Renovated 8-Unit Apartment
For Sale
$944,900
388 Redding Rd, Lexington, KY 40517
Fully occupied multifamily property with recent exterior and electrical improvements, plus updated interiors in select units.
Property Size7,300 SF
Price / SF$129.44
Days on Market70
Property Features for 388 Redding Rd
General Information
Standard status
Active
Size
7,300 SF
Property subtype
Residential Income
Occupancy
100%
Additional Details
Multifamily Units
8
Listing Agency:
Bluegrass Property Exchange
(859) 396-3267
Listed By:
Iris Todd · License #217832
(859) 396-3267
Source:
Exprealty
Added: Jun 24
Changed: Aug 31
Last Checked: Aug 30 at 8:53PM
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 Bluegrass Property Exchange
Investment Insights
Based on property information with market context.
This 8-unit apartment property at 388 Redding Rd in Lexington, KY contains approximately 7,300 square feet and is fully occupied. Capital work has addressed several major building components, including the roof, gutters, windows, siding, and breaker panels. Interior improvements have also been completed in several apartments, while additional units may offer room for future updating.
All eight apartments are leased on a month-to-month basis, providing flexible lease administration. Five residents are long-term occupants who have indicated an interest in remaining at the property. The combination of current occupancy, recent capital improvements, and varied unit condition provides a clear operating profile for an apartment buyer evaluating the asset.
All eight apartments are leased on a month-to-month basis, providing flexible lease administration. Five residents are long-term occupants who have indicated an interest in remaining at the property. The combination of current occupancy, recent capital improvements, and varied unit condition provides a clear operating profile for an apartment buyer evaluating the asset.
Key Highlights
- 8‑unit apartment building with approximately 7,300 square feet
- 100% occupied with all 8 tenants on month‑to‑month leases
- Recent roof, gutters, windows, siding, and breaker panel improvements
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
$55,733
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
5.90%
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%
$1,114,660
$1.1M
Cap Rate 7%
$796,186
$796.2K
Cap Rate 9%
$619,256
$619.3K
Market Conditions
NOI Build-Up for 7,300 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
$106.0K $14.52/SF
− Vacancy
−$4.7K −$0.64/SF
EGI
$101.3K $13.88/SF
− OpEx
−$45.6K −$6.25/SF
NOI
$55.7K $7.63/SF
Area
ZIP 40517
Vacancy
4.40%
Lease Rate
$14.52 /SF/Yr
Expense Ratio
45.00%
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%
$1,114,660
Cap Rate 7%
$796,186
Cap Rate 9%
$619,256
Alternative Uses
Best Use
Apartment 5plus
$796.2K
$696.7K – $928.9K
NOI $55,733 @ 7.0% cap · market cap 5.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.51M
$1.32M – $1.77M
NOI $105,961 @ 7.0% cap · market cap 11.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
430
Businesses Nearby
Explore this area
Business Placement
Demographics for 40517, KY
37,751
Population
18,306
Households
2.1
Avg Household Size
33
Median Age
41%
College-Educated
92%
High-School Grad
6.2 sq mi
ZIP Area
6,089
Density / Sq Mi
$51,778
Median Household Income
$35,010
Median Earnings
$1,092
Median Rent
$196,300
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Fully occupied multifamily property with recent exterior and electrical improvements, plus updated interiors in select units.
Where is this apartment building located?
The property is located at 388 Redding Rd Lexington, KY.
What is the asking price?
The asking price for this property is $944,900.
What are key features of this property?
This property features: 8‑unit apartment building with approximately 7,300 square feet; 100% occupied with all 8 tenants on month‑to‑month leases; Recent roof, gutters, windows, siding, and breaker panel improvements
