Property Description:

FLEXIBLE 1031 EXCHANGE
Summary of Property:This is an opportunity for qualified restaurant groups, franchises, investors, developers, and owner/operators. This property is located in a prime Mid-Town location on Coastal Highway in the heart of Ocean City, Maryland.  It's in a high traffic area as well as highly visible property located midtown with surrounding legendary properties like Seacrets, Mackey's Bar, Fager's Island, Denny's, Touch of Italy, Tequila Frogs, Bad Monkey and Dead Freddies.  Other attractions include Roland E. Powell Convention Center, which offers countless events to locals and visitors. There are numerous surrounding hotels and residential units with the beach and bay only a block away offering a direct public access walkway to the beach. It's a unique property with many options available for use with it's rare preexisting mixed use zoning.  There are three attached/contiguous commercial condominiums which can be used as an Air BNB/Residential/Staff units as part of the property. Currently the three commercial spaces are utilized as a Class “A” operating restaurant space. It's a 7-day Beer/Wine/Liquor Licensed property by the Worcester County Board or License Commissioners (New owner would need to have the license transferred to them).  Please note the current use can be converted to many other uses and are open ended due to the zoning.  The space consists of approximately 12,420+/- SF, approx. 7,200 SF operating restaurant/bar with indoor and outdoor dining and approx. 4,000 SF for an Air BNB/residential/Staff. The space consists of three contiguous tax deeds, giving the owner the option to lease the three spaces as separate operating spaces.   

 The property could be used in the following scenarios to be considered for the new owner.
1) In-Place, all-encompassing lease is currently existing which includes the tenants’ rights to all of the restaurant space, outdoor dining area, and the apartments. The current Lessee is amenable to an early termination, if someone is willing to take over his obligation under new terms, with everything dependent on finalization with current tenant and landlord.
2) There is a prominent restaurateur who is interested buying out the current lease of existing tenant/restaurant space. At that time, a new lease would be negotiated, and the apartments would be negotiable as to whether that new operator also takes control of the apartments or only the
restaurant space or both.
3) Or a full sale of the three “commercial” condominiums (unconstrained by any leases) including the furnished apartments to a buyer to use the space in a commercial or residential capacity. An important financial detail to note, is that the new owner of the three units will enjoy significant, almost unheard of, savings in many of their expense categories. A new owner will benefit greatly from the disproportionate, bargain value they will enjoy/capitalize on by comparing what is included in their annual condominium fees VS what those same goods and services would cost an owner if paid A-La cart. Not only is there significant annual savings in basic operating expenses but the benefits really start accruing when you consider the following. Per your interest, a chart comparing a commercial condominium and a free stand commercial building benefits/expenses can be provided. There are no other commercial condo building with such a low condo fee of 10%, that I am aware of in Ocean City, Maryland.

 Property Details: PARKING APPROXIMATELY 40 +/- SPACES/TRAFFIC COUNT/VOLUME COASTAL HIGHWAY (47,228)/SIGNAGE BOARD HAS APPROVED A DOUBLE-SIDED, MODERN LED SIGN REPLACEMENT. (WOULD BE ONE OF THE LARGEST DOUBLE-SIDED LED SIGNS IN OCEAN CITY)/VISIBILITY 100’ FRONTAGE ALONG HEAVY-TRAVELED COASTAL HIGHWAY/ACCESS 2 SEPARATE ENTRANCES/EXITS; SIGNALED INTERSECTION/AMENITIES OUTDOOR SEATING OPTION (40 +/- SEATS) ON BALCONY/PATIO

Financial Highlights Purchase Price: $6,000,000 ($483.09/SF) Potential In-Place Net Operating Income: $309,647 Rentable Square Feet: 11,220 SF + 1,200 +/- SF Deck Area Potential Cap Rate at 100% Occupancy: 5.161% 

 Ownership Highlights *Unlimited possible uses due to unique zoning of the buildings

 *Rarely Available Offering

*Prime, High Visibility location with high Vehicles Per Day Count

*Lowest possible cost of occupancy due to expense savings through Condominium Association

*Strong Demographics

*Free Surface parking

*Use of Pool

*Low Maintenance exterior

*State of the Art Kitchen, Grease Trap and Hood system

*Prime restaurant ownership opportunity with employee housing if desired

*Walk-in refrigerator/walk-in freezer

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