Three-Story Professional Office
For Sale
$2,950,000
1020 Monarch Street, Lexington, KY 40513
COMMERCIAL - Lexington, KY
Property Size22,536 SF
Lot Size1.45 Acres
Price / SF$130.90
Days on Market321
Property Features for 1020 Monarch Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
P-1 Professional Office
Subdivision
Commercial
Directions
New Circle Road to Harrodsburg Road, left on Beaumont Centre Circle
Standard status
Active
APN
38111720
Size
22,536 SF
Lot size
1.45 Acres
Building Details
Year built
2004
Floors in Building
3
Roof type
Membrane
Listing Agency:
The Gibson Company
(859) 224-8833
Listed By:
Kevin Verhoven · License #58263
(859) 224-8833
Added: Oct 6, 2025
Changed: Aug 4
Last Checked: Aug 22 at 7:06AM
MLS# 25503131
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.
1020 Monarch Street is a well-maintained three-story professional office building totaling approximately 22,536 square feet, built in 2004. The building includes elevator service and ample surface parking, with a membrane roof.
The first floor is fully leased to two professional tenants, providing stable income. The second floor includes a large training room, an open area suitable for cubicles or workstations, three private offices, a large conference room, and a spacious break room. The third floor features 22 private offices, large and small conference rooms, two public restrooms plus one private restroom, a large break room, and a dedicated storage room, totaling 7,632 RSF.
Located in the heart of Beaumont Centre near Harrodsburg Road, New Circle Road, and Man O' War Boulevard, the property is surrounded by restaurants, retail, and professional services. The configuration supports an owner-occupant strategy for occupying upper floors while retaining existing rental income on the first floor.
The first floor is fully leased to two professional tenants, providing stable income. The second floor includes a large training room, an open area suitable for cubicles or workstations, three private offices, a large conference room, and a spacious break room. The third floor features 22 private offices, large and small conference rooms, two public restrooms plus one private restroom, a large break room, and a dedicated storage room, totaling 7,632 RSF.
Located in the heart of Beaumont Centre near Harrodsburg Road, New Circle Road, and Man O' War Boulevard, the property is surrounded by restaurants, retail, and professional services. The configuration supports an owner-occupant strategy for occupying upper floors while retaining existing rental income on the first floor.
Key Highlights
- Approximately 22,536 SF three‑story office building built in 2004
- 1.45‑acre site with elevator service and ample surface parking
- First floor fully leased to two professional tenants
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
8.54%
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 8.54%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.70M
$4.11M – $5.48M
NOI $328,672 @ 7.0% cap · market cap 11.14%
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 - Well-maintained three-story office with elevator service, ample surface parking, and a fully leased first floor.
Where is this office building located?
The property is located at 1020 Monarch Street Lexington, KY.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: Approximately 22,536 SF three‑story office building built in 2004; 1.45‑acre site with elevator service and ample surface parking; First floor fully leased to two professional tenants
