Class A Office
For Sale
$12,500,000
Pending
1625 W Causeway Approach, Mandeville, LA 70471
Professional headquarters space includes an air-conditioned warehouse, private fountain garden, and capacity for future expansion.
Property Size52,000 SF
Days on Market648
Property Features for 1625 W Causeway Approach
General Information
Standard status
Pending
Size
52,000 SF
Class
Trophy
Total Parking Spaces
246
Property subtype
Office
Amenities
private fountain garden
full building generator
Building Details
Buildings
1
Parking Ratio
5 per 1,000 SF
Listing Agency:
SRSA Commercial Real Estate
(504) 362-7294
Listed By:
Sandra Corrigan
(504) 362-7294
Source:
Lacdb.resimplifi
Added: Nov 21, 2024
Changed: Aug 29
Last Checked: Aug 31 at 1:31PM
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 SRSA Commercial Real Estate
Investment Insights
Based on property information with market context.
The Gray Building is a Class A office property containing approximately 52,000 square feet of office space in Mandeville, Louisiana. The building includes a private fountain garden, 3,000 SF of air-conditioned warehouse space, and ceiling heights ranging from 14 to 20 feet. A full-building generator serves lights and outlets, with provisions for a temporary generator to operate the HVAC system.
The property provides 246 parking spaces at a 5:1,000 ratio. The building can be expanded, and the site may accommodate an additional building. The entire property could potentially be made available to an owner-user, supporting a single-occupant corporate configuration. Located at 1625 W Causeway Approach, the property offers a substantial office footprint with supporting warehouse and site improvements.
The property provides 246 parking spaces at a 5:1,000 ratio. The building can be expanded, and the site may accommodate an additional building. The entire property could potentially be made available to an owner-user, supporting a single-occupant corporate configuration. Located at 1625 W Causeway Approach, the property offers a substantial office footprint with supporting warehouse and site improvements.
Key Highlights
- Approximately 52,000 square feet of Class A office space
- 3,000 SF of air‑conditioned warehouse space
- 246 parking spaces with a 5:1,000 ratio
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
$590,057
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
4.72%
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%
$11,801,140
$11.8M
Cap Rate 7%
$8,429,386
$8.4M
Cap Rate 9%
$6,556,189
$6.6M
Market Conditions
NOI Build-Up for 52,000 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
$1.02M $19.56/SF
− Vacancy
−$230.4K −$4.43/SF
EGI
$786.7K $15.13/SF
− OpEx
−$196.7K −$3.78/SF
NOI
$590.1K $11.35/SF
Area
St. Tammany County, LA
Vacancy
22.65%
Lease Rate
$19.56 /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%
$11,801,140
Cap Rate 7%
$8,429,386
Cap Rate 9%
$6,556,189
Alternative Uses
Best Use
Office B
$8.43M
$7.38M – $9.83M
NOI $590,057 @ 7.0% cap · market cap 4.72%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$560.57M
$490.50M – $653.99M
NOI $39,239,617 @ 7.0% cap · market cap 313.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
873
Businesses Nearby
Explore this area
Business Placement
Demographics for 70471, LA
23,334
Population
10,341
Households
2.3
Avg Household Size
43
Median Age
52%
College-Educated
96%
High-School Grad
28.9 sq mi
ZIP Area
807
Density / Sq Mi
$96,510
Median Household Income
$52,523
Median Earnings
$1,282
Median Rent
$370,100
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?
Office building - Professional headquarters space includes an air-conditioned warehouse, private fountain garden, and capacity for future expansion.
Where is this office building located?
The property is located at 1625 W Causeway Approach Mandeville, LA.
What is the asking price?
The asking price for this property is $12,500,000.
What are key features of this property?
This property features: Approximately 52,000 square feet of Class A office space; 3,000 SF of air‑conditioned warehouse space; 246 parking spaces with a 5:1,000 ratio
