Small Town News

Rehoboth landmark to be auctioned

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Court orders sale to satisfy petitions by owners of Lingo's Market parcels

Delaware's Chancery Court has ordered the auction of a prominent and historic Rehoboth Beach commercial property. The First Street and Baltimore Avenue property containing Lingo's Market, which celebrated its 110th anniversary in 2008, will be sold by Emmert Auction Associates at 1 p.m., Saturday, May 1, onsite.

The commercially zoned property, in two separate parcels, includes an estimated 20,000 square feet of land and two buildings. One of those buildings, fronting on First Street, contains the Lingo's Market corner store established in 1898, by John A Lingo and operated continuously by members of the family through the 2009 summer season. It also includes four other street-level storefronts and seven apartment units on the second floor. That property comprises three lots measuring approximately 100 feet on First Street and 150 feet fronting Baltimore Avenue.

The other parcel, with 47 feet fronting Baltimore Avenue, is 88 feet deep and includes a two-story commercial building with a hair salon at street level and three efficiency apartments above. Combined, the parcels also include 26 parking spaces.

According to auctioneer Butch Emmert, the parcel fronting First Street will be sold first, followed by the property fronting on Baltimore Avenue. Then the high bids for both properties will be combined, with an additional $10,000 or so, as a starting bid for the purchase of both parcels as an entirety. "I've talked to at least a half a dozen of the heavy hitters in Rehoboth, as well as family members, who are interested and the sense is that the property will go as one piece," said Emmert. The property is expected to generate bids totaling several million.

Emmert said the last major commercial property he sold at auction was the Sunview Motel/Playland parcel on the Boardwalk, about 10 years ago. "That went to Dominick [Pulieri of Grotto Pizza fame] for $3.4 million or so."

Delaware's Court of Chancery ordered the Lingo property auction after petitions were filed by siblings Archibald W. Lingo and Dinah H. Lingo seeking partitioning of the property. According to attorney Richard Berl, partitioning amounts to liquidation for estate purposes. Chancery Court appointed Berl as trustee for the partitioning process. "This happens when multiple owners of real property can't agree on how the property will be managed or what can be done with it," said Berl. "When it's a large tract of property, it can usually be divided equitably. But when the property involves buildings that can't reasonably be taken apart, it usually goes to public auction with the court deciding how the proceeds are to be distributed."

The petitioners worked in the market at various times with their parents over decades. In the last two decades, Archie Lingo took summers off from his job as a Delaware Bay pilot to work in the store and bake fresh bread sold in the market and served at Rehoboth Beach restaurants. This auction follows the death of their mother, Eleanor W. Lingo, who died in November 2009, at the age of 94. She worked in the market for 67 years, retiring at the age of 90. Her husband, William H. Lingo, died in 1981. Neither Archie nor Dinah Lingo could be reached for comment.

Commercially zoned property in Rehoboth Beach can be developed with 100 percent coverage as a commercial use. According to Rehoboth Beach building official Terri Sullivan, a restaurant use, for example, would require no parking and could be built property line to property line. She said total floor space in that zone can be twice the square footage of the property. The height limit for that zone is 42 feet, several feet taller than the present buildings.

"The properties as they exist generate excellent rental income," said Emmert, "but many people are looking at it for redevelopment. There will never not be demand for downtown Rehoboth commercial. With the ocean nearby and tucked between those two beautiful lakes, Rehoboth is unique, charming. I'd say this is the most prominent piece of Rehoboth property ever sold at public auction."

THE COMMERCIALLY ZONED PROPERTY, IN TWO SEPARATE PARCELS, INCLUDES AN ESTIMATED 20,000 SQUARE FEET OF LAND AND TWO BUILDINGS.





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