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    The Largest CRE Database in the US with Over 1 Million Listings

    501 N Madison St Lexington, NE 68850

    Sponsored
    For Sale
    $599,000

    Commercial - Lexington, NE

    Property size:
    2,358 SF
    Days on Market:
    24
    Last Refresh:
    Jan 29 at 6:06 pm

    Property Features for 501 N Madison St

    General Information

    Property type
    Commercial Sale
    Property subtype
    Other
    Standard status
    Active
    Rooms
    Bathroom 1, Bathroom 2
    Bathrooms
    2
    APN
    000000-000.000-0032-010.000
    Parking features
    Garage
    Size
    2,358 SF

    Building Details

    Year built
    1978
    Year renovated
    1978
    Floors in Building
    1
    Roof type
    Asphalt
    Architectural style
    Other

    We can help!

    Listing Contact
    Clay Patton

    Marshall Land Brokers and Auctioneers (308) 234-6266

    Listing agent Clay Patton (308) 234-6266

    Listing date Jan 6, 2026

    MLS# 11449250 Listing URL

    Copyright © 2026 My State MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.

    Learn more

    Overview

    Prime Lexington Commercial Opportunity

    This commercial offering features two adjacent properties in a high-visibility location near Highway 30 in Lexington, Nebraska, presenting an opportunity for restaurant, retail, or redevelopment projects. One property, located at 501 N. Madison St., includes a 2,358-square-foot commercial building situated on an approximately 20,000-square-foot lot. Currently operating as a restaurant, the space features a commercial kitchen and dining area. All branded inventory, equipment, and signage will be removed prior to transfer. The adjacent property, located at 309 W. 5th St., features a 1,436-square-foot, two-story Craftsman-style home on an approximately 10,500-square-foot lot. This property offers potential for renovation or redevelopment. Together, these properties provide a versatile investment opportunity in a prime location, suitable for continuing as a restaurant, repurposing for a different business use, or redevelopment.
    Location Intelligence

    Current Use by Public Records

    Taco John's Fast Food Restaurant

    Suggested Use

    Realty agency Law Firm Restaurant Spa & Massage Dental Office Hair Salon Nail Salon Clothing Store Building Supply Gym & Fitness

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Lexington
    County
    Dawson
    State
    Nebraska
    Longitude
    -99.744677
    Latitude
    40.778094

    FAQs

    What type of property is this?
    Conventional restaurant - Two adjacent properties ideal for restaurant, retail, or redevelopment.
    Where is this conventional restaurant located?
    The property is located at 501 N Madison St Lexington, NE.
    What is the asking price?
    The asking price for this property is $599,000.
    What are key features of this property?
    This property features: - High-visibility location off Highway 30 in Lexington, Nebraska; - Two adjacent properties offering versatile investment options; - 501 N. Madison St.: **2,358 sq ft commercial building on a 20,000 sq ft lot**, currently operating as a restaurant with commercial kitchen and dining space
    (719) 760-0747
    Request Owner's contact information
    501 N Madison St Lexington, NE 68850
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    Lexington, NE 68850
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    501 N Madison St Lexington, NE 68850
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    We can help!
    Listing Contact
    Clay Patton
    (719) 760-0747
    Learn more
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