Multi-Tenant Office Building with
For Sale
$699,000
4821 S Highway 27, Somerset, KY 42501
COMMERCIAL - Somerset, KY
Property Size6,254 SF
Lot Size0.67 Acres
Price / SF$111.77
Days on Market50
Property Features for 4821 S Highway 27
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
From intersection of Hwy 27 and 914. Head south on 27 property is on the right
Subdivision
902 - Southwest Pulaski County
Standard status
Active
APN
063-1-1-89
Size
6,254 SF
Lot size
0.67 Acres
Amenities
common-area restrooms
secure vault rooms
garage/storage space
Building Details
Year built
1970
Listing Agency:
CENTURY 21 Advantage Realty
(606) 451-1021
Listed By:
J Daniel Hicks · License #222060
(606) 416-4660
Added: Jul 12
Changed: Aug 4
Last Checked: Aug 30 at 10:06PM
MLS# 26017836
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 versatile commercial property in Somerset, KY includes four large commercial spaces along with multiple private offices, common-area restrooms, secure vault rooms, and garage/storage space. The building is configured with multiple entrances to support flexible access across the different spaces.
The property is positioned with excellent Hwy 27 frontage and high visibility. It also features a large, updated apartment with a private entrance, suitable for an owner/manager or additional rental income.
Recent improvements include a new roof and gutters installed within the last 12 months. An additional lot with a billboard is available for purchase with the property.
The property is positioned with excellent Hwy 27 frontage and high visibility. It also features a large, updated apartment with a private entrance, suitable for an owner/manager or additional rental income.
Recent improvements include a new roof and gutters installed within the last 12 months. An additional lot with a billboard is available for purchase with the property.
Key Highlights
- 1970‑built commercial property with four large commercial spaces and multiple private offices
- Excellent Hwy 27 frontage with high‑visibility access, plus multiple entrances and common‑area restrooms
- Includes secure vault rooms and garage/storage space
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
$55,311
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
7.91%
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%
$1,106,220
$1.1M
Cap Rate 7%
$790,157
$790.2K
Cap Rate 9%
$614,567
$614.6K
Market Conditions
NOI Build-Up for 6,254 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
$85.6K $13.68/SF
− Vacancy
−$11.8K −$1.89/SF
EGI
$73.7K $11.79/SF
− OpEx
−$18.4K −$2.95/SF
NOI
$55.3K $8.84/SF
Area
Pulaski County, KY
Vacancy
13.80%
Lease Rate
$13.68 /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%
$1,106,220
Cap Rate 7%
$790,157
Cap Rate 9%
$614,567
Alternative Uses
Best Use
Office B
$790.2K
$691.4K – $921.9K
NOI $55,311 @ 7.0% cap · market cap 7.91%
Second Best
Apartment 5plus
$606.9K
$531.0K – $708.1K
NOI $42,483 @ 7.0% cap · market cap 6.08%
Theoretical Best
Specialty Retail
$1.07M
$932.3K – $1.24M
NOI $74,583 @ 7.0% cap · market cap 10.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
251
Businesses Nearby
Explore this area
Business Placement
Demographics for 42501, KY
18,047
Population
8,039
Households
2.2
Avg Household Size
43
Median Age
17%
College-Educated
84%
High-School Grad
199.7 sq mi
ZIP Area
90
Density / Sq Mi
$49,449
Median Household Income
$38,121
Median Earnings
$808
Median Rent
$131,400
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Four commercial spaces plus a private-entrance apartment, with private offices, restrooms, vault rooms, and garage/storage.
Where is this office units located?
The property is located at 4821 S Highway 27 Somerset, KY.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: 1970‑built commercial property with four large commercial spaces and multiple private offices; Excellent Hwy 27 frontage with high‑visibility access, plus multiple entrances and common‑area restrooms; Includes secure vault rooms and garage/storage space
