Two-Story Office Building For
For Sale
Contact for pricing
Pending
1325 S 4th St, Louisville, KY 40208
14,223 SF office building on .596 acre lot.
Property Size14,233 SF
Lot Size0.59 Acres
Days on Market861
Property Features for 1325 S 4th St
General Information
Standard status
Pending
Size
14,233 SF
Class
B
Lot size
0.59 Acres
Property subtype
Office
Listing Agency:
Walter Wagner Jr Company LLC
Listed By:
Daniel Dunlevy · License #KY 63546
(502) 562-9200
Source:
Crexi
Added: Apr 25, 2024
Changed: Aug 24
Last Checked: Aug 30 at 10:58PM
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 Walter Wagner Jr Company LLC
Investment Insights
Based on property information with market context.
This two-story building, encompassing 14,223 square feet, is situated on the northeast corner of S 4th Street and Park Avenue, Louisville, KY. The property occupies a 0.596-acre parcel, equivalent to 25,979 square feet, and includes 37 parking spaces. Zoned TNZD, the building is suitable for various uses such as medical, law practice, non-profit, marketing, engineering, and architectural firms. A new roof and HVAC system were installed in 2019. The first two floors feature a lobby/reception area, conference room, private offices, break areas, storage space, and four restrooms with multiple fixtures. The 3,488-square-foot finished basement, not included in the gross square footage, offers an open office area, two additional restrooms with multiple fixtures, a mechanical room, and a wet fire protection system.
Key Highlights
- 14,223 SF Two Story Building on .596 Acre Parcel
- New Roof and HVAC (2019)
- Zoned TNZD: Suitable for Medical, Law, Non‑Profit, Marketing, Engineering, and Architectural Firms
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
$183,819
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
8.97%
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%
$3,676,380
$3.7M
Cap Rate 7%
$2,625,986
$2.6M
Cap Rate 9%
$2,042,433
$2.0M
Market Conditions
NOI Build-Up for 14,233 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
$298.9K $21.00/SF
− Vacancy
−$53.8K −$3.78/SF
EGI
$245.1K $17.22/SF
− OpEx
−$61.3K −$4.31/SF
NOI
$183.8K $12.92/SF
Area
Louisville, KY
Vacancy
18.00%
Lease Rate
$21.00 /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%
$3,676,380
Cap Rate 7%
$2,625,986
Cap Rate 9%
$2,042,433
Alternative Uses
Best Use
Office B
$2.63M
$2.30M – $3.06M
NOI $183,819 @ 7.0% cap · market cap 8.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.69M
$3.23M – $4.30M
NOI $258,244 @ 7.0% cap · market cap 12.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,226
Businesses Nearby
Explore this area
Business Placement
Demographics for 40208, KY
17,048
Population
6,675
Households
2.6
Avg Household Size
27
Median Age
34%
College-Educated
88%
High-School Grad
2.6 sq mi
ZIP Area
6,557
Density / Sq Mi
$37,714
Median Household Income
$17,255
Median Earnings
$914
Median Rent
$153,100
Median Home Value
Market
Vacancy Rate% for Office in Louisville, KY
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - 14,223 SF office building on .596 acre lot.
Where is this office building located?
The property is located at 1325 S 4th St Louisville, KY.
What is the asking price?
The asking price for this property is $2,050,000.
What are key features of this property?
This property features: 14,223 SF Two Story Building on .596 Acre Parcel; New Roof and HVAC (2019); Zoned TNZD: Suitable for Medical, Law, Non‑Profit, Marketing, Engineering, and Architectural Firms
