Garden District Mixed-Use
For Sale
$925,000
1418 Magazine St, New Orleans, LA 70130
Mixed-use property in the Garden District with commercial and residential units.
Property Size3,174 SF
Price / SF$291.43
Days on Market274
Property Features for 1418 Magazine St
General Information
Standard status
Active
Size
3,174 SF
Property subtype
Retail
Building Details
Building Size
3,174 SF
Year Built
1870
Listing Agency:
NAI Rampart Commercial Real Estate New Orleans
(504) 401-4900
Listed By:
Eli Gunesebakan, CCIM, SIOR
(504) 401-4900
Source:
Naiglobal
Added: Nov 21, 2025
Changed: Aug 22
Last Checked: Aug 22 at 4:48AM
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 NAI Rampart Commercial Real Estate New Orleans
Investment Insights
Based on property information with market context.
The property at 1418 Magazine St is a mixed-use building featuring three fully occupied units: one commercial and two residential. The downstairs unit is leased to Surrey's Cafe, a restaurant that has been in operation for over 18 years, with the current lease extending through 2026. The two residential units occupy the entire second floor, each including balconies and exterior space that overlook Magazine Street. The property is located in the Garden District, offering close proximity to the New Orleans CBD and major tourism locations. The property is fully occupied and has potential for rent increases. The property size is 3174 square feet.
Key Highlights
- Prime Garden District location on Magazine Street
- Mixed‑use property with commercial and residential units
- Fully occupied with established tenant (Surrey's Cafe) leased through 2026
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
$44,791
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
4.84%
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%
$895,820
$895.8K
Cap Rate 7%
$639,871
$639.9K
Cap Rate 9%
$497,678
$497.7K
Market Conditions
NOI Build-Up for 3,174 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
$60.9K $19.20/SF
− Vacancy
−$1.2K −$0.38/SF
EGI
$59.7K $18.82/SF
− OpEx
−$14.9K −$4.70/SF
NOI
$44.8K $14.11/SF
Area
New Orleans, LA
Vacancy
2.00%
Lease Rate
$19.20 /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%
$895,820
Cap Rate 7%
$639,871
Cap Rate 9%
$497,678
Alternative Uses
Best Use
Specialty Retail
$639.9K
$559.9K – $746.5K
NOI $44,791 @ 7.0% cap · market cap 4.84%
Second Best
Mixed Use
$612.1K
$535.6K – $714.2K
NOI $42,849 @ 7.0% cap · market cap 4.63%
Theoretical Best
Office A
$806.7K
$705.9K – $941.2K
NOI $56,471 @ 7.0% cap · market cap 6.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,416
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 70130, LA
14,521
Population
10,927
Households
1.3
Avg Household Size
38
Median Age
64%
College-Educated
92%
High-School Grad
2.1 sq mi
ZIP Area
6,915
Density / Sq Mi
$82,758
Median Household Income
$52,492
Median Earnings
$1,410
Median Rent
$529,300
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?
Conventional restaurant - Mixed-use property in the Garden District with commercial and residential units.
Where is this conventional restaurant located?
The property is located at 1418 Magazine St New Orleans, LA.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: Prime Garden District location on Magazine Street; Mixed‑use property with commercial and residential units; Fully occupied with established tenant (Surrey's Cafe) leased through 2026
