Two-Unit Duplex
For Sale
$275,000
723-725 Terrace View Dr, Lexington, KY 40504
Corner-lot duplex with established long-term tenancy near Versailles Road.
Property Size1,538 SF
Price / SF$178.80
Days on Market9
Property Features for 723-725 Terrace View Dr
General Information
Standard status
Active
Size
1,538 SF
Property subtype
Multi-Unit (2-4)
Units
Unit Mix
2 x 2BR
Multifamily Units
2
Additional Details
Road Access
Yes
Amenities
Lot Size Acres: 0.21
Asphalt Roof
Percentage of Tax that is Deductable: 0
Has Central AC: 1
Forced Air Heating, Electric Heat Fuel
Sale, Sale Type: Foreclosure, Availability Date: 2026-09-14
Residential Style: 2600, One Story, Built in 1965
Neighborhood Name: Westgate
Property Zone Type: 100, Above Area Square Feet: 1538
Construction Type: Masonry - Brick
Brick Siding
Building Details
Year Built
1965
Buildings
1
Tenancy
Multi
Listing Agency:
Schrader Commercial Properties Llc
Listed By:
James Schrader · License #41930
(859) 288-5008
Source:
Doyle-realty
Added: Sep 14
Changed: Sep 21
Last Checked: Sep 21 at 6:49AM
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 Schrader Commercial Properties Llc
Investment Insights
Based on property information with market context.
This 1,538-square-foot duplex includes two separate two-bedroom units and was built in 1965. The property occupies a well-maintained corner lot and is currently leased to long-term tenants, providing an established residential income configuration.
Located at 723-725 Terrace View Dr in Lexington, the property sits just off Versailles Road. The surrounding school information includes James Lane Allen Elementary School, Beaumont Middle School, and Lafayette High School, all within the Fayette County School District.
Located at 723-725 Terrace View Dr in Lexington, the property sits just off Versailles Road. The surrounding school information includes James Lane Allen Elementary School, Beaumont Middle School, and Lafayette High School, all within the Fayette County School District.
Key Highlights
- 1,538 SF duplex with two separate 2‑bedroom units
- Built in 1965
- Well‑maintained corner lot
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
$12,778
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
4.65%
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%
$255,560
$255.6K
Cap Rate 7%
$182,543
$182.5K
Cap Rate 9%
$141,978
$142.0K
Market Conditions
NOI Build-Up for 1,538 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
$19.2K $12.48/SF
− Vacancy
−$941 −$0.61/SF
EGI
$18.3K $11.87/SF
− OpEx
−$5.5K −$3.56/SF
NOI
$12.8K $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%
$255,560
Cap Rate 7%
$182,543
Cap Rate 9%
$141,978
Alternative Uses
Best Use
Multifamily LT 5
$182.5K
$159.7K – $213.0K
NOI $12,778 @ 7.0% cap · market cap 4.65%
Second Best
Apartment 5plus
$165.6K
$144.9K – $193.2K
NOI $11,591 @ 7.0% cap · market cap 4.21%
Theoretical Best
Office A
$320.4K
$280.4K – $373.9K
NOI $22,431 @ 7.0% cap · market cap 8.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
318
Businesses Nearby
Explore this area
Business Placement
Demographics for 40504, KY
26,042
Population
13,175
Households
2
Avg Household Size
34
Median Age
32%
College-Educated
84%
High-School Grad
6.2 sq mi
ZIP Area
4,200
Density / Sq Mi
$43,015
Median Household Income
$29,195
Median Earnings
$888
Median Rent
$209,400
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?
Duplex - Corner-lot duplex with established long-term tenancy near Versailles Road.
Where is this duplex located?
The property is located at 723-725 Terrace View Dr Lexington, KY.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: 1,538 SF duplex with two separate 2‑bedroom units; Built in 1965; Well‑maintained corner lot
