1209 S Croatan Hwy, Kill Devil Hills, NC 27948

1209 S Croatan Highway represents a rare opportunity to acquire a fully leased, income-producing commercial asset with exceptional visibility and long-term upside in the heart of Kill Devil Hills. The property is currently 100% leased to three tenants, providing stable in-place cash flow, with all leases expiring December 2026, offering a clean and well-defined near-term lease rollover.

The improvements total approximately 7,000 square feet situated on a 29,000 SF commercially zoned parcel with 111 feet of direct Croatan Highway (Bypass) frontage, excellent curb appeal, and 26 on-site parking spaces on 8,000 SF concrete parking area. The property benefits from strong street presence and direct access to both the Bypass and Wrightsville Avenue, positioning the asset favorably for retail, restaurant, service, or mixed-use users.

Current rents are intentionally below market, creating a compelling value-add opportunity through lease renewal, rent reset, and conversion to NNN lease structures upon expiration. Post-stabilization pro forma supports meaningful NOI growth through market-rate leasing and expense pass-throughs. The property is well suited for investors seeking near-term income growth as well as owner-users planning future occupancy.

At the offering price, the property reflects a low in-place cap rate, which is a direct function of below-market rents and the current modified gross expense structure rather than asset performance or location. This is intentional and creates the investment opportunity. Upon lease expiration in December 2026, the asset supports a transition to market-rate rents and NNN lease structures, resulting in a projected stabilized NOI that materially improves yield. Based on conservative market assumptions, post-stabilization NOI supports a mid-to-high 7% cap rate profile, aligning the asset with prevailing investor expectations for well-located Outer Banks commercial properties. Buyers are acquiring secure in-place income today with a clearly defined and near-term path to enhanced returns.

Zoning allows for a wide range of uses including restaurant, bar/lounge, retail, mixed-use, and short-term lodging, providing exceptional flexibility for repositioning or redevelopment. Approximately 72% of the floor area is well above base flood, and the site’s size, frontage, and parking ratio are increasingly difficult to replicate along this corridor.
Ownership has maintained the property as an operational asset. A planned capital investment for roof and siding improvements to portions of the buildings further enhances long-term durability and supports future leasing.

The asset is offered as a fee simple sale, free of ground leases, portfolio constraints, or distress conditions. In-place income provides reliable carry through lease expiration, while the defined rollover timeline creates a clear path to value enhancement.

This offering is ideally suited for value-add investors, 1031 exchange buyers, and owner-users seeking a well-located Outer Banks commercial property with strong fundamentals, visibility, and multiple exit strategies.