8-Unit Apartment
For Sale
$959,900
Pending
388 Redding Road, Lexington, KY 40517
MULTI_FAMILY - Lexington, KY
Property Size7,300 SF
Lot Size0.27 Acres
Days on Market114
Property Features for 388 Redding Road
General Information
Property type
Residential Multi Family
Property subtype
Quadruplex
Zoning description
R-3 - PLANNED NBHD RESIDENTIAL
Bedrooms
16
Bathrooms
8
Full bathrooms
8
Rooms
Bedroom 4, Bedroom 2, Bedroom 14, Bedroom 15, Bathroom 8, Bedroom 7, Bedroom 13, Bathroom 6, Bathroom 5, Bedroom 6, Bedroom 5, Bathroom 3, Bedroom 16, Bedroom 8, Bathroom 2, Bathroom 7, Bedroom 9, Bedroom 11, Bathroom 4, Bathroom 1, Bedroom 12, Bedroom 3, Bedroom 10, Bedroom 1
Subdivision
Kirklevington
High school
Tates Creek
Elementary school district
Fayette County - 1
Middle school district
Fayette County - 1
High school district
Fayette County - 1
Directions
Nicholasville Rd To E Reynolds Rd To Lansdowne Dr To Redding Rd. Building Right Next To Kirklevington Park.
Standard status
Pending
APN
13744638
Size
7,300 SF
Lot size
0.27 Acres
Utilities
Heating system
Electric (Heating)
Cooling system
Central Air
Building Details
Year built
1978
Floors in Building
2
Listing Agency:
Bluegrass Property Exchange
(859) 469-9429
Listed By:
Iris Todd · License #217832
(859) 396-3267
Added: Apr 15
Changed: Jul 24
Last Checked: Aug 6 at 5:06PM
MLS# 26007953
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 8-unit apartment building is offered as a turn-key investment with the property currently 100% occupied. All eight tenants are on month-to-month leases, providing flexibility for future operational and interior updates. Recent major capital improvements include a newer roof, gutters, windows, siding, and breaker panels, and several units have been recently updated/renovated.
The property is located at 388 Redding Road in Lexington, Kentucky, within Fayette County (40517). According to the seller, five of the eight tenants are long-term residents who would like to remain, supporting dependable in-place occupancy.
The building’s current occupancy and documented exterior/electrical improvements, combined with unit-level updates completed to date, create a foundation for continued management and potential interior upgrades.
The property is located at 388 Redding Road in Lexington, Kentucky, within Fayette County (40517). According to the seller, five of the eight tenants are long-term residents who would like to remain, supporting dependable in-place occupancy.
The building’s current occupancy and documented exterior/electrical improvements, combined with unit-level updates completed to date, create a foundation for continued management and potential interior upgrades.
Key Highlights
- 8‑unit apartment building built in 1978
- Property is 100% occupied with all 8 tenants on month‑to‑month leases
- Recent major improvements include newer roof, gutters, windows, siding, and breaker panels
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
5.81%
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 5.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.51M
$1.32M – $1.77M
NOI $105,961 @ 7.0% cap · market cap 11.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
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 8-unit building with recent exterior and electrical improvements and month-to-month tenant leases.
Where is this apartment building located?
The property is located at 388 Redding Road Lexington, KY.
What is the asking price?
The asking price for this property is $959,900.
What are key features of this property?
This property features: 8‑unit apartment building built in 1978; Property is 100% occupied with all 8 tenants on month‑to‑month leases; Recent major improvements include newer roof, gutters, windows, siding, and breaker panels
