Renovated Medical
For Sale
$1,189,000
56 Starbrush Cir, Covington, LA 70433
The property carries HC-2 zoning and is fully occupied under an NNN lease.
Property Size4,864 SF
Price / SF$244.45
Days on Market733
Property Features for 56 Starbrush Cir
General Information
Standard status
Active
Size
4,864 SF
Total Parking Spaces
44
Property subtype
Office
Zoning
HC-2
Amenities
44 Parking Spaces
Building Details
Year Built
2010
Listing Agency:
Coldwell Banker Commercial TEC Realtors
(504) 782-9373
Listed By:
Ron Patron · License #0995701890
(504) 782-9373
Source:
Lacdb.resimplifi
Added: Aug 28, 2024
Changed: Aug 29
Last Checked: Aug 30 at 1:22PM
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 Coldwell Banker Commercial TEC Realtors
Investment Insights
Based on property information with market context.
This medical office property was constructed in 2010 and renovated in 2019. The building contains one unit and is fully occupied under an NNN lease. HC-2 zoning is in place, providing the property’s stated commercial land-use designation.
The current lease runs through July 31, 2028, includes a 2% annual increase, and provides for an automatic 24-month renewal. The property is represented with a 7.75% cap rate. Two adjacent lots are also available separately at 50 Starbrush Circle and 60 Starbrush Circle, with 25,869 SF and 31,861 SF of buildable area, respectively.
The current lease runs through July 31, 2028, includes a 2% annual increase, and provides for an automatic 24-month renewal. The property is represented with a 7.75% cap rate. Two adjacent lots are also available separately at 50 Starbrush Circle and 60 Starbrush Circle, with 25,869 SF and 31,861 SF of buildable area, respectively.
Key Highlights
- Medical office building with one unit
- 100% occupancy under an NNN lease
- Lease runs through July 31, 2028
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
$61,204
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
5.15%
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%
$1,224,080
$1.2M
Cap Rate 7%
$874,343
$874.3K
Cap Rate 9%
$680,044
$680.0K
Market Conditions
NOI Build-Up for 4,864 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
$106.8K $21.96/SF
− Vacancy
−$4.8K −$0.99/SF
EGI
$102.0K $20.97/SF
− OpEx
−$40.8K −$8.39/SF
NOI
$61.2K $12.58/SF
Area
St. Tammany County, LA
Vacancy
4.50%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
40.00%
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%
$1,224,080
Cap Rate 7%
$874,343
Cap Rate 9%
$680,044
Alternative Uses
Best Use
Healthcare Medical
$874.3K
$765.1K – $1.02M
NOI $61,204 @ 7.0% cap · market cap 5.15%
Second Best
Office B
$788.5K
$689.9K – $919.9K
NOI $55,193 @ 7.0% cap · market cap 4.64%
Theoretical Best
Multifamily LT 5
$52.43M
$45.88M – $61.17M
NOI $3,670,413 @ 7.0% cap · market cap 308.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
663
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 70433, LA
41,423
Population
18,712
Households
2.2
Avg Household Size
42
Median Age
45%
College-Educated
93%
High-School Grad
48.7 sq mi
ZIP Area
851
Density / Sq Mi
$79,354
Median Household Income
$47,406
Median Earnings
$1,373
Median Rent
$316,200
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - The property carries HC-2 zoning and is fully occupied under an NNN lease.
Where is this medical office space located?
The property is located at 56 Starbrush Cir Covington, LA.
What is the asking price?
The asking price for this property is $1,189,000.
What are key features of this property?
This property features: Medical office building with one unit; 100% occupancy under an NNN lease; Lease runs through July 31, 2028
