Mixed-Use Property with Gravel
For Sale
$245,000
Pending
4516-4518 Downman Rd, New Orleans, LA 70126
Mixed-use asset combining apartments, commercial space, and a rear gravel yard under S-B2 zoning.
Property Size2,414 SF
Days on Market639
Property Features for 4516-4518 Downman Rd
General Information
Standard status
Pending
Size
2,414 SF
Property subtype
Retail
Zoning
S-B2
Additional Details
Multifamily Units
2
Amenities
Power
Water
Natural Gas
Listing Agency:
Keller Williams Realty New Orleans
(504) 460-5957
Listed By:
Jared Zeller · License #0995691614
(504) 460-5957
Source:
Lacdb.resimplifi
Added: Nov 29, 2024
Changed: Aug 28
Last Checked: Aug 29 at 5:52AM
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 Keller Williams Realty New Orleans
Investment Insights
Based on property information with market context.
This mixed-use property contains two residential apartments and a commercial unit, with a gravel yard extending behind the structures. The commercial space is occupied by a phone store, and the tenant has recently executed a lease that includes escalations. Select appliances are included in the sale, and the buildings feature newer roofing along with central air conditioning and heating.
The rear yard measures over 20,000 square feet and provides exterior storage or laydown capacity. The property is zoned S-B2, and the residential apartments have maintained HANO approval for many years. An additional vacant property at 4522 Downman is also referenced in the offering and may be available as part of a package with 4516-4518 Downman Road.
The rear yard measures over 20,000 square feet and provides exterior storage or laydown capacity. The property is zoned S-B2, and the residential apartments have maintained HANO approval for many years. An additional vacant property at 4522 Downman is also referenced in the offering and may be available as part of a package with 4516-4518 Downman Road.
Key Highlights
- Two residential apartments plus one commercial unit
- Over 20,000 sq ft gravel lot behind the structures
- Commercial unit occupied by a phone store tenant
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
$19,011
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
7.76%
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%
$380,220
$380.2K
Cap Rate 7%
$271,586
$271.6K
Cap Rate 9%
$211,233
$211.2K
Market Conditions
NOI Build-Up for 2,414 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
$37.4K $15.48/SF
− Vacancy
−$2.8K −$1.16/SF
EGI
$34.6K $14.32/SF
− OpEx
−$15.6K −$6.44/SF
NOI
$19.0K $7.88/SF
Area
ZIP 70126
Vacancy
7.50%
Lease Rate
$15.48 /SF/Yr
Expense Ratio
45.00%
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%
$380,220
Cap Rate 7%
$271,586
Cap Rate 9%
$211,233
Alternative Uses
Best Use
Retail
$545.1K
$476.9K – $635.9K
NOI $38,154 @ 7.0% cap · market cap 15.57%
Second Best
Mixed Use
$465.6K
$407.4K – $543.2K
NOI $32,589 @ 7.0% cap · market cap 13.30%
Theoretical Best
Office A
$633.2K
$554.0K – $738.7K
NOI $44,321 @ 7.0% cap · market cap 18.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
346
Businesses Nearby
15k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 43%
Home Improvements & Furnishings 30%
Electronics 15%
Dining 12%
Shell
Shops & Services
5,293 visits/mo
0.4 miles
Eddie's Ace Hardware Inc
Home Improvements & Furnishings
4,562 visits/mo
0.2 miles
Domino's Pizza
Dining
1,831 visits/mo
0.4 miles
Boost Mobile
Electronics
1,506 visits/mo
0.2 miles
U-Haul Neighborhood Dealer
Shops & Services
1,127 visits/mo
0.4 miles
Demographics for 70126, LA
30,397
Population
12,686
Households
2.4
Avg Household Size
33
Median Age
24%
College-Educated
87%
High-School Grad
12.1 sq mi
ZIP Area
2,512
Density / Sq Mi
$38,229
Median Household Income
$29,510
Median Earnings
$1,118
Median Rent
$187,300
Median Home Value
Market
Vacancy Rate% for Retail in New Orleans, LA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use asset combining apartments, commercial space, and a rear gravel yard under S-B2 zoning.
Where is this mixed-use property located?
The property is located at 4516-4518 Downman Rd New Orleans, LA.
What is the asking price?
The asking price for this property is $245,000.
What are key features of this property?
This property features: Two residential apartments plus one commercial unit; Over 20,000 sq ft gravel lot behind the structures; Commercial unit occupied by a phone store tenant
