Cultured Pearl owners buy old motel for employee housing

Looking to address the ongoing housing needs for summer staff, Cultured Pearl owners Susan and Rob Wood purchased the former Printz Motel in Rehoboth Beach.

“We’re not the only ones with these problems,” said Susan. “It’s getting tougher and tougher every year. Businesses in every beach town are in the same situation.”

Located on the triangle-shaped lot at the corner of Columbia Avenue and Sussex Street, the decades-old, one-story, masonry-brick structure received a front-to-back renovation by McGregor Homes in 2023. The Woods purchased the property, which is about a quarter of a mile from their restaurant, in early March.

They already have some of their summer staff – J1 students from Thailand who arrived in March  – living in the former motel. Each of the six units, which sleep up to four, has internet, a full kitchen, washer and dryer, dishwasher, and heat and air conditioning.

The goal is to provide these students with a place that’s clean and safe, said Rob, who was working on securing bike parking for the employees the day of the interview. It’s a 60-degree difference in temperature from Thailand, so anything that can be done to help them get acclimated is beneficial, he said.

The Woods say the housing situation had been getting worse, but everything really changed after COVID. Everywhere they rented in the past has been sold and torn down, said Susan. 

In response, the Woods have purchased a few properties to house summer staff, but also a few year-round employees. The properties were financed through second mortgages and the use of their daughter’s college tuition money. It’s a lot cheaper for her daughter to be going to the University of Delaware than to St. John’s University in New York City, which is where she was going before COVID and then transferred from afterward, said Susan.

The Woods had been looking at the motel as a possible investment for some time, but it was priced too high to justify buying it, said Rob. Once the price came down, an as-is offer was made and accepted, he said.

“Worse-case scenario is that we end up living out of the motel,” added Susan, laughing.

This summer, the Woods aren’t using all of the rooms. Susan said another business contacted her about using a couple.

“There’s always someone looking for help,” said Susan, in a helping-my-neighbor tone.

Local municipalities are facing the same struggle, which is why Rehoboth Beach is renting two efficiency apartments from the Woods this summer.

City Manager Taylour Tedder said the rooms will be used by the city’s police department. Last year, he said, Chief Keith Banks faced challenges in securing the necessary number of seasonal officers due to the limited availability of affordable housing.

Tedder said to address the issue, the city is providing $1,500 to employees to assist with the costly down payments associated with seasonal rentals. This amount will be used to secure the two efficiency units, he said.

“We are optimistic that this arrangement will serve as a viable housing solution for our seasonal staff in the future,” said Tedder. “Additionally, we are exploring options for potential payroll deductions to further support employees with their housing needs.”