REHOBOTH BEACH, Del. - The property housing the Blue Moon Restaurant is moving through the sale process after being listed as “active under contract,” a step that signals a deal has been reached but is not yet final.
The designation means the buyer and seller have agreed on terms, but several key steps remain before closing. Those typically include things like inspections.
The property at 35 Baltimore Ave. was set for auction at a Sussex County sheriff's sale on Tuesday, but was first originally listed on Jack Lingo on Dec. 15 with an asking price of $4.5 million. The sale includes both the restaurant business and an apartment on site, along with five grandfathered apartment licenses that allow continued residential use under older zoning rules.
Representatives with Jack Lingo Realtors said they could not disclose the identity of the buyer or the final negotiated price while the transaction is pending.
For longtime customers, the uncertainty surrounding the sale has raised questions about what comes next. Jennifer Meager, a frequent visitor, said the restaurant has long been part of her family’s traditions.
“Just remembering lots of fun family times and birthday celebrations,” Meager said. “I definitely hope it stays the same.”
Owners Tim Ragan and Randy Haney indicated they hope the restaurant’s legacy continues. In a statement to CoastTV, Ragan said, “We are open and dedicated to providing the premier dining and entertainment experience our community has loved for decades, and we look forward to continuing this tradition of excellence for the next 45 years.”
Realtor Carrie Lingo said the owners are pursuing the sale as they look toward retirement, adding that efforts are being made to ensure employees are supported and operations are not disrupted.
The Blue Moon Restaurant, which opened in 1981, remains open during the sale process. Known for its fine dining and entertainment including drag shows, bingo and live music the restaurant continues to operate as usual while the transaction moves toward closing.
Real estate deals at this stage can take weeks or even months to finalize, depending on inspections and other contingencies. Until those steps are completed, ownership of the property has not officially changed.
