Three-Suite Medical Office
New
For Sale
$1,140,000
3229 Summit Square Place, Lexington, KY 40509
The ground-level layout accommodates medical, professional office, and service-oriented uses.
Property Size6,190 SF
Days on Market3
Property Features for 3229 Summit Square Place
General Information
Standard status
Active
Size
6,190 SF
Class
B
Property subtype
Office
Building Details
Building Size
6,190 SF
Year Built
2004
Listed By:
Bruce Isaac, SIOR, CCIM · License #KY #182312
(859) 221-4438
Source:
Naiglobal
Added: Sep 30
Last Checked: Oct 1 at 8:16AM
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 Bruce Isaac, SIOR, CCIM
Investment Insights
Based on property information with market context.
This 6,190 SF medical office condominium occupies the first floor and is arranged as three suites: 100, 130, and 150. The building dates to 2004. The configuration supports medical, professional office, and other service-oriented uses. The seller prefers a leaseback of Suite 100, comprising 1,977 SF, for approximately two years, subject to buyer acceptance.
The property is just off Richmond Road in Lexington, with proximity to I-75 and I-64. Medical services, shopping, and residential neighborhoods are nearby. The condominium association fee covers exterior maintenance, exterior liability insurance, trash and snow removal, lawn care, window replacement, roof work, and exterior painting.
The property is just off Richmond Road in Lexington, with proximity to I-75 and I-64. Medical services, shopping, and residential neighborhoods are nearby. The condominium association fee covers exterior maintenance, exterior liability insurance, trash and snow removal, lawn care, window replacement, roof work, and exterior painting.
Key Highlights
- 6,190 SF first‑floor medical office condominium
- Three suites: 100, 130, and 150
- Seller prefers a leaseback of Suite 100 (1,977 SF) for approximately 2 years, subject to buyer acceptance
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
$77,263
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
6.78%
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%
$1,545,260
$1.5M
Cap Rate 7%
$1,103,757
$1.1M
Cap Rate 9%
$858,478
$858.5K
Market Conditions
NOI Build-Up for 6,190 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
$118.8K $19.20/SF
− Vacancy
−$15.8K −$2.56/SF
EGI
$103.0K $16.64/SF
− OpEx
−$25.8K −$4.16/SF
NOI
$77.3K $12.48/SF
Area
ZIP 40509
Vacancy
13.32%
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%
$1,545,260
Cap Rate 7%
$1,103,757
Cap Rate 9%
$858,478
Alternative Uses
Best Use
Office B
$1.10M
$965.8K – $1.29M
NOI $77,263 @ 7.0% cap · market cap 6.78%
Second Best
Healthcare Medical
$927.0K
$811.1K – $1.08M
NOI $64,891 @ 7.0% cap · market cap 5.69%
Theoretical Best
Office A
$1.29M
$1.13M – $1.50M
NOI $90,277 @ 7.0% cap · market cap 7.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,138
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 40509, KY
44,572
Population
19,802
Households
2.3
Avg Household Size
36
Median Age
57%
College-Educated
95%
High-School Grad
47.8 sq mi
ZIP Area
932
Density / Sq Mi
$89,429
Median Household Income
$52,489
Median Earnings
$1,317
Median Rent
$338,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Richmond Road Veterinary Clinic — 3270 Richmond Rd, Lexington, KY 40509
- Kevin Smith — 3270 Richmond Rd, Lexington, KY 405091811
- Blue Paw Primary Pet Care — 3101 Richmond Rd Ste 306, Lexington, KY 40509
- PetVet365 Pet Hospital Lexington/Richmond Rd — 2870 Richmond Rd Suite 160 and 170, Lexington, KY 40509
Frequently Asked Questions
What type of property is this?
Medical Office Space - The ground-level layout accommodates medical, professional office, and service-oriented uses.
Where is this medical office space located?
The property is located at 3229 Summit Square Place Lexington, KY.
What is the asking price?
The asking price for this property is $1,140,000.
What are key features of this property?
This property features: 6,190 SF first‑floor medical office condominium; Three suites: 100, 130, and 150; Seller prefers a leaseback of Suite 100 (1,977 SF) for approximately 2 years, subject to buyer acceptance
