Renovated Rehabilitation
For Sale
$9,500,000
4627 Dixie Hwy, Louisville, KY 40216
Purpose-built behavioral health facility with client rooms, dining, commercial kitchen, and recreational courts.
Property Size38,211 SF
Price / SF$248.62
Days on Market21
Property Features for 4627 Dixie Hwy
General Information
Standard status
Active
Size
38,211 SF
Property subtype
Healthcare
Zoning
C2
Listing Agency:
FJR Commercial
(502) 892-0228
Listed By:
Brian Forrest · License #204818
(502) 892-0228
Source:
Kcrea.resimplifi
Added: Aug 11
Changed: Aug 31
Last Checked: Aug 31 at 1:00PM
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 FJR Commercial
Investment Insights
Based on property information with market context.
This 38,211-square-foot rehabilitation center in Louisville was designed for inpatient behavioral health operations and has never been occupied. The property includes multiple structures, client rooms, administrative offices, a large dining and gathering area, and a commercial kitchen with new equipment. A 50-plus-person auditorium adds space for instruction, group activities, or presentations, while the overall layout supports clinical and residential functions.
Outdoor improvements include basketball, pickleball, and sand volleyball courts, along with on-site parking for staff, visitors, and admissions activity. The facility is licensed for 144 clients and is zoned C2. Located at 4627 Dixie Hwy, the property sits 1 mile off I-264 and benefits from traffic counts exceeding 50,000 vehicles daily, providing access to the greater Louisville area.
Outdoor improvements include basketball, pickleball, and sand volleyball courts, along with on-site parking for staff, visitors, and admissions activity. The facility is licensed for 144 clients and is zoned C2. Located at 4627 Dixie Hwy, the property sits 1 mile off I-264 and benefits from traffic counts exceeding 50,000 vehicles daily, providing access to the greater Louisville area.
Key Highlights
- 38,211 SF facility designed for inpatient behavioral health operations
- Licensed for 144 clients
- Never‑occupied property with renovation completed throughout
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
$537,308
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
5.66%
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%
$10,746,160
$10.7M
Cap Rate 7%
$7,675,829
$7.7M
Cap Rate 9%
$5,970,089
$6.0M
Market Conditions
NOI Build-Up for 38,211 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
$962.9K $25.20/SF
− Vacancy
−$67.4K −$1.76/SF
EGI
$895.5K $23.44/SF
− OpEx
−$358.2K −$9.37/SF
NOI
$537.3K $14.06/SF
Area
ZIP 40216
Vacancy
7.00%
Lease Rate
$25.20 /SF/Yr
Expense Ratio
40.00%
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%
$10,746,160
Cap Rate 7%
$7,675,829
Cap Rate 9%
$5,970,089
Alternative Uses
Best Use
Healthcare Medical
$7.68M
$6.72M – $8.96M
NOI $537,308 @ 7.0% cap · market cap 5.66%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.80M
$8.57M – $11.43M
NOI $685,964 @ 7.0% cap · market cap 7.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
664
Businesses Nearby
Explore this area
Business Placement
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
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Rehabilitation center - Purpose-built behavioral health facility with client rooms, dining, commercial kitchen, and recreational courts.
Where is this rehabilitation center located?
The property is located at 4627 Dixie Hwy Louisville, KY.
What is the asking price?
The asking price for this property is $9,500,000.
What are key features of this property?
This property features: 38,211 SF facility designed for inpatient behavioral health operations; Licensed for 144 clients; Never‑occupied property with renovation completed throughout
