Updated Duplex with Separate
For Sale
$274,900
1273 South Preston Hwy, Louisville, KY 40203
Two-unit property with refreshed interiors, dedicated utility metering, and one vacant residence available for occupancy.
Property Size2,510 SF
Days on Market8
Property Features for 1273 South Preston Hwy
General Information
Standard status
Active
Size
2,510 SF
Property subtype
Multifamily
Zoning
Office and Residential
Units
Unit Mix
2 x 2BR/1BA
Multifamily Units
2
Additional Details
Highway Access
Yes
Building Details
Building Size
2,510 SF
Buildings
1
Units
2
Tenancy
Single
Listing Agency:
Coldwell Banker McMahan
Listed By:
Will Bockoven · License #261223
(502) 767-9958
Source:
Cbcworldwide
Added: Aug 28
Changed: Sep 1
Last Checked: Sep 4 at 2:00AM
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 Coldwell Banker McMahan
Investment Insights
Based on property information with market context.
This duplex contains two separately metered residences, each offering 2 bedrooms, 1 bath, and approximately 1,250 SF. Interior features include granite countertops, updated cabinetry, laundry hookups, HVAC, water heaters, and modern finishes. Recent property improvements include newer HVAC systems, water heaters, a roof, and replacement windows.
The property is located at 1273 South Preston Hwy in Louisville, near Downtown Louisville, employment centers, healthcare facilities, entertainment districts, and Interstate 65. One first-floor unit is occupied on a month-to-month arrangement, while the second-floor unit is vacant, providing flexibility for an owner-occupant or leasing strategy. The property is zoned Office and Residential.
The property is located at 1273 South Preston Hwy in Louisville, near Downtown Louisville, employment centers, healthcare facilities, entertainment districts, and Interstate 65. One first-floor unit is occupied on a month-to-month arrangement, while the second-floor unit is vacant, providing flexibility for an owner-occupant or leasing strategy. The property is zoned Office and Residential.
Key Highlights
- Two separately metered 2‑bedroom, 1‑bath units
- Approximately 1,250 SF per unit
- First‑floor unit occupied month to month; second‑floor unit vacant
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
$21,120
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
7.68%
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%
$422,400
$422.4K
Cap Rate 7%
$301,714
$301.7K
Cap Rate 9%
$234,667
$234.7K
Market Conditions
NOI Build-Up for 2,510 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
$31.9K $12.72/SF
− Vacancy
−$1.8K −$0.70/SF
EGI
$30.2K $12.02/SF
− OpEx
−$9.1K −$3.61/SF
NOI
$21.1K $8.41/SF
Area
Louisville, KY
Vacancy
5.50%
Lease Rate
$12.72 /SF/Yr
Expense Ratio
30.00%
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%
$422,400
Cap Rate 7%
$301,714
Cap Rate 9%
$234,667
Alternative Uses
Best Use
Multifamily LT 5
$301.7K
$264.0K – $352.0K
NOI $21,120 @ 7.0% cap · market cap 7.68%
Second Best
Apartment 5plus
$244.0K
$213.5K – $284.7K
NOI $17,082 @ 7.0% cap · market cap 6.21%
Theoretical Best
Office A
$650.6K
$569.3K – $759.0K
NOI $45,541 @ 7.0% cap · market cap 16.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Single-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
574
Businesses Nearby
Explore this area
Business Placement
Demographics for 40203, KY
16,801
Population
10,754
Households
1.6
Avg Household Size
37
Median Age
22%
College-Educated
86%
High-School Grad
2.9 sq mi
ZIP Area
5,793
Density / Sq Mi
$31,430
Median Household Income
$32,581
Median Earnings
$828
Median Rent
$179,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two-unit property with refreshed interiors, dedicated utility metering, and one vacant residence available for occupancy.
Where is this duplex located?
The property is located at 1273 South Preston Hwy Louisville, KY.
What is the asking price?
The asking price for this property is $274,900.
What are key features of this property?
This property features: Two separately metered 2‑bedroom, 1‑bath units; Approximately 1,250 SF per unit; First‑floor unit occupied month to month; second‑floor unit vacant
