Mixed-Use Property with
For Sale
$750,000
605 Cedar Grove Rd, Shepherdsville, KY 40165
Commercial and residential improvements share one deed within C-2 Community Commercial Zone zoning.
Property Size2,400 SF
Lot Size1.88 Acres
Price / SF$312.50
Days on Market215
Property Features for 605 Cedar Grove Rd
General Information
Standard status
Active
Size
2,400 SF
Total Parking Spaces
15
Lot size
1.88 Acres
Property subtype
Retail
Zoning
C-2 Community Commercial Zone
Additional Details
Highway Access
Yes
Amenities
Power
Water
Sewer
Natural Gas
15 Parking Spaces
Building Details
Year Built
2000
Listing Agency:
Knob & Key Realty, LLC
(502) 376-7797
Listed By:
Bobby Vormbrock · License #204766
(502) 376-7797
Source:
Kcrea.resimplifi
Added: Jan 27
Changed: Aug 30
Last Checked: Aug 30 at 1:04PM
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 Knob & Key Realty, LLC
Investment Insights
Based on property information with market context.
This mixed-use property combines a 2,400-square-foot commercial building with a 1,524-square-foot Bedford stone residence on approximately 1.88 acres. The commercial building has one tenant and includes an additional 2,400 square feet in the basement, providing existing lower-level space that may serve as storage or be finished for additional area. The home has an unfinished basement and may function as a residence, rental property, or commercial space, subject to applicable requirements.
Additional improvements include seven storage bays for car or boat storage, a detached one-car garage, and a lean-to storage area. The property is located near I-65 and is zoned C-2 Community Commercial Zone. The commercial and residential components remain together on one deed, and the seller will not split the property.
Additional improvements include seven storage bays for car or boat storage, a detached one-car garage, and a lean-to storage area. The property is located near I-65 and is zoned C-2 Community Commercial Zone. The commercial and residential components remain together on one deed, and the seller will not split the property.
Key Highlights
- Approximately 1.88 acres with commercial and residential improvements on one deed
- 2,400‑square‑foot commercial building with one tenant
- Additional 2,400 square feet in the commercial building basement
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
$28,350
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
3.78%
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%
$567,000
$567.0K
Cap Rate 7%
$405,000
$405.0K
Cap Rate 9%
$315,000
$315.0K
Market Conditions
NOI Build-Up for 2,400 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
$50.4K $21.00/SF
− Vacancy
−$5.0K −$2.10/SF
EGI
$45.4K $18.90/SF
− OpEx
−$17.0K −$7.09/SF
NOI
$28.4K $11.81/SF
Area
Bullitt County, KY
Vacancy
10.00%
Lease Rate
$21.00 /SF/Yr
Expense Ratio
37.50%
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%
$567,000
Cap Rate 7%
$405,000
Cap Rate 9%
$315,000
Alternative Uses
Best Use
Mixed Use
$405.0K
$354.4K – $472.5K
NOI $28,350 @ 7.0% cap · market cap 3.78%
Second Best
Retail
$342.6K
$299.8K – $399.7K
NOI $23,980 @ 7.0% cap · market cap 3.20%
Theoretical Best
Office A
$506.0K
$442.7K – $590.3K
NOI $35,417 @ 7.0% cap · market cap 4.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
176
Businesses Nearby
6k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
BP
Shops & Services
3,104 visits/mo
0.1 miles
Valero Energy
Shops & Services
2,816 visits/mo
0.5 miles
Demographics for 40165, KY
36,161
Population
15,622
Households
2.3
Avg Household Size
40
Median Age
18%
College-Educated
89%
High-School Grad
113.2 sq mi
ZIP Area
319
Density / Sq Mi
$77,083
Median Household Income
$41,914
Median Earnings
$939
Median Rent
$242,700
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?
Mixed-use property - Commercial and residential improvements share one deed within C-2 Community Commercial Zone zoning.
Where is this mixed-use property located?
The property is located at 605 Cedar Grove Rd Shepherdsville, KY.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: Approximately 1.88 acres with commercial and residential improvements on one deed; 2,400‑square‑foot commercial building with one tenant; Additional 2,400 square feet in the commercial building basement
