Four-Unit Apartment
For Sale
$775,000
Pending
1640 Nicholasville Rd, Lexington, KY 40503
Four residential units occupy the top floor of a professional office building with shared laundry and paved onsite parking.
Property Size4,097 SF
Days on Market148
Property Features for 1640 Nicholasville Rd
General Information
Standard status
Pending
Size
4,097 SF
Property subtype
Multi-Family
Building Details
Year Built
1985
Listing Agency:
Keller Williams Commonwealth
(502) 542-8041
Listed By:
Jon Bentley
Source:
Centralkentuckyhouses
Added: Apr 7
Changed: Aug 31
Last Checked: Aug 29 at 10:35AM
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 Keller Williams Commonwealth
Investment Insights
Based on property information with market context.
This multifamily property comprises four residential units on the third floor of a professional office building. Each unit offers two bedrooms, two full bathrooms, a spacious living room, and a kitchen with substantial cabinet storage. Updated interiors and a shared laundry area with coin-operated machines serve the residences, while elevator and stair access provide entry to the floor. The offering includes the four top-floor condos only, not the entire office building.
The property is located next to Central Baptist Hospital and just over a mile from the University of Kentucky in Lexington. An onsite paved parking lot provides parking for occupants, complementing the building’s elevator and stair access. Constructed in 1985, the asset combines residential units with a professional office setting and shared building amenities.
The property is located next to Central Baptist Hospital and just over a mile from the University of Kentucky in Lexington. An onsite paved parking lot provides parking for occupants, complementing the building’s elevator and stair access. Constructed in 1985, the asset combines residential units with a professional office setting and shared building amenities.
Key Highlights
- Four residential units, each with 2 bedrooms and 2 full baths
- All units are located on the third floor of a professional office building
- Updated interiors with spacious living rooms and kitchens with cabinet storage
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
$44,248
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
5.71%
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%
$884,960
$885.0K
Cap Rate 7%
$632,114
$632.1K
Cap Rate 9%
$491,644
$491.6K
Market Conditions
NOI Build-Up for 4,097 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
$78.7K $19.20/SF
− Vacancy
−$7.9K −$1.92/SF
EGI
$70.8K $17.28/SF
− OpEx
−$26.5K −$6.48/SF
NOI
$44.2K $10.80/SF
Area
ZIP 40503
Vacancy
10.00%
Lease Rate
$19.20 /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%
$884,960
Cap Rate 7%
$632,114
Cap Rate 9%
$491,644
Alternative Uses
Best Use
Mixed Use
$632.1K
$553.1K – $737.5K
NOI $44,248 @ 7.0% cap · market cap 5.71%
Second Best
Apartment 5plus
$391.4K
$342.5K – $456.7K
NOI $27,401 @ 7.0% cap · market cap 3.54%
Theoretical Best
Office A
$853.6K
$746.9K – $995.9K
NOI $59,752 @ 7.0% cap · market cap 7.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,088
Businesses Nearby
Explore this area
Business Placement
Demographics for 40503, KY
28,073
Population
13,437
Households
2.1
Avg Household Size
39
Median Age
57%
College-Educated
96%
High-School Grad
8.8 sq mi
ZIP Area
3,190
Density / Sq Mi
$74,161
Median Household Income
$43,061
Median Earnings
$1,110
Median Rent
$280,000
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Multifamily property - Four residential units occupy the top floor of a professional office building with shared laundry and paved onsite parking.
Where is this multifamily property located?
The property is located at 1640 Nicholasville Rd Lexington, KY.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: Four residential units, each with 2 bedrooms and 2 full baths; All units are located on the third floor of a professional office building; Updated interiors with spacious living rooms and kitchens with cabinet storage
