Building Details

Buildings 1

Stories 1

Units 2

Tenancy Single

Listing Agency: Alton Webb & Associates Show Phone

Listed By: John Leeper · License #KY 283306

Source: Crexi

Added: Jul 7 Changed: Aug 18 Last Checked: Aug 25 at 6:42PM

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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 Alton Webb & Associates

Investment Insights

Based on property information with market context.

This government office building offers a stabilized configuration with an existing contract that generates gross annual income of $30,100.00. The current lease rate is noted as being below market value.

The property is located at 137 W College St in New Castle, Kentucky.

The offering is for sale.

Key Highlights

• Government office building in New Castle, KY
• Current lease contract generates $30,100 in gross annual income
• Lease rate reported as below market value

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

$30,282

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

9.18%

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%

$605,640 $605.6K

Cap Rate 7%

$432,600 $432.6K

Cap Rate 9%

$336,467 $336.5K

Market Conditions

NOI Build-Up for 2,457 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

$49.2K $20.04/SF

− Vacancy

−$8.9K −$3.61/SF

EGI

$40.4K $16.43/SF

− OpEx

−$10.1K −$4.11/SF

NOI

$30.3K $12.32/SF

Area

Henry County, KY

Vacancy

18.00%

Lease Rate

$20.04 /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%

$605,640

Cap Rate 7%

$432,600

Cap Rate 9%

$336,467

Alternative Uses

Best Use

Office B

$432.6K

$378.5K – $504.7K (±1% cap)

NOI $30,282 @ 7.0% cap · market cap 9.18%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$518.0K

$453.2K – $604.3K (±1% cap)

NOI $36,258 @ 7.0% cap · market cap 10.99%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Cabinet For Health & Family State Government Office Food Stamp Office Social Service Agency

Suggested Use

Top Pick Auto Repair Shop Real Estate Agency HVAC Service Pharmacy Hair Salon Pet Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

116

Businesses Nearby

Explore this area Business Placement

Demographics for 40050, KY

1,558

Population

831

Households

1.9

Avg Household Size

44

Median Age

26%

College-Educated

79%

High-School Grad

17.2 sq mi

ZIP Area

91

Density / Sq Mi

$45,528

Median Household Income

$39,647

Median Earnings

$707

Median Rent

$132,700

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

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Frequently Asked Questions

What type of property is this?

Office building - Government office building in New Castle with a current lease contract generating $30,100 in gross annual income.

Where is this office building located?

The property is located at 137 W College St New Castle, KY.

What is the asking price?

The asking price for this property is $330,000.

What are key features of this property?

This property features: Government office building in New Castle, KY; Current lease contract generates $30,100 in gross annual income; Lease rate reported as below market value