20-Unit Mixed-Use Asset w/ 6,715 SF Commercial Shell

Description:

500 N 17th St – PilotHouse | Modern Mixed-Use Asset with Significant Upside

PilotHouse is a 2021-built, mixed-use development offering 20 residential units and +/- 6,715 SF of ground-floor shell space ideal for retail, office, or residential buildout. Currently 80% occupied with below-market rents, the property presents a compelling value-add opportunity for strategic investors, mission-aligned organizations, or community-focused groups seeking to drive neighborhood revitalization while capturing substantial upside. Located in a Qualified Opportunity Zone along a high-growth redevelopment corridor, PilotHouse combines modern construction with long-term investment fundamentals and social impact potential.

Unit Mix

• 1 × 2 Bed / 2 Bath

• 4 × 2 Bed / 1 Bath

• 11 × 1 Bed / 1 Bath

• 2 × 1 Bed / 1 Bath w/ Balcony

• 2 × Studio

At a Glance

• Year Built: 2021

• Residential Units: 20 (80% occupied)

• Commercial Shell: ±6,715 SF (C-2 zoning, divisible into 1–3 suites)

• Current Residential Rent: $11,955/month

• Market Rent Potential: ≈ $18,800/month → +36.4% Upside

• Vacancy: 4 residential units + entire ground-floor commercial shell

• Parking: 12-space private lot + ample street parking

Financial Overview: Key Drivers of Underperformance
1. Revenue Losses

• Below-Market Rents: In-place rents are ~36% below market due to mismanagement and poor lease oversight

→ Estimated Loss: $81,600/year

• Residential Vacancy: 4 of 20 units are vacant in a market that should support 95%+ occupancy

→ Estimated Loss: $45,000–$54,000/year

• Vacant Commercial Shell: Entire 6,715 SF ground-floor space is un-leased and unimproved

→ Estimated Loss: $67,000–$100,000/year

• Total Lost Revenue Potential: $193,600–$235,600/year

2. Operational Inefficiencies

• Inconsistent rent collections and high expense ratios due to ineffective or absentee management

• Delays in unit turnover and maintenance reduce NOI

• Lack of local oversight leads to missed enforcement and income optimization opportunities

3. Unused Commercial Component

• Shell space incurs holding costs (taxes, insurance, maintenance) with no offsetting income

• No existing tenant improvements or activation plan in place

Conclusion
PilotHouse is underperforming due to a lack of professional management and strategic leasing—not because of location, asset quality, or market fundamentals. The building is structurally sound, modern, and located in a high-potential area. With proper execution, this property is primed for significant upside.

Value-Add Blueprint
Rent Upside: Capture +36% in rent growth through re-tenanting, strategic renewals, or leveraging subsidy programs (e.g., LIHTC, Section 8)

Activate the Shell: Build out ±6,715 SF for retail, creative office, or residential conversion. Ideal for mission-driven users to co-locate services with housing

Implement Local Management: Deploy experienced, on-the-ground operators to improve collections, reduce expense leakage, and increase tenant satisfaction

Investment Highlights
Area Demographics – 500 N 17th St | Louisville, KY
1-Mile Radius Snapshot
Population: ~16,800

Median Age: 36

Median Household Income: $31,430

Per Capita Income: $25,817

Housing Occupancy: ~82% occupied

Tenure: Majority renter-occupied

Employment Status:

33% full-time

25% part-time

42% not in labor force

3-Mile Radius (Metro Averages)
Population: ~1.36 million

Median Age: 39.3

Median Household Income: $71,737

Median Home Value: $236,400

Homeownership Rate: ~68.6%

Total Employed: ~675,000

Neighborhood & Connectivity Highlights
PORTAL + ARTPORTAL (0.2 mi)

A vibrant arts and event venue driving creative placemaking and community engagement.

Portland Promise Center (0.2 mi)

Local nonprofit offering youth programming, tutoring, and neighborhood services.

Family Scholar House – Downtown Campus (0.6 mi)

Nationally recognized housing and education provider for single-parent families.

Waterfront Park Phase IV (0.8 mi)

Expanding green space and trail network connecting Portland to downtown Louisville.

Goodwill Opportunity Campus (U/C) (1.3 mi)

Transformative workforce, housing, and social services hub under development.

Boone Square Park (0.3 mi)

Local park with courts, playground, and gathering space.

Jefferson Community & Technical College (1.7 mi)

Education anchor serving workforce development and adult learners.

Norton Healthcare Pavilion (1.6 mi)

Comprehensive healthcare center including family care, urgent care, and specialties.

University of Louisville Hospital (2.1 mi)

Regional academic medical center and Level I trauma facility.

TARC Bus Lines (Routes 21 & 25) (<0.1 mi)

Immediate transit access with direct connections to downtown, healthcare, and job centers.

Sale Terms
Asking Price: Negotiable – Make Offer

Delivery Condition: As-is; 80% residential occupancy with full commercial shell available

Commercial Space: ±6,715 SF – vacant, unimproved, divisible

Financing: Buyer to secure; seller open to strategic or mission-aligned partnership discussions

Located in the heart of the city, this area offers a dynamic mix of historic charm and modern amenities.