Licensed Rehabilitation
For Sale
$6,000,000
3100 W 2nd St, Owensboro, KY 42301
Room-based behavioral health facility with private bathrooms, group spaces, and a commercial kitchen.
Property Size80,000 SF
Price / SF$75
Days on Market17
Property Features for 3100 W 2nd St
General Information
Standard status
Active
Size
80,000 SF
Total Parking Spaces
189
Property subtype
Hospitality
Zoning
B-4
Amenities
central common area
private bathrooms
pharmacy area
classroom-sized spaces
offices
natural light
commercial kitchen
walk-in refrigerators and freezers
basketball court
volleyball court
189 Parking Spaces
Listing Agency:
FJR Commercial
(502) 892-0228
Listed By:
Brian Forrest · License #204818
(502) 892-0228
Source:
Kcrea.resimplifi
Added: Aug 16
Changed: Aug 31
Last Checked: Aug 31 at 12:38PM
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 FJR Commercial
Investment Insights
Based on property information with market context.
This 80,000-square-foot rehabilitation facility is licensed for 300 occupants and occupies a former hotel configuration. The renovated interior includes private client and staff rooms with bathrooms, a central common area, multiple classroom-sized rooms, and offices in varied sizes. A pharmacy area with furnishings and walk-up windows is also in place. Natural light reaches the building’s wings, while existing furniture and fixtures support continued residential or behavioral health operations.
A commercial kitchen provides large-scale meal service and includes multiple walk-in refrigerators and freezers. Dedicated basketball and volleyball courts provide indoor and outdoor recreation options. The property is zoned B-4 and offers access to major regional roadways in Owensboro, Kentucky. Its room-based layout and shared gathering areas also support potential hospitality, senior living, assisted living, or workforce housing conversion, as identified in the property information.
A commercial kitchen provides large-scale meal service and includes multiple walk-in refrigerators and freezers. Dedicated basketball and volleyball courts provide indoor and outdoor recreation options. The property is zoned B-4 and offers access to major regional roadways in Owensboro, Kentucky. Its room-based layout and shared gathering areas also support potential hospitality, senior living, assisted living, or workforce housing conversion, as identified in the property information.
Key Highlights
- 80,000 SF rehabilitation facility licensed for 300 occupants
- Renovated former hotel layout with private bathrooms in client and staff rooms
- Central common area, classroom‑sized rooms, offices, and pharmacy area
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
$498,750
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
8.31%
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%
$9,975,000
$10.0M
Cap Rate 7%
$7,125,000
$7.1M
Cap Rate 9%
$5,541,667
$5.5M
Market Conditions
NOI Build-Up for 80,000 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
$1.20M $15.00/SF
− Vacancy
−$150.0K −$1.88/SF
EGI
$1.05M $13.13/SF
− OpEx
−$551.3K −$6.89/SF
NOI
$498.8K $6.23/SF
Area
Daviess County, KY
Vacancy
12.50%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
52.50%
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%
$9,975,000
Cap Rate 7%
$7,125,000
Cap Rate 9%
$5,541,667
Alternative Uses
Best Use
Healthcare Medical
$10.75M
$9.41M – $12.54M
NOI $752,486 @ 7.0% cap · market cap 12.54%
Second Best
Hotel Hospitality
$7.12M
$6.23M – $8.31M
NOI $498,750 @ 7.0% cap · market cap 8.31%
Theoretical Best
Specialty Retail
$14.33M
$12.54M – $16.71M
NOI $1,002,830 @ 7.0% cap · market cap 16.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
189
Businesses Nearby
Explore this area
Business Placement
Demographics for 42301, KY
44,883
Population
19,833
Households
2.3
Avg Household Size
39
Median Age
26%
College-Educated
91%
High-School Grad
173.0 sq mi
ZIP Area
259
Density / Sq Mi
$62,010
Median Household Income
$37,305
Median Earnings
$883
Median Rent
$180,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Rehabilitation center - Room-based behavioral health facility with private bathrooms, group spaces, and a commercial kitchen.
Where is this rehabilitation center located?
The property is located at 3100 W 2nd St Owensboro, KY.
What is the asking price?
The asking price for this property is $6,000,000.
What are key features of this property?
This property features: 80,000 SF rehabilitation facility licensed for 300 occupants; Renovated former hotel layout with private bathrooms in client and staff rooms; Central common area, classroom‑sized rooms, offices, and pharmacy area
