40,000 SF Industrial
For Sale
Contact for pricing
1620 W 7th St, Owensboro, KY 42301
Industrial building suitable for manufacturing, warehousing, or distribution.
Property Size40,000 SF
Price / SF$65
Days on Market155
Property Features for 1620 W 7th St
General Information
Standard status
Active
Size
40,000 SF
Property subtype
Industrial
Zoning
I-2
Listing Agency:
Triple Crown Realty Group
(270) 929-1721
Listed By:
Ted Belcher · License #KY 211662
Source:
Crexi
Added: Mar 10
Changed: Aug 11
Last Checked: Aug 10 at 3:47PM
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 Triple Crown Realty Group
Investment Insights
Based on property information with market context.
This 40,000 square foot industrial building is zoned I-2 and features a full sprinkler system and heating. The building offers a 21-foot clear height, four 14-foot overhead doors, three loading docks, and one drive-in door. It is equipped with 1,000 amps of power. The property is suitable for manufacturing, warehousing, or distribution. A new roof and insulation are planned for completion in 2025.
Key Highlights
- New roof and insulation (completed in 2025)
- 40,000 SF industrial building zoned I‑2
- Benefit from 21’ clear height
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
$225,281
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
8.66%
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%
$4,505,620
$4.5M
Cap Rate 7%
$3,218,300
$3.2M
Cap Rate 9%
$2,503,122
$2.5M
Market Conditions
NOI Build-Up for 40,000 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
$278.4K $6.96/SF
− Vacancy
−$13.4K −$0.33/SF
EGI
$265.0K $6.63/SF
− OpEx
−$39.8K −$0.99/SF
NOI
$225.3K $5.63/SF
Area
Daviess County, KY
Vacancy
4.80%
Lease Rate
$6.96 /SF/Yr
Expense Ratio
15.00%
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%
$4,505,620
Cap Rate 7%
$3,218,300
Cap Rate 9%
$2,503,122
Alternative Uses
Best Use
Warehouse
$3.22M
$2.82M – $3.75M
NOI $225,281 @ 7.0% cap · market cap 8.66%
Second Best
Industrial
$2.50M
$2.19M – $2.92M
NOI $175,190 @ 7.0% cap · market cap 6.74%
Theoretical Best
Specialty Retail
$7.16M
$6.27M – $8.36M
NOI $501,415 @ 7.0% cap · market cap 19.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,464
Businesses Nearby
Explore this area
Business Placement
Demographics for 42301, KY
44,883
Population
19,833
Households
2.3
Avg Household Size
39
Median Age
26%
College-Educated
91%
High-School Grad
173.0 sq mi
ZIP Area
259
Density / Sq Mi
$62,010
Median Household Income
$37,305
Median Earnings
$883
Median Rent
$180,600
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Industrial building suitable for manufacturing, warehousing, or distribution.
Where is this industrial property located?
The property is located at 1620 W 7th St Owensboro, KY.
What is the asking price?
The asking price for this property is $2,600,000.
What are key features of this property?
This property features: New roof and insulation (completed in 2025); 40,000 SF industrial building zoned I‑2; Benefit from **21’ clear height**
