Creative Office
For Sale
$1,750,000
146 Third Street, Lexington, KY 40508
Historically renovated two-story office building includes elevator, boardroom, kitchenette, and on-site parking.
Property Size7,258 SF
Price / SF$241.11
Days on Market130
Property Features for 146 Third Street
General Information
Standard status
Active
Size
7,258 SF
Total Parking Spaces
6
Property subtype
Office
Additional Details
Drive-In Doors
1
Amenities
Wood
Paved Driveway, On Site.
Building Details
Year Built
1840
Year Renovated
2015
Stories
2
Listing Agency:
Block + Lot Real Estate
(859) 338-8243
Listed By:
Adam Boardman · License #72655
(859) 338-8243
Source:
Xome
Added: Apr 17
Changed: Aug 24
Last Checked: Aug 22 at 6:46AM
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 1840 and renovated in 2015, this two-story creative office building combines original architectural elements with modern updates. The first floor features original hardwood floors and exposed brick, along with a boardroom with folding privacy doors, granite counters, and a fireplace. A spacious library includes custom maple cabinetry and quartz countertops, and there is a tiled kitchenette with a dishwasher, plus two restrooms including a full bath with shower. The main level also provides direct access to a flexible garage space with a drive-in door.
A steel-wrapped open stairwell and an elevator support movement between levels, with expansive windows providing daylight. The second floor offers vaulted ceilings with exposed joists, generous open work areas with hardwood floors, and a private sundeck with custom railing. The property includes approximately 6,848 SF above grade and an additional 410 SF of finished lower-level space that may serve storage or supplemental workspace.
On-site parking includes six dedicated spaces, with additional surface parking described as available nearby. Renovation improvements noted include a new roof, HVAC systems, windows, the elevator, and a porous concrete parking surface.
A steel-wrapped open stairwell and an elevator support movement between levels, with expansive windows providing daylight. The second floor offers vaulted ceilings with exposed joists, generous open work areas with hardwood floors, and a private sundeck with custom railing. The property includes approximately 6,848 SF above grade and an additional 410 SF of finished lower-level space that may serve storage or supplemental workspace.
On-site parking includes six dedicated spaces, with additional surface parking described as available nearby. Renovation improvements noted include a new roof, HVAC systems, windows, the elevator, and a porous concrete parking surface.
Key Highlights
- Historically renovated two‑story creative office building built in 1840 at 146 E. Third Street
- Total space includes approx. 6,848 SF above grade plus approx. 410 SF finished lower‑level space
- 2015 renovation with new roof, HVAC systems, windows, elevator, and porous concrete parking surface
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
$81,130
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
4.64%
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%
$1,622,600
$1.6M
Cap Rate 7%
$1,159,000
$1.2M
Cap Rate 9%
$901,444
$901.4K
Market Conditions
NOI Build-Up for 7,258 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
$130.6K $18.00/SF
− Vacancy
−$22.5K −$3.10/SF
EGI
$108.2K $14.90/SF
− OpEx
−$27.0K −$3.73/SF
NOI
$81.1K $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%
$1,622,600
Cap Rate 7%
$1,159,000
Cap Rate 9%
$901,444
Alternative Uses
Best Use
Office B
$1.16M
$1.01M – $1.35M
NOI $81,130 @ 7.0% cap · market cap 4.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.51M
$1.32M – $1.76M
NOI $105,853 @ 7.0% cap · market cap 6.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
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
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Creative space - Historically renovated two-story office building includes elevator, boardroom, kitchenette, and on-site parking.
Where is this creative space located?
The property is located at 146 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: Historically renovated two‑story creative office building built in 1840 at 146 E. Third Street; Total space includes approx. 6,848 SF above grade plus approx. 410 SF finished lower‑level space; 2015 renovation with new roof, HVAC systems, windows, elevator, and porous concrete parking surface
