Commercial Land With Highway
For Sale
$1,750,000
1740 US-27, Somerset, KY 42503
COMMERCIAL - Somerset, KY
Property Size9,989 SF
Lot Size2.25 Acres
Price / SF$175.19
Days on Market315
Property Features for 1740 US-27
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
Rural
Directions
Accessed from either Hwy 27 or off of Monticello St.
Standard status
Active
APN
061-6-1-03
Size
9,989 SF
Lot size
2.25 Acres
Building Details
Year built
1970
Listing Agency:
Weichert Realtors Ford Brothers, Inc.
(606) 679-2656
Listed By:
Drew Patton · License #245767
(606) 305-2897
Added: Oct 13, 2025
Changed: Aug 4
Last Checked: Aug 23 at 12:06AM
MLS# 25503575
Copyright © 2026 ImagineMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2.25-acre commercial land property includes 9,989 square feet of existing improvements, including five residential rental units and a 3-bay garage building. An acre of 5.5-inch poured-concrete parking provides substantial on-site parking infrastructure, while the property was built in 1970.
The site offers over 100 feet of frontage along Hwy 27 and access from both Hwy 27 and Monticello Street. It is located in Somerset near Walmart, Lowe’s, Cracker Barrel, LongHorn Steakhouse, Zaxby’s, Chick-fil-A, Popeye’s, Starbucks, Chili’s, Texas Roadhouse, Kroger Marketplace, Somerset Community College, and The Center for Rural Development.
The site offers over 100 feet of frontage along Hwy 27 and access from both Hwy 27 and Monticello Street. It is located in Somerset near Walmart, Lowe’s, Cracker Barrel, LongHorn Steakhouse, Zaxby’s, Chick-fil-A, Popeye’s, Starbucks, Chili’s, Texas Roadhouse, Kroger Marketplace, Somerset Community College, and The Center for Rural Development.
Key Highlights
- 2.25 acres of commercial land
- Over 100ft of Hwy 27 road frontage
- Access from both Hwy 27 and Monticello Street
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$67,855
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.88%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,357,100
$1.4M
Cap Rate 7%
$969,357
$969.4K
Cap Rate 9%
$753,944
$753.9K
Market Conditions
NOI Build-Up for 9,989 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$129.5K $12.96/SF
− Vacancy
−$6.1K −$0.61/SF
EGI
$123.4K $12.35/SF
− OpEx
−$55.5K −$5.56/SF
NOI
$67.9K $6.79/SF
Area
Pulaski County, KY
Vacancy
4.70%
Lease Rate
$12.96 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,357,100
Cap Rate 7%
$969,357
Cap Rate 9%
$753,944
Alternative Uses
Best Use
Apartment 5plus
$969.4K
$848.2K – $1.13M
NOI $67,855 @ 7.0% cap · market cap 3.88%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.70M
$1.49M – $1.99M
NOI $119,125 @ 7.0% cap · market cap 6.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
374
Businesses Nearby
Explore this area
Business Placement
Demographics for 42503, KY
24,670
Population
11,588
Households
2.1
Avg Household Size
42
Median Age
23%
College-Educated
85%
High-School Grad
129.5 sq mi
ZIP Area
191
Density / Sq Mi
$53,377
Median Household Income
$35,319
Median Earnings
$873
Median Rent
$198,500
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - Commercial land with dual access, existing rental units, a three-bay garage, and substantial concrete parking improvements.
Where is this commercial land located?
The property is located at 1740 US-27 Somerset, KY.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: 2.25 acres of commercial land; Over 100ft of Hwy 27 road frontage; Access from both Hwy 27 and Monticello Street
