Sprinklered Bar and Nightclub
For Sale
$925,000
Pending
208 S Limestone, Lexington, KY 40508
COMMERCIAL - Lexington, KY
Property Size4,624 SF
Lot Size0.08 Acres
Days on Market99
Property Features for 208 S Limestone
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
B-2B - DOWNTOWN CENTER BUSINESS
Subdivision
Downtown
Directions
Located at the corner of South Limestone and High Street, between Maxwell St and High ST
Standard status
Pending
APN
17126400
Size
4,624 SF
Lot size
0.08 Acres
Utilities
Utilities
Cable Available
Sewer type
Public Sewer
Heating system
Heat Pump (Heating), Electric (Heating)
Cooling system
Multi Units, Heat Pump, Central Air
Building Details
Year built
1940
Floors in Building
2
Building materials
Brick
Roof type
Flat
Listing Agency:
Ky Custom Homes Real Estate
(859) 379-9564
Listed By:
David L Jones · License #282642
(859) 312-7333
Added: Apr 30
Changed: Aug 4
Last Checked: Aug 6 at 5:06PM
MLS# 26009467
Copyright © 2026 ImagineMLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This fully sprinklered commercial building has been operated for more than 13 years as a nightclub/bar and is described as well maintained. The property includes ample electric service, a tankless gas water heater, and a large two-story patio area. Restroom facilities include four total public restrooms and one private staff restroom, and the building is described as having two fully plumbed bar areas, one per floor. The building provides space for a total occupancy of 392, and square footage is reported as 4,624 per PVA and 4,692 per appraisal. It is being sold as-is.
The property has been used as a retail business most recently, and it is served by privately owned parking lot space around the building with monthly, daily, and hourly paid parking available. Zoning is listed as B-2-B, which allows a broad range of uses including residential apartment/condo-type uses.
Additional details include that the liquor license status, if any, is not provided in the remarks, and no further tenant or lease information is included in the listing materials.
The property has been used as a retail business most recently, and it is served by privately owned parking lot space around the building with monthly, daily, and hourly paid parking available. Zoning is listed as B-2-B, which allows a broad range of uses including residential apartment/condo-type uses.
Additional details include that the liquor license status, if any, is not provided in the remarks, and no further tenant or lease information is included in the listing materials.
Key Highlights
- Brick building built in 1940 with flat roof and public sprinkler system
- Electric heating plus heat pump; central air and heat pump cooling
- Public sewer utilities; cable available
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
$51,396
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
5.56%
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%
$1,027,920
$1.0M
Cap Rate 7%
$734,229
$734.2K
Cap Rate 9%
$571,067
$571.1K
Market Conditions
NOI Build-Up for 4,624 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
$72.1K $15.60/SF
− Vacancy
−$3.6K −$0.78/SF
EGI
$68.5K $14.82/SF
− OpEx
−$17.1K −$3.70/SF
NOI
$51.4K $11.11/SF
Area
Lexington, KY
Vacancy
5.00%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
25.00%
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%
$1,027,920
Cap Rate 7%
$734,229
Cap Rate 9%
$571,067
Alternative Uses
Best Use
Specialty Retail
$734.2K
$642.5K – $856.6K
NOI $51,396 @ 7.0% cap · market cap 5.56%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$963.4K
$843.0K – $1.12M
NOI $67,438 @ 7.0% cap · market cap 7.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
3,936
Businesses Nearby
105k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 92%
Shops & Services 8%
Raising Cane's Chicken Fingers
Dining
34,546 visits/mo
0.3 miles
McDonald's
Dining
34,086 visits/mo
0.2 miles
Tropical Smoothie Cafe
Dining
7,333 visits/mo
0.4 miles
Chase Bank
Shops & Services
6,799 visits/mo
0.3 miles
Qdoba Mexican Grill
Dining
6,091 visits/mo
0.4 miles
Demographics for 40508, KY
25,586
Population
11,458
Households
2.2
Avg Household Size
26
Median Age
36%
College-Educated
86%
High-School Grad
4.2 sq mi
ZIP Area
6,092
Density / Sq Mi
$28,040
Median Household Income
$13,316
Median Earnings
$900
Median Rent
$174,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Bar & Pub - Fully sprinklered building features a large two-story patio and multiple public restrooms.
Where is this bar & pub located?
The property is located at 208 S Limestone Lexington, KY.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: Brick building built in 1940 with flat roof and public sprinkler system; Electric heating plus heat pump; central air and heat pump cooling; Public sewer utilities; cable available
