Versatile Commercial Property with Remodeled
For Sale
$650,000
885 DOVER LEIPSIC ROAD, Dover, DE 19901
Commercial property featuring a remodeled home and spacious attached garage.
Property Size1,436 SF
Lot Size0.25 Acres
Price / SF$452.65
Days on Market160
Property Features for 885 DOVER LEIPSIC ROAD
General Information
Standard status
Active
Size
1,436 SF
Lot size
0.25 Acres
Property subtype
Mixed Use
Taxes and HOA fees
Annual Taxes
$1,388
Amenities
Central Air
3
Driveway.
Building Details
Year Built
1961
Listing Agency:
Swalm Realty LLC
(302) 561-2288
Listed By:
Christian Swalm
(302) 561-2288
Source:
Xome
Added: Mar 17
Changed: Aug 23
Last Checked: Aug 22 at 10:10AM
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 Swalm Realty LLC
Investment Insights
Based on property information with market context.
This commercial property in Dover presents an opportunity for investors, entrepreneurs, or owner-operators. Zoned recreational/commercial, the property includes a fully remodeled 2-bedroom, 2-bath home and a spacious 25x35 attached garage suitable for a workshop, business use, or live/work setup. The home features upgrades throughout, including new subflooring, vinyl siding, replaced insulation and drywall in exterior walls, and a new 200-amp electrical panel. Interior finishes include 3/4” hardwood flooring in the living and dining areas, DuraCeramic tile in the kitchen, baths, and laundry, Wolf cabinetry, granite countertops, and crown molding. Comfort and efficiency are enhanced with five Hunter ceiling fans, all-new LED lighting, and a Rheem Prestige tankless water heater. The attached garage is fully insulated with insulated doors, epoxy floors, and its own ductless heating and cooling system. It also features a 50-amp subpanel, LiftMaster side-mount opener, a large ceiling fan, and upgraded LED lighting. A 9-camera security system with a monitor and 3TB NVR provides 360-degree exterior coverage. The owner has maintained an adjacent ¼ acre piece of land for the past 20 years.
Key Highlights
- Zoned recreational/commercial, offering versatile possibilities.
- Fully remodeled 2‑bedroom, 2‑bath home with extensive upgrades.**
- Spacious 25x35 attached garage, fully insulated with insulated doors, epoxy floors, ductless heating/cooling, and a 50‑amp subpanel.**
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
$19,506
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
3.00%
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%
$390,120
$390.1K
Cap Rate 7%
$278,657
$278.7K
Cap Rate 9%
$216,733
$216.7K
Market Conditions
NOI Build-Up for 1,436 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
$33.4K $23.28/SF
− Vacancy
−$7.4K −$5.17/SF
EGI
$26.0K $18.11/SF
− OpEx
−$6.5K −$4.53/SF
NOI
$19.5K $13.58/SF
Area
Kent County, DE
Vacancy
22.20%
Lease Rate
$23.28 /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%
$390,120
Cap Rate 7%
$278,657
Cap Rate 9%
$216,733
Alternative Uses
Best Use
Office B
$278.7K
$243.8K – $325.1K
NOI $19,506 @ 7.0% cap · market cap 3.00%
Second Best
Mixed Use
$264.7K
$231.6K – $308.8K
NOI $18,527 @ 7.0% cap · market cap 2.85%
Theoretical Best
Office A
$361.6K
$316.4K – $421.9K
NOI $25,311 @ 7.0% cap · market cap 3.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
359
Businesses Nearby
Explore this area
Business Placement
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Commercial property featuring a remodeled home and spacious attached garage.
Where is this mixed-use property located?
The property is located at 885 DOVER LEIPSIC ROAD Dover, DE.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Zoned recreational/commercial, offering versatile possibilities.; Fully remodeled 2‑bedroom, 2‑bath home with extensive upgrades.**; Spacious 25x35 attached garage, fully insulated with insulated doors, epoxy floors, ductless heating/cooling, and a 50‑amp subpanel.**
