Building Details

Year Built 2004

Buildings 1

Listing Agency: Grisanti Group Commercial Real Estate n***@grisantigroup.com Show Phone

Listed By: Nick Grisanti · License #274313 Show Phone

Source: Kcrea.resimplifi

Added: Oct 28, 2025 Changed: Aug 29 Last Checked: Aug 29 at 2:33PM

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Investment Insights

Based on property information with market context.

This drive-through restaurant building was constructed in 2004 as a purpose-built Moby Dick location and has since operated as Light House Diner. The property offers an established restaurant format that can support another drive-through concept, including restaurant or coffee use, or be adapted for general retail or office purposes.

The building is positioned on Taylorsville Road within Taylorsville’s primary commercial corridor. Nearby national restaurant and retail users include McDonald’s, AutoZone, Taco Bell, Papa John’s, Dairy Queen, Anytime Fitness, and Subway, creating a surrounding commercial setting with multiple established businesses.

Key Highlights

• Drive‑through restaurant building constructed in 2004
• Purpose‑built for Moby Dick
• Recently operated as Light House Diner

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

$23,436

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

5.21%

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%

$468,720 $468.7K

Cap Rate 7%

$334,800 $334.8K

Cap Rate 9%

$260,400 $260.4K

Market Conditions

NOI Build-Up for 2,000 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

$33.6K $16.80/SF

− Vacancy

−$2.4K −$1.18/SF

EGI

$31.2K $15.62/SF

− OpEx

−$7.8K −$3.91/SF

NOI

$23.4K $11.72/SF

Area

Spencer County, KY

Vacancy

7.00%

Lease Rate

$16.80 /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%

$468,720

Cap Rate 7%

$334,800

Cap Rate 9%

$260,400

Alternative Uses

Best Use

Specialty Retail

$334.8K

$293.0K – $390.6K (±1% cap)

NOI $23,436 @ 7.0% cap · market cap 5.21%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$421.6K

$368.9K – $491.9K (±1% cap)

NOI $29,514 @ 7.0% cap · market cap 6.56%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Lighthouse Diner Restaurant

Suggested Use

Top Pick HVAC Service Electrical Service Furniture & Home Goods (Bike/Boat/Book/etc) Store Carpet & Flooring Store Cafe & Coffee Shop

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

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

320

Businesses Nearby

Explore this area Business Placement

Demographics for 40071, KY

16,106

Population

6,264

Households

2.6

Avg Household Size

42

Median Age

21%

College-Educated

93%

High-School Grad

121.3 sq mi

ZIP Area

133

Density / Sq Mi

$97,349

Median Household Income

$45,121

Median Earnings

$941

Median Rent

$297,900

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 drive through restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Drive through restaurant - Purpose-built restaurant facility with potential for retail or office reuse.

Where is this drive through restaurant located?

The property is located at 688 Taylorsville Rd Taylorsville, KY.

What is the asking price?

The asking price for this property is $450,000.

What are key features of this property?

This property features: Drive‑through restaurant building constructed in 2004; Purpose‑built for Moby Dick; Recently operated as Light House Diner