Mixed-Use Retail and Apartment
For Sale
$1,150,000
3314 Preston Hwy, Louisville, KY 40213
Two retail tenants complement two currently rented apartments in a single income-producing property.
Property Size5,700 SF
Price / SF$201.75
Days on Market316
Property Features for 3314 Preston Hwy
General Information
Standard status
Active
Size
5,700 SF
Total Parking Spaces
23
Property subtype
Retail
Additional Details
Multifamily Units
2
Amenities
23 Parking Spaces
Building Details
Year Built
2004
Tenancy
Multi
Listing Agency:
Hoagland Commercial Realtors
(502) 664-5277
Listed By:
Zachary Swanson · License #76272
(502) 664-5277
Source:
Kcrea.resimplifi
Added: Oct 20, 2025
Changed: Aug 30
Last Checked: Aug 30 at 6:44PM
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 Hoagland Commercial Realtors
Investment Insights
Based on property information with market context.
This mixed-use property combines 5,700 square feet of retail and multifamily space in a building constructed in 2004. The commercial component includes two retail tenants, Subway and Kentucky Paquet, while two apartments are currently rented.
The property is located at 3314 Preston Hwy in Louisville, Kentucky, near Louisville Airport and the Convention Center. Its combination of retail occupancy and residential units creates a four-tenant configuration within one commercial property.
The property is located at 3314 Preston Hwy in Louisville, Kentucky, near Louisville Airport and the Convention Center. Its combination of retail occupancy and residential units creates a four-tenant configuration within one commercial property.
Key Highlights
- 5,700‑square‑foot mixed‑use property
- Two retail tenants: Subway and Kentucky Paquet
- Two apartments currently rented
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
$67,716
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
5.89%
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%
$1,354,320
$1.4M
Cap Rate 7%
$967,371
$967.4K
Cap Rate 9%
$752,400
$752.4K
Market Conditions
NOI Build-Up for 5,700 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
$123.1K $21.60/SF
− Vacancy
−$14.8K −$2.59/SF
EGI
$108.3K $19.01/SF
− OpEx
−$40.6K −$7.13/SF
NOI
$67.7K $11.88/SF
Area
Louisville, KY
Vacancy
12.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,354,320
Cap Rate 7%
$967,371
Cap Rate 9%
$752,400
Alternative Uses
Best Use
Mixed Use
$967.4K
$846.5K – $1.13M
NOI $67,716 @ 7.0% cap · market cap 5.89%
Second Best
Retail
$938.8K
$821.4K – $1.10M
NOI $65,715 @ 7.0% cap · market cap 5.71%
Theoretical Best
Office A
$1.48M
$1.29M – $1.72M
NOI $103,421 @ 7.0% cap · market cap 8.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
402
Businesses Nearby
135k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 39%
Dining 34%
Groceries 16%
Home Improvements & Furnishings 8%
McDonald's
Dining
26,862 visits/mo
0.3 miles
Aldi
Groceries
21,890 visits/mo
0.5 miles
Thorntons
Shops & Services
20,895 visits/mo
0.1 miles
Dollar Tree
Shops & Services
14,532 visits/mo
0.5 miles
Floor & Decor
Home Improvements & Furnishings
7,577 visits/mo
0.4 miles
Demographics for 40213, KY
16,698
Population
7,730
Households
2.2
Avg Household Size
38
Median Age
25%
College-Educated
90%
High-School Grad
9.6 sq mi
ZIP Area
1,739
Density / Sq Mi
$60,734
Median Household Income
$38,595
Median Earnings
$952
Median Rent
$169,000
Median Home Value
Market
Vacancy Rate% for Retail in Louisville, KY
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two retail tenants complement two currently rented apartments in a single income-producing property.
Where is this mixed-use property located?
The property is located at 3314 Preston Hwy Louisville, KY.
What is the asking price?
The asking price for this property is $1,150,000.
What are key features of this property?
This property features: 5,700‑square‑foot mixed‑use property; Two retail tenants: Subway and Kentucky Paquet; Two apartments currently rented
