Downtown Building with Upscale
For Sale
$1,825,000
161 N Limestone, Lexington, KY 40507
Downtown building with recent renovations and lease income potential.
Property Size7,343 SF
Price / SF$248.54
Days on Market199
Property Features for 161 N Limestone
General Information
Standard status
Active
Size
7,343 SF
Property subtype
Retail
Zoning
B-2B
Listing Agency:
Block & Lot Real Estate
Listed By:
Gregory Leveridge · License #215416
(859) 309-0099
Source:
Kcrea.resimplifi
Added: Mar 12
Changed: Sep 16
Last Checked: Sep 24 at 6:34AM
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.
This downtown building features upscale renovations throughout. The first floor is currently owner-occupied by Georgie’s Social House, with a leaseback preference or potential for a new 5-year term. The second floor is leased to Relix Bridal, Inc. through October 2030. The third floor includes a common kitchenette and restrooms with individual office suites, historically leasing for $750 per month. This floor is currently vacant, offering flexibility for a new owner to convert it into a single office space, secure a single-tenant lease, or continue leasing individual office suites. Complete renovations in 2020 included a new roof, hardwood floors throughout, an elevator with coded private access, a new lobby with mail room, 2 kitchenettes, 2 restrooms per floor, new HVAC systems, interior and exterior paint, a handicap accessible ramp, and exposed brick and open ceilings on floors 2 and 3. The property is located in a prime downtown location on N Limestone Street at the corner of Church Street, across from the Courthouse, making it attractive to attorneys and various office users. It is surrounded by downtown restaurants such as Le Deauville, Corto Y Lima, Pearl's, Lussi Brown Coffee, and Jack Brown's. The property size is 7343 square feet.
Key Highlights
- Prime downtown location on N Limestone Street, across from the Courthouse
- Upscale renovations completed in 2020, including new roof, hardwood floors, and HVAC systems
- Existing leases in place for the first and second floors, providing immediate income
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
$69,391
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
3.80%
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%
$1,387,820
$1.4M
Cap Rate 7%
$991,300
$991.3K
Cap Rate 9%
$771,011
$771.0K
Market Conditions
NOI Build-Up for 7,343 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
$123.4K $16.80/SF
− Vacancy
−$12.3K −$1.68/SF
EGI
$111.0K $15.12/SF
− OpEx
−$41.6K −$5.67/SF
NOI
$69.4K $9.45/SF
Area
Lexington, KY
Vacancy
10.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
37.50%
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%
$1,387,820
Cap Rate 7%
$991,300
Cap Rate 9%
$771,011
Alternative Uses
Best Use
Mixed Use
$991.3K
$867.4K – $1.16M
NOI $69,391 @ 7.0% cap · market cap 3.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.53M
$1.34M – $1.78M
NOI $107,093 @ 7.0% cap · market cap 5.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
3,626
Businesses Nearby
Explore this area
Business Placement
Demographics for 40507, KY
2,043
Population
1,765
Households
1.2
Avg Household Size
44
Median Age
54%
College-Educated
93%
High-School Grad
0.4 sq mi
ZIP Area
5,108
Density / Sq Mi
$34,543
Median Household Income
$40,826
Median Earnings
$642
Median Rent
$391,000
Median Home Value
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Downtown building with recent renovations and lease income potential.
Where is this mixed-use property located?
The property is located at 161 N Limestone Lexington, KY.
What is the asking price?
The asking price for this property is $1,825,000.
What are key features of this property?
This property features: Prime downtown location on N Limestone Street, across from the Courthouse; Upscale renovations completed in 2020, including new roof, hardwood floors, and HVAC systems; Existing leases in place for the first and second floors, providing immediate income
