Renovated Historic Office
For Sale
$1,750,000
146 E Third Street, Lexington, KY 40508
Commercial Sale, Lexington, KY
Property Size7,258 SF
Lot Size0.21 Acres
Price / SF$255.55
Days on Market159
Property Features for 146 E Third Street
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning description
B-2A Downtown Frame Business
Rooms
Basement
Basement
Interior Entry, Partially Finished, Concrete
Subdivision
Commercial
Directions
N. Limestone to right on E. Third Street, the property will be on your right across from the Carrick House.
Standard status
Active
APN
11355625
Size
6,848 SF
Lot size
0.21 Acres
Amenities
boardroom
library
fireplace
granite counters
custom maple cabinetry
quartz countertops
kitchenette
full bath with shower
garage space with drive-in door
private sundeck
rooftop deck
Building Details
Year built
1840
Floors in Building
3
Listing Agency:
Block + Lot Homes
(859) 309-0099
Listed By:
Adam Boardman · License #72655
(859) 338-8243
Added: Apr 21
Changed: Sep 12
Last Checked: Sep 26 at 12:06AM
MLS# 26008596
Copyright © 2026 ImagineMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This two-story office building at 146 E. Third Street contains approximately 6,848 square feet above grade, plus 410 square feet of finished lower-level space. Originally constructed in 1840 and renovated in 2015, the property combines original hardwood floors and exposed brick with updated mechanical systems, windows, a roof, and an elevator. The first floor includes reception and conference areas, a library with custom cabinetry, kitchenette, two restrooms, and flexible garage space with a drive-in door. The second floor provides open work areas, vaulted ceilings with exposed joists, a breezeway, and access to a private sundeck.
The property is located in Downtown Lexington near retail and restaurants. Six dedicated parking spaces are provided onsite, with additional surface parking nearby. A porous concrete parking surface, natural light, and flexible interior layout support a range of professional office configurations.
The property is located in Downtown Lexington near retail and restaurants. Six dedicated parking spaces are provided onsite, with additional surface parking nearby. A porous concrete parking surface, natural light, and flexible interior layout support a range of professional office configurations.
Key Highlights
- Approximately 6,848 SF above grade plus 410 SF of finished lower‑level space
- Two‑story office building originally constructed in 1840
- Complete renovation completed in 2015
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
$76,547
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
4.37%
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%
$1,530,940
$1.5M
Cap Rate 7%
$1,093,529
$1.1M
Cap Rate 9%
$850,522
$850.5K
Market Conditions
NOI Build-Up for 6,848 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
$123.3K $18.00/SF
− Vacancy
−$21.2K −$3.10/SF
EGI
$102.1K $14.90/SF
− OpEx
−$25.5K −$3.73/SF
NOI
$76.5K $11.18/SF
Area
Lexington, KY
Vacancy
17.20%
Lease Rate
$18.00 /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%
$1,530,940
Cap Rate 7%
$1,093,529
Cap Rate 9%
$850,522
Alternative Uses
Best Use
Office B
$1.09M
$956.8K – $1.28M
NOI $76,547 @ 7.0% cap · market cap 4.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.43M
$1.25M – $1.66M
NOI $99,873 @ 7.0% cap · market cap 5.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Drive-in doors
Location Intelligence
Trade Area within ½ mile
3,381
Businesses Nearby
Explore this area
Business Placement
Demographics for 40508, KY
25,586
Population
11,458
Households
2.2
Avg Household Size
26
Median Age
36%
College-Educated
86%
High-School Grad
4.2 sq mi
ZIP Area
6,092
Density / Sq Mi
$28,040
Median Household Income
$13,316
Median Earnings
$900
Median Rent
$174,900
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Office building - Two-story professional workspace with original architectural details, updated systems, elevator access, and flexible interior areas.
Where is this office building located?
The property is located at 146 E Third Street Lexington, KY.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Approximately 6,848 SF above grade plus 410 SF of finished lower‑level space; Two‑story office building originally constructed in 1840; Complete renovation completed in 2015
