 @ 7.0% cap · market cap 3.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.63M
$4.93M – $6.57M
NOI $394,433 @ 7.0% cap · market cap 5.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
503
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 21842, MD
11,104
Population
32,684
Households
0.3
Avg Household Size
53
Median Age
39%
College-Educated
95%
High-School Grad
9.2 sq mi
ZIP Area
1,207
Density / Sq Mi
$75,372
Median Household Income
$40,189
Median Earnings
$1,258
Median Rent
$415,900
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Ocean City Maryland Hotel Week — 5700 Coastal Hwy #302, Ocean City, MD 21842
- The Blue Turtle — 15 57th St, Ocean City, MD 21842
- Seeley's OC Sandcastle — 5801 Atlantic Ave, Ocean City, MD 21842
- Lighthouse Club Hotel — 201 56th St, Ocean City, MD 21842
- The Edge — 200A 56th St, Ocean City, MD 21842
Frequently Asked Questions
What type of property is this?
Motel - 54-unit motel with pool and recent renovations in Ocean City.
Where is this motel located?
The property is located at 7100 COASTAL HIGHWAY Ocean City, MD.
What is the asking price?
The asking price for this property is $6,975,000.
What are key features of this property?
This property features: 54‑unit motel on the Ocean Side at 71st Street; Large rooms (efficiencies); Ample size pool
