Updated Ground-Level Office
New
For Sale
$170,000
121 Malabu Drive Unit 4, Lexington, KY 40503
Flexible suite with private offices, a waiting area, restroom, and existing salon improvements.
Property Size946 SF
Days on Market5
Property Features for 121 Malabu Drive Unit 4
General Information
Standard status
Active
Size
946 SF
Class
A
Property subtype
Office
Additional Details
Floor
Ground Floor
HOA Fee
$100
Office Units
1
Building Details
Building Size
946 SF
Tenancy
Single
Listing Agency:
(859) 806-1591
Listed By:
Travis Rose, MBA
(859) 806-1591
Source:
Svn
Added: Aug 2
Changed: Aug 3
Last Checked: Aug 6 at 4:43AM
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 Travis Rose, MBA
Investment Insights
Based on property information with market context.
This office condominium at 121 Malabu Drive, Unit 4, is a ground-level commercial suite with an updated interior and an existing salon configuration. The layout includes a waiting area, multiple private offices, and a restroom, providing a practical foundation for continued salon use or reconfiguration for other office-oriented applications.
The property is positioned just off Nicholasville Road in Lexington’s retail corridor, with convenient access and ample parking. The unit is currently occupied by a hair salon tenant under a month-to-month arrangement, offering flexibility for either an owner-user or an investor. The condominium association maintains the roof and other exterior elements.
The property is positioned just off Nicholasville Road in Lexington’s retail corridor, with convenient access and ample parking. The unit is currently occupied by a hair salon tenant under a month-to-month arrangement, offering flexibility for either an owner-user or an investor. The condominium association maintains the roof and other exterior elements.
Key Highlights
- Ground‑level office condominium at 121 Malabu Drive, Unit 4
- Updated interior with existing salon configuration
- Multiple private offices, waiting area, and restroom
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
$12,546
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
7.38%
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%
$250,920
$250.9K
Cap Rate 7%
$179,229
$179.2K
Cap Rate 9%
$139,400
$139.4K
Market Conditions
NOI Build-Up for 946 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
$19.3K $20.40/SF
− Vacancy
−$2.6K −$2.72/SF
EGI
$16.7K $17.68/SF
− OpEx
−$4.2K −$4.42/SF
NOI
$12.5K $13.26/SF
Area
ZIP 40503
Vacancy
13.32%
Lease Rate
$20.40 /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%
$250,920
Cap Rate 7%
$179,229
Cap Rate 9%
$139,400
Alternative Uses
Best Use
Office B
$179.2K
$156.8K – $209.1K
NOI $12,546 @ 7.0% cap · market cap 7.38%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$197.1K
$172.5K – $230.0K
NOI $13,797 @ 7.0% cap · market cap 8.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Office units
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,655
Businesses Nearby
Explore this area
Business Placement
Demographics for 40503, KY
28,073
Population
13,437
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
8.8 sq mi
ZIP Area
3,190
Density / Sq Mi
$74,161
Median Household Income
$43,061
Median Earnings
$1,110
Median Rent
$280,000
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 units - Flexible suite with private offices, a waiting area, restroom, and existing salon improvements.
Where is this office units located?
The property is located at 121 Malabu Drive Unit 4 Lexington, KY.
What is the asking price?
The asking price for this property is $170,000.
What are key features of this property?
This property features: Ground‑level office condominium at 121 Malabu Drive, Unit 4; Updated interior with existing salon configuration; Multiple private offices, waiting area, and restroom
