510 Henry Clay Blvd, Lexington | Offered at $4,750,000 ($44.89/SF)

Investment Overview

SVN | Stone Commercial Real Estate, on behalf of ownership, is pleased to offer for sale the 100% fee simple interest in 510 Henry Clay Blvd, Lexington, Kentucky (the "Property"): a ±105,804 SF industrial building on 5.997 acres inside New Circle Road. The Property is positioned for an owner user. About 45,000 SF is open for a buyer to occupy today, and existing tenants can be relocated within the building to bring a user to SBA's 51% owner occupancy. Commonwealth Installations and four smaller tenants carry a meaningful share of the cost of ownership as the buyer moves in or repositions the space. Lexington's industrial market is tight, with little vintage infillproduct left for sale. At under $45 per square foot, the Property offers a low basis in a submarket where comparable space leases for $7.25 to $8.50 per square foot gross.

Investment Highlights

• LOW BASIS · At $44.89/SF, the asking price sits below the $48 to $62/SF that functional Lexington, Nicholasville and Georgetown buildings over 75,000 SF have traded at. Ownership has put $352,048 into the building since 2022: new air handlers, a partial roof replacement, roll up doors, LED lighting, paint, dock fencing and a sealed and striped lot.
• INCOME THAT OFFSETS · Commonwealth Installations and four smaller tenants generate about $305,600 a year in gross rent, and the T-Mobile tower lease adds $24,000, for about $329,600 in total, well above the roughly $235,000 of annual operating expense. The income pays the building's carrying cost and puts money toward the mortgage.
• ROOM TO OCCUPY · About 45,000 SF, roughly 43% of the building, is open for a buyer now. Existing tenants can be relocated within the building to bring an owner user to the SBA 51% owner occupancy threshold.
• FUNCTIONAL FACILITY · Multi tenant warehouse and flex space with 480V three phase power, a monitored wet sprinkler system, dock and drive in doors, a fenced dock yard and a large paved parking field. Suited to storage, contractors, assembly and light manufacturing.
• TIGHT MARKET · Little ready to build industrial land remains near Lexington's core, and industrial vacancy has held near 4%. Electrical, piping and trade contractors are actively searching for space close to the core.
• INFILL LOCATION · Inside New Circle Road, 1.4 miles to New Circle, 2.9 miles to I-75 and 1.7 miles to downtown, with Winchester Road (32,000+ VPD) nearby.