16-Unit Studio Apartment
For Sale
$1,250,000
1416 Townley Drive, Lexington, KY 40511
Multifamily property with studio residences, individual kitchens, basement storage, and updated exterior staircases.
Property Size5,040 SF
Lot Size0.41 Acres
Price / SF$248.02
Days on Market236
Property Features for 1416 Townley Drive
General Information
Standard status
Active
Size
5,040 SF
Lot size
0.41 Acres
Property subtype
Multifamily
Zoning
R-1C
Site & Location
Road Access
Yes
Public Transit
Yes
Units
Unit Mix
16 x studio
Multifamily Units
16
Amenities
basement storage
Building Details
Year Built
1959
Listing Agency:
Block & Lot Real Estate
(859) 801-8038
Listed By:
Alaina Stokes · License #74753
(859) 801-8038
Source:
Kcrea.resimplifi
Added: Jan 8
Changed: Aug 29
Last Checked: Sep 1 at 2:41PM
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 Block & Lot Real Estate
Investment Insights
Based on property information with market context.
Built in 1959, this 16-unit multifamily property consists of studio apartments with one bathroom, hardwood and tile flooring, and designated kitchen areas equipped with ranges, ovens, and refrigerators. Basement storage is available to tenants, and the basement may accommodate coin-operated laundry equipment. Exterior staircases have been updated.
The property is located at 1416 Townley Drive in Lexington’s Meadowthorpe neighborhood, near The Commons development and Leestown Road. Public transportation and retail centers are nearby, while the address provides access to downtown Lexington, universities, healthcare centers, and major employment areas. The property is zoned R-1C and occupies 0.405 acres.
The property is located at 1416 Townley Drive in Lexington’s Meadowthorpe neighborhood, near The Commons development and Leestown Road. Public transportation and retail centers are nearby, while the address provides access to downtown Lexington, universities, healthcare centers, and major employment areas. The property is zoned R-1C and occupies 0.405 acres.
Key Highlights
- 16‑unit multifamily property with studio apartments
- Built in 1959 on 0.405 acres
- Each residence includes a designated kitchen with range, oven, and refrigerator
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
$38,160
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
3.05%
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%
$763,200
$763.2K
Cap Rate 7%
$545,143
$545.1K
Cap Rate 9%
$424,000
$424.0K
Market Conditions
NOI Build-Up for 5,040 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
$72.6K $14.40/SF
− Vacancy
−$3.2K −$0.63/SF
EGI
$69.4K $13.77/SF
− OpEx
−$31.2K −$6.19/SF
NOI
$38.2K $7.57/SF
Area
ZIP 40511
Vacancy
4.40%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
45.00%
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%
$763,200
Cap Rate 7%
$545,143
Cap Rate 9%
$424,000
Alternative Uses
Best Use
Apartment 5plus
$545.1K
$477.0K – $636.0K
NOI $38,160 @ 7.0% cap · market cap 3.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.05M
$914.5K – $1.22M
NOI $73,157 @ 7.0% cap · market cap 5.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
567
Businesses Nearby
Explore this area
Business Placement
Demographics for 40511, KY
36,146
Population
14,963
Households
2.4
Avg Household Size
35
Median Age
38%
College-Educated
89%
High-School Grad
86.0 sq mi
ZIP Area
420
Density / Sq Mi
$77,476
Median Household Income
$43,416
Median Earnings
$1,159
Median Rent
$233,400
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?
Apartment building - Multifamily property with studio residences, individual kitchens, basement storage, and updated exterior staircases.
Where is this apartment building located?
The property is located at 1416 Townley Drive Lexington, KY.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 16‑unit multifamily property with studio apartments; Built in 1959 on 0.405 acres; Each residence includes a designated kitchen with range, oven, and refrigerator
