Corner Mixed-Use
For Sale
$3,500,000
638 E Market St, Louisville, KY 40202
C2-zoned asset combines retail, residential, wine bar, and office components with a landscaped rear lot.
Property Size9,683 SF
Price / SF$361.46
Days on Market210
Property Features for 638 E Market St
General Information
Standard status
Active
Size
9,683 SF
Property subtype
Retail
Zoning
C2
Site & Location
Corner Location
Yes
Road Access
Yes
Amenities
outdoor landscaped lot
Power
Water
Sewer
Natural Gas
Building Details
Buildings
2
Tenancy
Multi
Listing Agency:
Fischer's R E Brkg & Betterment Haus LLC
(502) 608-3133
Listed By:
John Fischer · License #72871
(502) 608-3133
Source:
Kcrea.resimplifi
Added: Feb 3
Changed: Aug 31
Last Checked: Aug 31 at 12:47PM
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 Fischer's R E Brkg & Betterment Haus LLC
Investment Insights
Based on property information with market context.
This C2-zoned mixed-use property contains 9,683 square feet across two adjoining addresses that meet at a corner. The East Market Street building includes a first-floor retail store and a full-size apartment above. The South Clay Street building is occupied by a wine bar, a law office, and additional small office areas. A landscaped outdoor lot extends behind the property.
The asset sits in Louisville’s NULU downtown neighborhood, adjacent to Meesh Meesh, a James Beard Award restaurant. Its existing mix of retail, residential, hospitality, and office space supports multiple current commercial uses within one connected property. The rear lot and the South Clay Street component add additional physical area for evaluating future planning or redevelopment concepts, subject to applicable approvals.
The asset sits in Louisville’s NULU downtown neighborhood, adjacent to Meesh Meesh, a James Beard Award restaurant. Its existing mix of retail, residential, hospitality, and office space supports multiple current commercial uses within one connected property. The rear lot and the South Clay Street component add additional physical area for evaluating future planning or redevelopment concepts, subject to applicable approvals.
Key Highlights
- 9,683‑square‑foot mixed‑use property spanning 638 E Market St and 214 S Clay St
- C2 zoning
- East Market Street building includes retail space and a full‑size second‑floor apartment
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
$136,076
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
3.89%
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%
$2,721,520
$2.7M
Cap Rate 7%
$1,943,943
$1.9M
Cap Rate 9%
$1,511,956
$1.5M
Market Conditions
NOI Build-Up for 9,683 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
$194.0K $20.04/SF
− Vacancy
−$12.6K −$1.30/SF
EGI
$181.4K $18.74/SF
− OpEx
−$45.4K −$4.68/SF
NOI
$136.1K $14.05/SF
Area
Louisville, KY
Vacancy
6.50%
Lease Rate
$20.04 /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%
$2,721,520
Cap Rate 7%
$1,943,943
Cap Rate 9%
$1,511,956
Alternative Uses
Best Use
Specialty Retail
$1.94M
$1.70M – $2.27M
NOI $136,076 @ 7.0% cap · market cap 3.89%
Second Best
Office B
$1.79M
$1.56M – $2.08M
NOI $125,056 @ 7.0% cap · market cap 3.57%
Theoretical Best
Office A
$2.51M
$2.20M – $2.93M
NOI $175,688 @ 7.0% cap · market cap 5.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
6,901
Businesses Nearby
Explore this area
Business Placement
Demographics for 40202, KY
7,179
Population
4,242
Households
1.7
Avg Household Size
39
Median Age
27%
College-Educated
83%
High-School Grad
1.6 sq mi
ZIP Area
4,487
Density / Sq Mi
$29,382
Median Household Income
$33,205
Median Earnings
$881
Median Rent
$340,000
Median Home Value
Market
Vacancy Rate% for Office in Louisville, KY
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - C2-zoned asset combines retail, residential, wine bar, and office components with a landscaped rear lot.
Where is this mixed-use property located?
The property is located at 638 E Market St Louisville, KY.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: 9,683‑square‑foot mixed‑use property spanning 638 E Market St and 214 S Clay St; C2 zoning; East Market Street building includes retail space and a full‑size second‑floor apartment
