Single-Tenant Medical
New
For Sale
$820,000
2339 Sterlington Rd, Lexington, KY 40517
Commercial Sale, Lexington, KY
Property Size4,664 SF
Price / SF$175.81
Days on Market6
Property Features for 2339 Sterlington Rd
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Subdivision
TATES CREEK
Standard status
Active
APN
38089120
Size
4,664 SF
Amenities
security system
Building Details
Year built
2002
Floors in Building
1
Listing Agency:
Schrader Commercial Properties Llc
Listed By:
James Schrader · License #41930
(859) 288-5008
Added: Sep 14
Changed: Sep 17
Last Checked: Sep 19 at 12:06AM
MLS# 11979560
Copyright © 2026 My State MLS. 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 4,664-square-foot office condominium is configured as a single-tenant medical office on the first floor. Built in 2002, the property includes four bathrooms and an installed security system with key-fob entry. The space is 100% leased to Sun Behavioral Health.
The property is positioned within a professional park near the intersection of Alumni Drive and New Circle Road, with convenient access from both roads and close proximity to Man O' War Boulevard. The Sterlington Road corridor includes UK HealthCare, Alumni Dental Center, and Larry Kopczyk, DMD.
The property is positioned within a professional park near the intersection of Alumni Drive and New Circle Road, with convenient access from both roads and close proximity to Man O' War Boulevard. The Sterlington Road corridor includes UK HealthCare, Alumni Dental Center, and Larry Kopczyk, DMD.
Key Highlights
- 4,664‑square‑foot single‑tenant office condominium
- 100% leased to Sun Behavioral Health
- Medical‑office configuration on the first floor
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
$58,296
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
7.11%
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%
$1,165,920
$1.2M
Cap Rate 7%
$832,800
$832.8K
Cap Rate 9%
$647,733
$647.7K
Market Conditions
NOI Build-Up for 4,664 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
$89.5K $19.20/SF
− Vacancy
−$11.8K −$2.53/SF
EGI
$77.7K $16.67/SF
− OpEx
−$19.4K −$4.17/SF
NOI
$58.3K $12.50/SF
Area
ZIP 40517
Vacancy
13.20%
Lease Rate
$19.20 /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%
$1,165,920
Cap Rate 7%
$832,800
Cap Rate 9%
$647,733
Alternative Uses
Best Use
Office B
$832.8K
$728.7K – $971.6K
NOI $58,296 @ 7.0% cap · market cap 7.11%
Second Best
Healthcare Medical
$794.4K
$695.1K – $926.8K
NOI $55,610 @ 7.0% cap · market cap 6.78%
Theoretical Best
Office A
$967.1K
$846.2K – $1.13M
NOI $67,699 @ 7.0% cap · market cap 8.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Office units
100%
Occupancy
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
500
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 40517, KY
37,751
Population
18,306
Households
2.1
Avg Household Size
33
Median Age
41%
College-Educated
92%
High-School Grad
6.2 sq mi
ZIP Area
6,089
Density / Sq Mi
$51,778
Median Household Income
$35,010
Median Earnings
$1,092
Median Rent
$196,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Office in South region
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Frequently Asked Questions
What type of property is this?
Medical Office Space - First-floor office condominium with medical-office improvements, four bathrooms, and key-fob security in a professional park setting.
Where is this medical office space located?
The property is located at 2339 Sterlington Rd Lexington, KY.
What is the asking price?
The asking price for this property is $820,000.
What are key features of this property?
This property features: 4,664‑square‑foot single‑tenant office condominium; 100% leased to Sun Behavioral Health; Medical‑office configuration on the first floor
