Fully Equipped Restaurant
For Sale
$1,385,000
8222 Preston Hwy, Louisville, KY 40219
Built-out kitchen, dining room, prep areas, and customer restrooms support multiple food-service concepts.
Property Size7,000 SF
Price / SF$197.86
Days on Market67
Property Features for 8222 Preston Hwy
General Information
Standard status
Active
Size
7,000 SF
Total Parking Spaces
11
Property subtype
Retail
Zoning
C2
Restaurant
Commercial Hood
Yes
Equipment Included
Yes
Additional Details
Furnished
Yes
Road Access
Yes
Amenities
Power
Water
Sewer
Natural Gas
Building Details
Year Built
1970
Listing Agency:
Encore Realty Group
(502) 797-7732
Listed By:
Fernando Martinez Gonzalez
(502) 797-7732
Source:
Kcrea.resimplifi
Added: Jun 26
Changed: Aug 29
Last Checked: Aug 29 at 8:47PM
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 Encore Realty Group
Investment Insights
Based on property information with market context.
This 7,000-square-foot restaurant property includes a furnished dining room, service and bar area, commercial kitchen, prep room, dry storage, customer restrooms, and rear preparation space. The dining area has approximately 20 tables and booths, along with high ceilings, tile flooring, televisions, lighting, and a stone-front service counter. Included kitchen equipment features a commercial hood, 36-inch six-burner range, 2’ x 4’ flat-top griddle, two gas floor fryers, cube-style ice maker, salad prep refrigerator, refrigerated equipment stand, reach-in freezer, food pan steamer, work tables, and stainless-steel surfaces. Electrical connections are in place for future walk-in cooler and freezer installation.
The property is located at 8222 Preston Hwy in Louisville, near Home Depot and other national retailers. The site includes 11 parking spaces, and the building was constructed in 1970. C2 zoning is identified for the property.
The property is located at 8222 Preston Hwy in Louisville, near Home Depot and other national retailers. The site includes 11 parking spaces, and the building was constructed in 1970. C2 zoning is identified for the property.
Key Highlights
- 7,000‑square‑foot restaurant property with dining, kitchen, prep, storage, and restroom areas
- Approximately 20 tables and booths with included dining furniture, televisions, lighting, and service counters
- Commercial kitchen with hood, 36‑inch six‑burner range, 2’ x 4’ griddle, two gas floor fryers, and ice maker
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
$98,371
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
7.10%
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%
$1,967,420
$2.0M
Cap Rate 7%
$1,405,300
$1.4M
Cap Rate 9%
$1,093,011
$1.1M
Market Conditions
NOI Build-Up for 7,000 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
$140.3K $20.04/SF
− Vacancy
−$9.1K −$1.30/SF
EGI
$131.2K $18.74/SF
− OpEx
−$32.8K −$4.68/SF
NOI
$98.4K $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%
$1,967,420
Cap Rate 7%
$1,405,300
Cap Rate 9%
$1,093,011
Alternative Uses
Best Use
Specialty Retail
$1.41M
$1.23M – $1.64M
NOI $98,371 @ 7.0% cap · market cap 7.10%
Second Best
Industrial
$598.5K
$523.7K – $698.3K
NOI $41,895 @ 7.0% cap · market cap 3.02%
Theoretical Best
Office A
$1.81M
$1.59M – $2.12M
NOI $127,008 @ 7.0% cap · market cap 9.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
924
Businesses Nearby
370k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 32%
Shops & Services 27%
Groceries 14%
Electronics 13%
Kroger
Groceries
50,586 visits/mo
0.5 miles
Best Buy
Electronics
35,536 visits/mo
0.5 miles
The Home Depot
Home Improvements & Furnishings
33,517 visits/mo
0.2 miles
McDonald's
Dining
28,549 visits/mo
0.1 miles
Dollar Tree
Shops & Services
20,195 visits/mo
0.4 miles
Demographics for 40219, KY
40,300
Population
16,699
Households
2.4
Avg Household Size
37
Median Age
20%
College-Educated
87%
High-School Grad
14.9 sq mi
ZIP Area
2,705
Density / Sq Mi
$52,271
Median Household Income
$37,108
Median Earnings
$967
Median Rent
$186,000
Median Home Value
Market
Vacancy Rate% for Retail in Louisville, KY
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Built-out kitchen, dining room, prep areas, and customer restrooms support multiple food-service concepts.
Where is this conventional restaurant located?
The property is located at 8222 Preston Hwy Louisville, KY.
What is the asking price?
The asking price for this property is $1,385,000.
What are key features of this property?
This property features: 7,000‑square‑foot restaurant property with dining, kitchen, prep, storage, and restroom areas; Approximately 20 tables and booths with included dining furniture, televisions, lighting, and service counters; Commercial kitchen with hood, 36‑inch six‑burner range, 2’ x 4’ griddle, two gas floor fryers, and ice maker
