High-Traffic Retail Investment
For Sale
Contact for pricing
508 Lexington Road, Versailles, KY 40383
Single-tenant Giovanni’s Pizza with drive-through in thriving retail corridor.
Property Size1,812 SF
Price / SF$328.37
Days on Market418
Property Features for 508 Lexington Road
General Information
Standard status
Active
Size
1,812 SF
Total Parking Spaces
15
Property subtype
Retail
Zoning
Commercial
Occupancy
100%
Investment Type
Net Lease
Net Operating Income
$42,000
Building Details
Year Renovated
2024
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Coleman Group Commercial Real Estate & Property Managemenet
Listed By:
Isa Mashni · License #KY 46403
Source:
Crexi
Added: Jul 1, 2025
Changed: Aug 11
Last Checked: Aug 21 at 8:38AM
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 Coleman Group Commercial Real Estate & Property Managemenet
Investment Insights
Based on property information with market context.
This is an opportunity to acquire a single-tenant retail property leased to Giovanni’s Pizza, a regional brand with over 100 locations. The property is offered at $595,000, generating a net operating income of $37,173 annually. The tenant operates under a NN lease with 3 years and 1 month remaining. The tenant is responsible for the interior of the building, parking lot, all lighting electrical, plumbing HVAC repairs, all utilities, property taxes, and HVAC preventative maintenance. The landlord is responsible for insurance, HVAC replacement (newly installed HVAC in 2024), exterior structure, and roof. There are no renewal options. The property is positioned along a major retail and traffic corridor, with high visibility, excellent frontage, and two access points. It also features drive-through access. Located directly across from the largest Kroger in Kentucky, the site is surrounded by national and regional retailers including Chipotle, Starbucks, Wendy’s, Dunkin’, and Valvoline. Additional parking is available via an adjacent lot. The property is 1812 square feet and is suitable for conventional restaurants, restaurants, NNN properties, specialty properties, retail space, retail properties & spaces, and drive-through restaurants.
Key Highlights
- High‑traffic location on a major retail corridor, directly across from the largest Kroger in Kentucky, surrounded by national retailers.
- NN lease provides stable, passive income of $37,173 annually with a 6.25% cap rate.
- Leased to Giovanni's Pizza, a well‑established regional brand with over 100 locations.
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
$21,091
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
3.54%
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%
$421,820
$421.8K
Cap Rate 7%
$301,300
$301.3K
Cap Rate 9%
$234,344
$234.3K
Market Conditions
NOI Build-Up for 1,812 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
$29.8K $16.44/SF
− Vacancy
−$1.7K −$0.92/SF
EGI
$28.1K $15.52/SF
− OpEx
−$7.0K −$3.88/SF
NOI
$21.1K $11.64/SF
Area
Jessamine County, KY
Vacancy
5.60%
Lease Rate
$16.44 /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%
$421,820
Cap Rate 7%
$301,300
Cap Rate 9%
$234,344
Alternative Uses
Best Use
Specialty Retail
$301.3K
$263.6K – $351.5K
NOI $21,091 @ 7.0% cap · market cap 3.54%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$459.2K
$401.8K – $535.8K
NOI $32,146 @ 7.0% cap · market cap 5.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
528
Businesses Nearby
268k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 49%
Shops & Services 27%
Groceries 21%
Electronics 1%
Kroger
Groceries
50,102 visits/mo
0.2 miles
McDonald's
Dining
24,786 visits/mo
0.1 miles
Kroger Fuel Center
Shops & Services
17,324 visits/mo
0.1 miles
7 Brew Coffee
Dining
13,401 visits/mo
0.2 miles
Dollar Tree
Shops & Services
12,973 visits/mo
0.1 miles
Demographics for 40383, KY
24,592
Population
10,431
Households
2.4
Avg Household Size
43
Median Age
42%
College-Educated
91%
High-School Grad
150.4 sq mi
ZIP Area
164
Density / Sq Mi
$80,444
Median Household Income
$42,365
Median Earnings
$998
Median Rent
$279,400
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Single-tenant Giovanni’s Pizza with drive-through in thriving retail corridor.
Where is this conventional restaurant located?
The property is located at 508 Lexington Road Versailles, KY.
What is the asking price?
The asking price for this property is $595,000.
What are key features of this property?
This property features: High‑traffic location on a major retail corridor, directly across from the largest Kroger in Kentucky, surrounded by national retailers.; NN lease provides stable, passive income of $37,173 annually with a 6.25% cap rate.; Leased to Giovanni's Pizza, a well‑established regional brand with over 100 locations.
