Three-Story Office
For Sale
$3,100,000
1020 Monarch St, Lexington, KY 40513
Elevator-served professional property with leased first-floor space and flexible upper-floor office configurations.
Property Size22,536 SF
Price / SF$137.56
Days on Market329
Property Features for 1020 Monarch St
General Information
Standard status
Active
Size
22,536 SF
Elevators
Yes
Property subtype
Office
Zoning
P-1
Additional Details
Asking Price
$3,100,000
Amenities
Power
Water
Sewer
Building Details
Year Built
2004
Buildings
1
Stories
3
Tenancy
Multi
Listing Agency:
The Gibson Company
(859) 224-8833
Listed By:
Kevin Verhoven · License #58263
(859) 224-8833
Source:
Kcrea.resimplifi
Added: Oct 6, 2025
Changed: Aug 29
Last Checked: Aug 29 at 2:40PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of The Gibson Company
Investment Insights
Based on property information with market context.
Built in 2004, this three-story professional office building includes elevator service and surface parking. The first floor is leased to two professional tenants, while the upper levels provide a range of existing office, meeting, training, break, and storage areas.
The second floor includes a training room, open workstation area, three private offices, a conference room, and a break room. The 7,632 RSF third floor adds 22 private offices, large and small conference rooms, two public restrooms, one private restroom, a break room, and dedicated storage. The property is near Harrodsburg Road, New Circle Road, and Man O’ War Boulevard, with restaurants, retail, and professional services in the surrounding Beaumont Centre area. Zoning is P-1.
The second floor includes a training room, open workstation area, three private offices, a conference room, and a break room. The 7,632 RSF third floor adds 22 private offices, large and small conference rooms, two public restrooms, one private restroom, a break room, and dedicated storage. The property is near Harrodsburg Road, New Circle Road, and Man O’ War Boulevard, with restaurants, retail, and professional services in the surrounding Beaumont Centre area. Zoning is P-1.
Key Highlights
- 7,632 RSF third floor with 22 private offices and multiple conference rooms
- First floor leased to two professional tenants
- Three‑story office building constructed in 2004
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
$251,907
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
8.13%
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%
$5,038,140
$5.0M
Cap Rate 7%
$3,598,671
$3.6M
Cap Rate 9%
$2,798,967
$2.8M
Market Conditions
NOI Build-Up for 22,536 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
$405.6K $18.00/SF
− Vacancy
−$69.8K −$3.10/SF
EGI
$335.9K $14.90/SF
− OpEx
−$84.0K −$3.73/SF
NOI
$251.9K $11.18/SF
Area
Lexington, KY
Vacancy
17.20%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$5,038,140
Cap Rate 7%
$3,598,671
Cap Rate 9%
$2,798,967
Alternative Uses
Best Use
Office B
$3.60M
$3.15M – $4.20M
NOI $251,907 @ 7.0% cap · market cap 8.13%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.70M
$4.11M – $5.48M
NOI $328,672 @ 7.0% cap · market cap 10.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,468
Businesses Nearby
Explore this area
Business Placement
Demographics for 40513, KY
11,244
Population
4,734
Households
2.4
Avg Household Size
45
Median Age
71%
College-Educated
98%
High-School Grad
14.7 sq mi
ZIP Area
765
Density / Sq Mi
$126,642
Median Household Income
$76,503
Median Earnings
$1,413
Median Rent
$448,100
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Elevator-served professional property with leased first-floor space and flexible upper-floor office configurations.
Where is this office building located?
The property is located at 1020 Monarch St Lexington, KY.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: 7,632 RSF third floor with 22 private offices and multiple conference rooms; First floor leased to two professional tenants; Three‑story office building constructed in 2004
