Hotel Property with Flexible
For Sale
$4,000,000
1620 Arthur St, Louisville, KY 40208
EZ-1 zoning supports hospitality, office, residential, mixed-use, and adaptive reuse applications.
Property Size68,600 SF
Price / SF$58.31
Days on Market63
Property Features for 1620 Arthur St
General Information
Standard status
Active
Size
68,600 SF
Property subtype
Hospitality
Zoning
EZ1
Amenities
Power
Water
Sewer
Natural Gas
Vacant
Listing Agency:
BERKSHIRE HATHAWAY HomeServices, Parks & Weisberg Realtors
Listed By:
Dave Parks · License #202046
(502) 897-3321
Source:
Kcrea.resimplifi
Added: Jul 22
Changed: Sep 9
Last Checked: Sep 22 at 1:08PM
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 BERKSHIRE HATHAWAY HomeServices, Parks & Weisberg Realtors
Investment Insights
Based on property information with market context.
This 2.7016-acre offering combines the 2.4458-acre parcel at 1620 Arthur Street with an adjacent 0.2558-acre parcel at 320 E. Gaulbert Avenue. The site is currently operated as a transitional housing facility and was previously developed as a hotel property, with past operations under Days Inn and Clarion flags. The improvements date to 1961.
Located immediately off Interstate 65, the property is minutes from the University of Louisville, Downtown Louisville, Churchill Downs, the Kentucky Exposition Center, the Central Business District, and Louisville Muhammad Ali International Airport. Louisville Metro EZ-1 zoning accommodates a broad range of commercial, hospitality, office, residential, mixed-use, and adaptive reuse applications, supporting multiple redevelopment and operating strategies.
Located immediately off Interstate 65, the property is minutes from the University of Louisville, Downtown Louisville, Churchill Downs, the Kentucky Exposition Center, the Central Business District, and Louisville Muhammad Ali International Airport. Louisville Metro EZ-1 zoning accommodates a broad range of commercial, hospitality, office, residential, mixed-use, and adaptive reuse applications, supporting multiple redevelopment and operating strategies.
Key Highlights
- 2.7016 total acres across two parcels
- 2.4458‑acre parcel at 1620 Arthur Street plus 0.2558‑acre parcel at 320 E. Gaulbert Avenue
- Currently operated as a transitional housing facility
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
$258,073
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
6.45%
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%
$5,161,460
$5.2M
Cap Rate 7%
$3,686,757
$3.7M
Cap Rate 9%
$2,867,478
$2.9M
Market Conditions
NOI Build-Up for 68,600 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
$987.8K $14.40/SF
− Vacancy
−$444.5K −$6.48/SF
EGI
$543.3K $7.92/SF
− OpEx
−$285.2K −$4.16/SF
NOI
$258.1K $3.76/SF
Area
Louisville, KY
Vacancy
45.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
52.50%
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%
$5,161,460
Cap Rate 7%
$3,686,757
Cap Rate 9%
$2,867,478
Alternative Uses
Best Use
Hotel Hospitality
$3.69M
$3.23M – $4.30M
NOI $258,073 @ 7.0% cap · market cap 6.45%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$17.78M
$15.56M – $20.74M
NOI $1,244,678 @ 7.0% cap · market cap 31.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
883
Businesses Nearby
Explore this area
Business Placement
Demographics for 40208, KY
17,048
Population
6,675
Households
2.6
Avg Household Size
27
Median Age
34%
College-Educated
88%
High-School Grad
2.6 sq mi
ZIP Area
6,557
Density / Sq Mi
$37,714
Median Household Income
$17,255
Median Earnings
$914
Median Rent
$153,100
Median Home Value
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Frequently Asked Questions
What type of property is this?
Hotel - EZ-1 zoning supports hospitality, office, residential, mixed-use, and adaptive reuse applications.
Where is this hotel located?
The property is located at 1620 Arthur St Louisville, KY.
What is the asking price?
The asking price for this property is $4,000,000.
What are key features of this property?
This property features: 2.7016 total acres across two parcels; 2.4458‑acre parcel at 1620 Arthur Street plus 0.2558‑acre parcel at 320 E. Gaulbert Avenue; Currently operated as a transitional housing facility
