8-Unit Apartment
For Sale
$699,900
3944 S 3rd St, Louisville, KY 40214
Each unit includes one bedroom, one bathroom, and separate utility metering.
Property Size4,944 SF
Price / SF$141.57
Days on Market42
Property Features for 3944 S 3rd St
General Information
Standard status
Active
Size
4,944 SF
Property subtype
Multi-Family
Site & Location
Highway Access
Yes
Road Access
Yes
Units
Unit Mix
8 x 1BR/1BA
Multifamily Units
8
Building Details
Year Built
1900
Buildings
1
Listing Agency:
Pollard Realty
Listed By:
Mike Hall
(502) 509-5131
Source:
Mlsky
Added: Jul 23
Changed: Aug 31
Last Checked: Sep 1 at 6:36PM
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 Pollard Realty
Investment Insights
Based on property information with market context.
Built in 1900, this 4,944-square-foot apartment property contains eight units, each configured with one bedroom and one bathroom. Separate metering serves every unit. The building occupies a corner lot and provides off-street parking, with additional on-street parking available. All units are occupied except the unit shown in the photographs, which is scheduled for occupancy in September.
The property is located at 3944 S 3rd St in Louisville, with access to the Watterson Expressway and proximity to Churchill Downs, the fairgrounds, and the University of Louisville. Its address places the building within an established residential setting near several major local destinations.
The property is located at 3944 S 3rd St in Louisville, with access to the Watterson Expressway and proximity to Churchill Downs, the fairgrounds, and the University of Louisville. Its address places the building within an established residential setting near several major local destinations.
Key Highlights
- Eight apartment units, each with one bedroom and one bathroom
- 4,944 square feet on a corner lot
- Separate utility metering for every unit
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
$43,292
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
6.19%
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%
$865,840
$865.8K
Cap Rate 7%
$618,457
$618.5K
Cap Rate 9%
$481,022
$481.0K
Market Conditions
NOI Build-Up for 4,944 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
$86.0K $17.40/SF
− Vacancy
−$7.3K −$1.48/SF
EGI
$78.7K $15.92/SF
− OpEx
−$35.4K −$7.16/SF
NOI
$43.3K $8.76/SF
Area
ZIP 40214
Vacancy
8.50%
Lease Rate
$17.40 /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%
$865,840
Cap Rate 7%
$618,457
Cap Rate 9%
$481,022
Alternative Uses
Best Use
Apartment 5plus
$618.5K
$541.2K – $721.5K
NOI $43,292 @ 7.0% cap · market cap 6.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.18M
$1.04M – $1.38M
NOI $82,926 @ 7.0% cap · market cap 11.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
605
Businesses Nearby
Explore this area
Business Placement
Demographics for 40214, KY
46,220
Population
20,459
Households
2.3
Avg Household Size
37
Median Age
23%
College-Educated
85%
High-School Grad
15.0 sq mi
ZIP Area
3,081
Density / Sq Mi
$53,563
Median Household Income
$37,121
Median Earnings
$950
Median Rent
$176,700
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 - Each unit includes one bedroom, one bathroom, and separate utility metering.
Where is this apartment building located?
The property is located at 3944 S 3rd St Louisville, KY.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: Eight apartment units, each with one bedroom and one bathroom; 4,944 square feet on a corner lot; Separate utility metering for every unit
