Renovated Mixed-Use
For Sale
$779,900
38 Public Square, Somerset, KY 42501
COMMERCIAL - Somerset, KY
Property Size5,000 SF
Price / SF$155.98
Days on Market301
Property Features for 38 Public Square
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
R-1C
Zoning description
22
Security features
Security System
Subdivision
Somerset City
Directions
East Mt. Vernon Street to Public square, building is to the left of Citizens National Bank
Standard status
Active
APN
061-7-1-03
Size
5,000 SF
Utilities
Utilities
Water Available
Sewer type
Public Sewer
Heating system
Heat Pump (Heating), Natural Gas, Zoned
Cooling system
Heat Pump, Ceiling Fan(s), Multi Units, Gas (Cooling)
Amenities
elevator lift
ADA-compliant restrooms
full kitchenette
Building Details
Year built
1920
Floors in Building
2
Building materials
Brick
Roof type
Rubber
Listing Agency:
CENTURY 21 Advantage Realty
(606) 451-1021
Listed By:
Kathy Price Sears · License #192818
(606) 875-2120
Added: Nov 3, 2025
Changed: Aug 14
Last Checked: Aug 31 at 10:06AM
MLS# 25505433
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 5,000-square-foot, two-story mixed-use building at 38 Public Square combines brick construction with extensive updates, including new HVAC, electrical and lighting systems, plumbing, roofing, flooring, and exterior paint. The property also includes an elevator lift, ADA-compliant restrooms, public sewer, and water availability. Zoned R-1C, it offers a renovated interior suited to a range of commercial configurations.
Two separate entrances create a practical division between areas of the building. The second floor includes a kitchenette with a 3-compartment sink and grease trap, while hardwood flooring is installed upstairs. Located directly on the public square in downtown Somerset, the property is positioned in the center of town and near annual city festivals. Built in 1920, the building provides approximately 5,000 square feet across two levels.
Two separate entrances create a practical division between areas of the building. The second floor includes a kitchenette with a 3-compartment sink and grease trap, while hardwood flooring is installed upstairs. Located directly on the public square in downtown Somerset, the property is positioned in the center of town and near annual city festivals. Built in 1920, the building provides approximately 5,000 square feet across two levels.
Key Highlights
- 5,000 square feet across two stories
- Directly on 38 Public Square in downtown Somerset
- Two separate entrances support divided occupancy
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
$56,997
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
7.31%
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%
$1,139,940
$1.1M
Cap Rate 7%
$814,243
$814.2K
Cap Rate 9%
$633,300
$633.3K
Market Conditions
NOI Build-Up for 5,000 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
$85.8K $17.16/SF
− Vacancy
−$4.4K −$0.88/SF
EGI
$81.4K $16.28/SF
− OpEx
−$24.4K −$4.89/SF
NOI
$57.0K $11.40/SF
Area
Pulaski County, KY
Vacancy
5.10%
Lease Rate
$17.16 /SF/Yr
Expense Ratio
30.00%
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%
$1,139,940
Cap Rate 7%
$814,243
Cap Rate 9%
$633,300
Alternative Uses
Best Use
Retail
$814.2K
$712.5K – $950.0K
NOI $56,997 @ 7.0% cap · market cap 7.31%
Second Best
Mixed Use
$609.4K
$533.2K – $710.9K
NOI $42,656 @ 7.0% cap · market cap 5.47%
Theoretical Best
Specialty Retail
$851.8K
$745.4K – $993.8K
NOI $59,628 @ 7.0% cap · market cap 7.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Grease trap
Location Intelligence
Trade Area within ½ mile
725
Businesses Nearby
2k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
FedEx Office Print & Ship Center
Shops & Services
1,649 visits/mo
0.1 miles
Demographics for 42501, KY
18,047
Population
8,039
Households
2.2
Avg Household Size
43
Median Age
17%
College-Educated
84%
High-School Grad
199.7 sq mi
ZIP Area
90
Density / Sq Mi
$49,449
Median Household Income
$38,121
Median Earnings
$808
Median Rent
$131,400
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?
Mixed-use property - Brick construction, dual entrances, updated systems, and an elevator lift support flexible commercial use.
Where is this mixed-use property located?
The property is located at 38 Public Square Somerset, KY.
What is the asking price?
The asking price for this property is $779,900.
What are key features of this property?
This property features: 5,000 square feet across two stories; Directly on 38 Public Square in downtown Somerset; Two separate entrances support divided occupancy
