Updated Quadplex with Garage
For Sale
$625,000
509 W 3rd St, Lexington, KY 40508
Fully leased four-unit property with separately metered electrical and private outdoor space.
Property Size3,585 SF
Price / SF$174.34
Days on Market27
Property Features for 509 W 3rd St
General Information
Standard status
Active
Size
3,585 SF
Property subtype
Multi-Family
Occupancy
100%
Additional Details
Multifamily Units
4
Amenities
in-unit washer/dryer
private fenced backyard
community firepit
on-site garage parking
Building Details
Year Built
1920
Year Renovated
2021
Listing Agency:
Bluegrass Sotheby's International Realty
(859) 396-6996
Listed By:
Susan Kennedy · License #202808
Source:
Sellkentucky
Added: Aug 6
Changed: Aug 30
Last Checked: Aug 30 at 8:18PM
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 Bluegrass Sotheby's International Realty
Investment Insights
Based on property information with market context.
This 3,585-square-foot quadplex was built in 1920 and is currently fully leased. The property retains period character through vaulted ceilings, hardwood flooring, and original-style window moldings, while major systems have been updated with high-efficiency heating and cooling and separately metered electrical completed in 2021. Each unit includes an in-unit washer and dryer.
Residents have access to a private fenced backyard with a community firepit. On-site garage parking is provided, with additional parking available. The property is in downtown Lexington’s Jefferson Corridor, within a short distance of the University of Kentucky, Rupp Arena, Transylvania University, and nearby dining and entertainment venues.
Residents have access to a private fenced backyard with a community firepit. On-site garage parking is provided, with additional parking available. The property is in downtown Lexington’s Jefferson Corridor, within a short distance of the University of Kentucky, Rupp Arena, Transylvania University, and nearby dining and entertainment venues.
Key Highlights
- 3,585 SF quadplex built in 1920
- Fully leased four‑unit property
- High‑efficiency heating and cooling systems
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
$29,784
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
4.77%
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%
$595,680
$595.7K
Cap Rate 7%
$425,486
$425.5K
Cap Rate 9%
$330,933
$330.9K
Market Conditions
NOI Build-Up for 3,585 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
$44.7K $12.48/SF
− Vacancy
−$2.2K −$0.61/SF
EGI
$42.5K $11.87/SF
− OpEx
−$12.8K −$3.56/SF
NOI
$29.8K $8.31/SF
Area
Lexington, KY
Vacancy
4.90%
Lease Rate
$12.48 /SF/Yr
Expense Ratio
30.00%
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%
$595,680
Cap Rate 7%
$425,486
Cap Rate 9%
$330,933
Alternative Uses
Best Use
Multifamily LT 5
$425.5K
$372.3K – $496.4K
NOI $29,784 @ 7.0% cap · market cap 4.77%
Second Best
Apartment 5plus
$386.0K
$337.7K – $450.3K
NOI $27,019 @ 7.0% cap · market cap 4.32%
Theoretical Best
Office A
$746.9K
$653.6K – $871.4K
NOI $52,285 @ 7.0% cap · market cap 8.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
1,447
Businesses Nearby
Explore this area
Business Placement
Demographics for 40508, KY
25,586
Population
11,458
Households
2.2
Avg Household Size
26
Median Age
36%
College-Educated
86%
High-School Grad
4.2 sq mi
ZIP Area
6,092
Density / Sq Mi
$28,040
Median Household Income
$13,316
Median Earnings
$900
Median Rent
$174,900
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?
Quadplex - Fully leased four-unit property with separately metered electrical and private outdoor space.
Where is this quadplex located?
The property is located at 509 W 3rd St Lexington, KY.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: 3,585 SF quadplex built in 1920; Fully leased four‑unit property; High‑efficiency heating and cooling systems
