Restaurant and Academy Leased
For Sale
Contact for pricing
3805 7th Street Rd, Louisville, KY 40216
Fully leased commercial property with long-term tenants.
Property Size7,111 SF
Price / SF$210.94
Days on Market182
Property Features for 3805 7th Street Rd
General Information
Standard status
Active
Size
7,111 SF
Property subtype
Retail
Zoning
C1 Commercial
Occupancy
100%
Lease Type
NNN
Net Operating Income
$145,050
Building Details
Year Built
2017
Listing Agency:
Berkshire Hathaway HomeServices Parks & Weisberg, Realtors Louisville
(812) 282-0426
Listed By:
Michael Reetz · License #264934
Source:
Crexi
Added: Feb 25
Changed: Aug 24
Last Checked: Aug 24 at 7:56PM
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 Berkshire Hathaway HomeServices Parks & Weisberg, Realtors Louisville
Investment Insights
Based on property information with market context.
The property, constructed in 2017, presents an investment opportunity with two tenants. Pizza Hut occupies a portion of the building under a lease initiated in 2017 with 9.5 years remaining and includes four 5-year renewal options. The Academy Of Excellence is a new tenant with a 5-year lease extending through 2031, which includes two 3-year renewal options. The property is 100% occupied. The building contains 7,111 square feet.
Key Highlights
- 100% Occupied Commercial Property
- Pizza Hut Lease with 9.5 Years Remaining and Renewal Options
- New Tenant: The Academy Of Excellence with a Lease Through 2031 and Renewal Options
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
$102,270
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
6.82%
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%
$2,045,400
$2.0M
Cap Rate 7%
$1,461,000
$1.5M
Cap Rate 9%
$1,136,333
$1.1M
Market Conditions
NOI Build-Up for 7,111 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
$145.1K $20.40/SF
− Vacancy
−$8.7K −$1.22/SF
EGI
$136.4K $19.18/SF
− OpEx
−$34.1K −$4.79/SF
NOI
$102.3K $14.38/SF
Area
ZIP 40216
Vacancy
6.00%
Lease Rate
$20.40 /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%
$2,045,400
Cap Rate 7%
$1,461,000
Cap Rate 9%
$1,136,333
Alternative Uses
Best Use
Specialty Retail
$1.46M
$1.28M – $1.70M
NOI $102,270 @ 7.0% cap · market cap 6.82%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.82M
$1.60M – $2.13M
NOI $127,657 @ 7.0% cap · market cap 8.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
713
Businesses Nearby
146k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 51%
Dining 34%
Apparel 7%
Home Improvements & Furnishings 5%
Speedway
Shops & Services
15,711 visits/mo
0.2 miles
Dollar Tree
Shops & Services
14,914 visits/mo
0.2 miles
White Castle
Dining
12,458 visits/mo
0.2 miles
Burger King
Dining
11,984 visits/mo
0.2 miles
Krispy Kreme Doughnuts
Dining
11,885 visits/mo
0.2 miles
Demographics for 40216, KY
43,434
Population
19,257
Households
2.3
Avg Household Size
40
Median Age
14%
College-Educated
87%
High-School Grad
15.7 sq mi
ZIP Area
2,766
Density / Sq Mi
$50,211
Median Household Income
$35,503
Median Earnings
$883
Median Rent
$154,500
Median Home Value
Market
Vacancy Rate% for Retail in Louisville, KY
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Fully leased commercial property with long-term tenants.
Where is this conventional restaurant located?
The property is located at 3805 7th Street Rd Louisville, KY.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 100% Occupied Commercial Property; Pizza Hut Lease with 9.5 Years Remaining and Renewal Options; New Tenant: The Academy Of Excellence with a Lease Through 2031 and Renewal Options
