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RETAIL STRIP CENTER
1.5± Acres ✦ 60+ Car Parking ✦ Opportunity Zone
Known As:
“Sunburst Center”
309 SUNBURST HIGHWAY (US-50)
Cambridge, Dorchester County, MD 21613
ONLINE BIDDING OPENS:
TUESDAY, JUNE 8, 2021
LIVE ONSITE AUCTION:
FRIDAY, JUNE 11, 2021 AT 12:00 NOON
– Starting Bid: $450,000 –
NOTE: The information contained herein has been obtained from sources deemed reliable and is believed to be accurate. However, no express or implied warranty is made or may be inferred from any such representation. Dimensions, square footage and acreage contained herein are more or less. Prospective purchasers are encouraged to perform their own due diligence, in advance of the auction, regarding the permitted uses of the property.
LOCATION:
The Sunburst Center is located on US-50 in Cambridge, Maryland. Known as Sunburst Highway through Cambridge, and Ocean Gateway before and after Cambridge, US-50 is the primary artery through Maryland’s Eastern Shore from the Bay Bridge to Ocean City. According to State Highway Administration statistics, approximately 29,172 cars per day pass by the site on average. Traffic during “Beach Season” is estimated to be substantially higher.
The City of Cambridge is the Dorchester County seat, and a community with a nearly 300 year history. The Sunburst Center is well positioned along the primary commercial corridor in Cambridge. University of Maryland Shore Medical Center, a major area employer and also current tenant in the Center, has their primary campus a short distance north. The Hyatt Regency Chesapeake Bay Gold Resort, Spa and Marina, another major area employer, is a short distance to the south. Other major area employers include Amick Farms, Cambridge International and Delmarva Community Services.
The property is located within an Opportunity Zone, providing an array of investment benefits and opportunities for preferential tax treatment. For more information about Opportunity Zones, please visit Opportunity Zones – hud.gov and Maryland Opportunity Zones – dhcd.maryland.gov
SITE:
Lot size – 1.503 acres, more or less, according to public tax records. See survey below for dimensions, and survey and legal description below for 10′ and 12′ right-of-way access information.
The property fronts approximately 275′ along US-50 with three curb cuts on the highway.
60+ car asphalt paved parking lot at the front of the Center, and tenant and delivery parking and access along the rear.
Two pole signs.
All public utilities.
ZONING:
GC (City of Cambridge) – General Commercial
According to the Cambridge Zoning Code, “The General Commercial district (GC) is applied to areas of the City to accommodate a variety of commercial uses including in areas that may benefit from orientation to the highway and access to regional transportation.”
For more information about Cambridge Zoning, please visit:
Planning & Zoning – www.choosecambridge.com
City of Cambridge Zoning Map – choosecambridge.maps.arcgis.com
IMPROVEMENTS:
Single story retail strip building – constructed in 1988 and containing 18,130 square feet of gross building area, according to public tax records, and 18,475 of gross building area according to ownership records. The single story sided Center features separate front and rear entrances for each tenant space, individual tenant signage (front and pole), covered portico, and built-up roof with shingle roof fascia (replaced 2020).
The Center is currently arranged for 10 tenant spaces, with only one space currently vacant (1,713 sq. ft.). Current tenants include University of Maryland Shore Health System, two food outlets, a barber, nail salon, and two retail stores. Gross scheduled annual income at current occupancy based on tenant lease terms is $189,304.08.
Some tenants have received rent relief in conjunction with Covid-19, and ground rent payments, further outlined below, have also been temporarily reduced to account for Covid-19 related market conditions.
Seller provided financial information, leases and associated documents are available after completion of a confidentiality form available below.
TITLE:
Subject to ground lease further described below; and is being sold free and clear of all liens.
Ground Lease – The property is being sold subject to a ground lease created in 1987. Lease payments are $48,000 per year, which have been reduced to $34,950 in conjunction with Covid-19 by agreement between the current tenant and landlord, under the ground lease.
The initial term of the lease is 40 years (commencing January 1, 1988), with one 20 year renewal available at the end of that term pursuant to the Ground Lease Agreement and associated amendments.
The ground lease tenant has an option to purchase the “leased premises” during each of the final years of the initial and renewal terms.
Copies of the ground lease and associated amendments are available after completion of a confidentiality form available below.
ADDITIONAL INFORMATION:
Please complete a Waiver and Confidentiality Agreement form to view due diligence documents outlined below. Additional documents may be added during the course of the listing period. Parties who have completed the agreement will be notified when additional information is posted.
Due diligence materials:
TAXES:
Published annual real estate taxes are $21,265.28, based on a full value assessment of $1,127,533.
Purchasers may petition for a reduction in the assessment of their property in conjunction with a purchase price substantially less than the currently assessed value of the property. Purchasers are encouraged to contact the Maryland State Department of Assessments & Taxation concerning the appeals process, and may see the following link for helpful information: Assessment Appeal Process.
SUMMARY TERMS OF SALE:
Please see the contract of sale for complete terms.
A $50,000 deposit, payable by cashier’s check, will be required of the purchaser at time and place of the onsite auction. The deposit shall be increased to 10% of the purchase price by 12:00 Noon, Monday, June 14, 2021, by wire transfer or cashier’s check, at the Auctioneer’s office. If purchased by an online bidder, the full 10% deposit is payable by wire transfer or cashier’s check by 4:30 P.M. on the day of sale. Deposit funds shall be held by A. J. Billig & Co., LLC. Balance to be paid in cash at settlement, which shall take place within 45 days. If payment of the deposit or balance does not take place within the specified time, the deposit shall be forfeited and the property may be resold at the risk and expense of the purchaser. All adjustments, including taxes, rent, ground rent, all other public charges and assessments payable on a monthly or annual basis, and sanitary and/or metropolitan district charges, if any, to be adjusted for the current year to date of settlement and assumed thereafter by the purchaser. Security deposits, if any, shall be adjusted at the time of settlement. The property will be sold in “AS IS” condition, and subject to easements, agreements, the existing leases of the tenants in place, restrictions or covenants of record affecting same, if any. The property is being sold subject to a ground lease created in 1987. Purchaser assumes the risk of loss from the date of contract forward. The Purchaser waives and releases the Seller, the Auctioneers, and their respective agents, successors and assigns from any and all claims the Purchaser and/or its successors and assigns may now have or may have in the future relating to the condition of the property, including but not limited to the environmental condition thereof. If the Seller is unable to convey good and marketable title, the purchaser’s sole remedy in law or equity shall be limited to the refund of the deposit. Upon refund of the deposit this sale shall be null and void and of no effect, and the purchaser shall have no further claim against the Seller or Auctioneers. Recordation costs, transfer taxes and all costs incidental to settlement to be paid by the purchaser except where otherwise mandated by local, State or Federal law. Time is of the essence.
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