Six-Unit Townhouse-Style Apartment
New
For Sale
$577,000
1721 Hill Rise Dr, Lexington, KY 40504
The property includes five townhouse-style residences and one apartment on the lower level.
Property Size6,612 SF
Price / SF$87.27
Days on Market5
Property Features for 1721 Hill Rise Dr
General Information
Standard status
Active
Size
6,612 SF
Property subtype
Multifamily
Zoning
R-3
Additional Details
Multifamily Units
6
Amenities
Power
Water
Sewer
Natural Gas
Building Details
Year Built
1977
Listing Agency:
Schrader Commercial Properties, LLC
Listed By:
James Schrader · License #41930
(859) 288-5008
Source:
Kcrea.resimplifi
Added: Sep 11
Changed: Sep 14
Last Checked: Sep 15 at 5:45AM
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 Schrader Commercial Properties, LLC
Investment Insights
Based on property information with market context.
This 6,612-square-foot apartment property contains five townhouse-style units along with a separate lower-level apartment, creating a six-unit configuration. The building was constructed in 1977 and occupies a corner lot at 1721 Hill Rise Dr in Lexington, Kentucky.
The property is zoned R-3. A majority of the current occupants have remained in place for an extended period, providing established tenancy within the existing multifamily setup.
The property is zoned R-3. A majority of the current occupants have remained in place for an extended period, providing established tenancy within the existing multifamily setup.
Key Highlights
- Six‑unit apartment property with five townhouse‑style units and one lower‑level apartment
- 6,612 SF building constructed in 1977
- R‑3 zoning
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
$49,832
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
8.64%
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%
$996,640
$996.6K
Cap Rate 7%
$711,886
$711.9K
Cap Rate 9%
$553,689
$553.7K
Market Conditions
NOI Build-Up for 6,612 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
$96.8K $14.64/SF
− Vacancy
−$6.2K −$0.94/SF
EGI
$90.6K $13.70/SF
− OpEx
−$40.8K −$6.17/SF
NOI
$49.8K $7.54/SF
Area
Lexington, KY
Vacancy
6.40%
Lease Rate
$14.64 /SF/Yr
Expense Ratio
45.00%
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%
$996,640
Cap Rate 7%
$711,886
Cap Rate 9%
$553,689
Alternative Uses
Best Use
Apartment 5plus
$711.9K
$622.9K – $830.5K
NOI $49,832 @ 7.0% cap · market cap 8.64%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.38M
$1.21M – $1.61M
NOI $96,432 @ 7.0% cap · market cap 16.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
6
Residential units
Location Intelligence
Trade Area within ½ mile
318
Businesses Nearby
Explore this area
Business Placement
Demographics for 40504, KY
26,042
Population
13,175
Households
2
Avg Household Size
34
Median Age
32%
College-Educated
84%
High-School Grad
6.2 sq mi
ZIP Area
4,200
Density / Sq Mi
$43,015
Median Household Income
$29,195
Median Earnings
$888
Median Rent
$209,400
Median Home Value
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Apartment building - The property includes five townhouse-style residences and one apartment on the lower level.
Where is this apartment building located?
The property is located at 1721 Hill Rise Dr Lexington, KY.
What is the asking price?
The asking price for this property is $577,000.
What are key features of this property?
This property features: Six‑unit apartment property with five townhouse‑style units and one lower‑level apartment; 6,612 SF building constructed in 1977; R‑3 zoning
