Restaurant Building with
For Sale
$2,950,000
7497 Pinnacle Pkwy, Covington, LA 70433
Restaurant property positioned near major retail, dining, and automotive operators in a commercial corridor.
Property Size7,739 SF
Price / SF$381.19
Days on Market1061
Property Features for 7497 Pinnacle Pkwy
General Information
Standard status
Active
Size
7,739 SF
Total Parking Spaces
89
Property subtype
Retail
Additional Details
Highway Access
Yes
Amenities
Vacant
89 Parking Spaces
Listing Agency:
Corporate Realty - Main Office
(504) 432-1232
Listed By:
Austin Lavin · License #SALE.0000042127-ACT
(504) 432-1232
Source:
Lacdb.resimplifi
Added: Oct 5, 2023
Changed: Aug 29
Last Checked: Aug 29 at 6:20PM
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 Corporate Realty - Main Office
Investment Insights
Based on property information with market context.
Located at 7497 Pinnacle Pkwy, this 7,739-square-foot restaurant property was originally constructed for Saltgrass Steakhouse. The site includes 89 parking spaces and is configured for restaurant operations.
The property occupies a position between two I-12 interchanges: the Pinnacle Pkwy/I-12 interchange lies to the east, while the Hwy 21/I-12 interchange is approximately half a mile west. A retail center in front of the property includes Kohl’s, Hobby Lobby, Academy Sports, Petco, a 159,000-sf Costco, and Floor & Decor. Nearby outparcels include Olive Garden, Texas Roadhouse, and Cracker Barrel, with a Mercedes-Benz dealership across Pinnacle Parkway.
The property occupies a position between two I-12 interchanges: the Pinnacle Pkwy/I-12 interchange lies to the east, while the Hwy 21/I-12 interchange is approximately half a mile west. A retail center in front of the property includes Kohl’s, Hobby Lobby, Academy Sports, Petco, a 159,000-sf Costco, and Floor & Decor. Nearby outparcels include Olive Garden, Texas Roadhouse, and Cracker Barrel, with a Mercedes-Benz dealership across Pinnacle Parkway.
Key Highlights
- 7,739‑square‑foot restaurant property
- Originally built as a Saltgrass Steakhouse
- 89 parking spaces
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
$138,355
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
4.69%
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%
$2,767,100
$2.8M
Cap Rate 7%
$1,976,500
$2.0M
Cap Rate 9%
$1,537,278
$1.5M
Market Conditions
NOI Build-Up for 7,739 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
$193.2K $24.96/SF
− Vacancy
−$8.7K −$1.12/SF
EGI
$184.5K $23.84/SF
− OpEx
−$46.1K −$5.96/SF
NOI
$138.4K $17.88/SF
Area
St. Tammany County, LA
Vacancy
4.50%
Lease Rate
$24.96 /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%
$2,767,100
Cap Rate 7%
$1,976,500
Cap Rate 9%
$1,537,278
Alternative Uses
Best Use
Specialty Retail
$1.98M
$1.73M – $2.31M
NOI $138,355 @ 7.0% cap · market cap 4.69%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$83.43M
$73.00M – $97.33M
NOI $5,839,911 @ 7.0% cap · market cap 197.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
849
Businesses Nearby
891k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 23%
Superstores 23%
Dining 22%
Shops & Services 19%
Target
Superstores
108,624 visits/mo
0.5 miles
Sam's Club
Superstores
97,135 visits/mo
0.4 miles
Academy Sports + Outdoors
Apparel
78,745 visits/mo
0.5 miles
Hobby Lobby
Shops & Services
44,221 visits/mo
0.4 miles
Winn-Dixie
Groceries
43,591 visits/mo
0.4 miles
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 Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant property positioned near major retail, dining, and automotive operators in a commercial corridor.
Where is this conventional restaurant located?
The property is located at 7497 Pinnacle Pkwy Covington, LA.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: 7,739‑square‑foot restaurant property; Originally built as a Saltgrass Steakhouse; 89 parking spaces
