Six-Unit Apartment
For Sale
$475,000
1721 Tempest Way, Louisville, KY 40216
Fully occupied property with one-bedroom units, washer/dryer hookups, and separate LG&E metering.
Property Size4,100 SF
Price / SF$115.85
Days on Market9
Property Features for 1721 Tempest Way
General Information
Standard status
Active
Size
4,100 SF
Property subtype
Multi-Family
Occupancy
100%
Units
Unit Mix
6 x 1BR/1BA
Multifamily Units
6
Amenities
washer/dryer hookups
Building Details
Year Built
1966
Buildings
1
Listing Agency:
United Real Estate Louisville
(812) 686-3268
Listed By:
Key Associates Signature Realty
(812) 686-3268
Source:
Keyassociates
Added: Aug 21
Changed: Aug 28
Last Checked: Aug 28 at 10:14AM
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 United Real Estate Louisville
Investment Insights
Based on property information with market context.
This 4,100-square-foot apartment property contains six one-bedroom units, each with one full bathroom and washer/dryer hookups. The building dates to 1966 and has been updated with vinyl plank flooring throughout the units. Separate LG&E metering serves each unit, while water and trash service are paid by the owner.
The property is fully occupied and includes practical features suited to multifamily operations. Its six-unit configuration provides a consistent residential layout, with identical bedroom and bathroom counts across the units. Located in Louisville, Kentucky, the building offers a straightforward apartment format with separately metered electric service and established unit improvements.
The property is fully occupied and includes practical features suited to multifamily operations. Its six-unit configuration provides a consistent residential layout, with identical bedroom and bathroom counts across the units. Located in Louisville, Kentucky, the building offers a straightforward apartment format with separately metered electric service and established unit improvements.
Key Highlights
- Six one‑bedroom apartment units
- 4,100 square feet of property area
- Each unit includes 1 full bathroom
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
$37,140
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
7.82%
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%
$742,800
$742.8K
Cap Rate 7%
$530,571
$530.6K
Cap Rate 9%
$412,667
$412.7K
Market Conditions
NOI Build-Up for 4,100 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
$73.8K $18.00/SF
− Vacancy
−$6.3K −$1.53/SF
EGI
$67.5K $16.47/SF
− OpEx
−$30.4K −$7.41/SF
NOI
$37.1K $9.06/SF
Area
ZIP 40216
Vacancy
8.50%
Lease Rate
$18.00 /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%
$742,800
Cap Rate 7%
$530,571
Cap Rate 9%
$412,667
Alternative Uses
Best Use
Apartment 5plus
$530.6K
$464.3K – $619.0K
NOI $37,140 @ 7.0% cap · market cap 7.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.05M
$920.0K – $1.23M
NOI $73,603 @ 7.0% cap · market cap 15.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
6
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
644
Businesses Nearby
Explore this area
Business Placement
Demographics for 40216, KY
43,434
Population
19,257
Households
2.3
Avg Household Size
40
Median Age
14%
College-Educated
87%
High-School Grad
15.7 sq mi
ZIP Area
2,766
Density / Sq Mi
$50,211
Median Household Income
$35,503
Median Earnings
$883
Median Rent
$154,500
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?
Apartment building - Fully occupied property with one-bedroom units, washer/dryer hookups, and separate LG&E metering.
Where is this apartment building located?
The property is located at 1721 Tempest Way Louisville, KY.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: Six one‑bedroom apartment units; 4,100 square feet of property area; Each unit includes 1 full bathroom
