Multi-Building Flex
For Sale
Contact for pricing
1647 South Highway 27, Somerset, KY 42501
Highway-oriented commercial property combining industrial, warehouse, garage, and retail improvements across multiple structures.
Property Size46,800 SF
Lot Size9.00 Acres
Price / SF$68.38
Days on Market11
Property Features for 1647 South Highway 27
General Information
Standard status
Active
Size
46,800 SF
Lot size
9.00 Acres
Property subtype
Industrial, Mixed Use, Retail
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Buildings
5
Tenancy
Multi
Construction
solid masonry, metal
Listing Agency:
Weichert Commercial Brokerage Inc
(606) 271-1691
Listed By:
Matt Ford · License #KY 200610
Source:
Crexi
Added: Aug 21
Changed: Aug 30
Last Checked: Aug 30 at 10:38PM
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 Weichert Commercial Brokerage Inc
Investment Insights
Based on property information with market context.
This flex space property comprises approximately 46,800 square feet of finished building area across several structures on approximately 9 acres. Improvements include a 21,200-square-foot solid-masonry industrial building, an 11,000-square-foot metal commercial building, a 6,600-square-foot retail and sales building constructed in 2004, a 4,000-square-foot commercial building, and a 4,000-square-foot metal garage. The buildings feature slab foundations and gable-style roofs, with heating provided by heat pump and gas systems. Several structures also contain office or restroom areas.
The property fronts Highway 27 in Somerset, Kentucky, providing a substantial commercial and industrial footprint along a major corridor. The combination of finished buildings and acreage supports a range of existing operational configurations, including manufacturing, warehousing, retail, equipment storage, distribution, automotive, and general business uses, subject to verification of zoning and permitted uses.
The property fronts Highway 27 in Somerset, Kentucky, providing a substantial commercial and industrial footprint along a major corridor. The combination of finished buildings and acreage supports a range of existing operational configurations, including manufacturing, warehousing, retail, equipment storage, distribution, automotive, and general business uses, subject to verification of zoning and permitted uses.
Key Highlights
- Approximately 9 acres with Highway 27 frontage
- Approximately 46,800 SF of finished building space
- 21,200 SF solid‑masonry industrial building
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
$275,838
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
8.62%
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%
$5,516,760
$5.5M
Cap Rate 7%
$3,940,543
$3.9M
Cap Rate 9%
$3,064,867
$3.1M
Market Conditions
NOI Build-Up for 46,800 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
$348.2K $7.44/SF
− Vacancy
−$23.7K −$0.51/SF
EGI
$324.5K $6.93/SF
− OpEx
−$48.7K −$1.04/SF
NOI
$275.8K $5.89/SF
Area
Pulaski County, KY
Vacancy
6.80%
Lease Rate
$7.44 /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%
$5,516,760
Cap Rate 7%
$3,940,543
Cap Rate 9%
$3,064,867
Alternative Uses
Best Use
Retail
$7.62M
$6.67M – $8.89M
NOI $533,491 @ 7.0% cap · market cap 16.67%
Second Best
Flex RnD
$4.78M
$4.18M – $5.58M
NOI $334,742 @ 7.0% cap · market cap 10.46%
Theoretical Best
Specialty Retail
$7.97M
$6.98M – $9.30M
NOI $558,117 @ 7.0% cap · market cap 17.44%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
373
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 42501, KY
18,047
Population
8,039
Households
2.2
Avg Household Size
43
Median Age
17%
College-Educated
84%
High-School Grad
199.7 sq mi
ZIP Area
90
Density / Sq Mi
$49,449
Median Household Income
$38,121
Median Earnings
$808
Median Rent
$131,400
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Highway-oriented commercial property combining industrial, warehouse, garage, and retail improvements across multiple structures.
Where is this flex space located?
The property is located at 1647 South Highway 27 Somerset, KY.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: Approximately 9 acres with Highway 27 frontage; Approximately 46,800 SF of finished building space; 21,200 SF solid‑masonry industrial building
