Listing Agency: Cahill Real Estate Services c***@gmail.com Show Phone

Listed By: Cindy Cahill · License #188838 Show Phone

Source: Exprealty

Added: Jul 27 Changed: Aug 21 Last Checked: Aug 21 at 10:38AM

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Investment Insights

Based on property information with market context.

This 5,500-square-foot auto shop and building combines an established custom exhaust and auto repair operation with a towing business. The lower level provides repair stations and a single overhead door, while the rear portion of the property offers a large parking area for towing storage. An additional section of the lot is located across the street.

The upper level is unfinished and available for future use. One tow truck is included in the sale, with a second truck available separately. Contents and supplies, including tires, parts, and work tools, are subject to negotiation. The property is located at 5323 Madison Pike in Independence, KY.

Key Highlights

• 5,500‑square‑foot auto shop and building
• Established custom exhaust and auto repair business
• Established towing business with various accounts

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

$59,623

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

7.19%

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%

$1,192,460 $1.2M

Cap Rate 7%

$851,757 $851.8K

Cap Rate 9%

$662,478 $662.5K

Market Conditions

NOI Build-Up for 5,500 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

$90.4K $16.44/SF

− Vacancy

−$5.2K −$0.95/SF

EGI

$85.2K $15.49/SF

− OpEx

−$25.6K −$4.65/SF

NOI

$59.6K $10.84/SF

Area

Kenton County, KY

Vacancy

5.80%

Lease Rate

$16.44 /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%

$1,192,460

Cap Rate 7%

$851,757

Cap Rate 9%

$662,478

Alternative Uses

Best Use

Retail

$851.8K

$745.3K – $993.7K (±1% cap)

NOI $59,623 @ 7.0% cap · market cap 7.19%

Second Best

Industrial

$404.1K

$353.6K – $471.5K (±1% cap)

NOI $28,288 @ 7.0% cap · market cap 3.41%

Theoretical Best

Office A

$1.42M

$1.24M – $1.66M (±1% cap)

NOI $99,391 @ 7.0% cap · market cap 11.99%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Auto shops

Suggested Use

Top Pick Real Estate Agency Law Firm Big Box & Wholesale Store Auto Repair Shop Auto Parts Store Building Supply

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

174

Businesses Nearby

37k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Dining 76% Shops & Services 24%

Wendy's Dining

15,665 visits/mo 0.5 miles

Skyline Chili Dining

12,145 visits/mo 0.5 miles

Shell Shops & Services

5,701 visits/mo 0.4 miles

U.S. Bank Shops & Services

3,003 visits/mo 0.4 miles

Demographics for 41051, KY

31,582

Population

11,643

Households

2.7

Avg Household Size

35

Median Age

38%

College-Educated

95%

High-School Grad

30.1 sq mi

ZIP Area

1,049

Density / Sq Mi

$100,169

Median Household Income

$50,949

Median Earnings

$1,219

Median Rent

$241,600

Median Home Value

Market

Vacancy Rate% for Retail in South region

7% 2020

6.2% 2021

5.1% 2022

4.8% 2023

4.9% 2024

5.4% 2025

Questions? Ask Rey

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What type of property is this? Where is this auto shops located? What is the asking price? Find similar properties ... What are key features of this property?

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Similar Off Market Nearby

• BGI Towing — 2020 flintwood ct, independence, ky 41051
• Valvoline Instant Oil Change — 2000 Declaration Dr, Independence, KY 41051
• B&B Auto Service — 5213 Madison Pike, Independence, KY 41051
• Jude's Custom Exhaust Auto Repair & Towing — 5323 Madison Pike, Independence, KY 41051

Frequently Asked Questions

What type of property is this?

Auto shop - Lower-level repair space includes an overhead door, repair stations, and rear parking for towing storage.

Where is this auto shop located?

The property is located at 5323 Madison Pike Independence, KY.

What is the asking price?

The asking price for this property is $829,000.

What are key features of this property?

This property features: 5,500‑square‑foot auto shop and building; Established custom exhaust and auto repair business; Established towing business with various accounts