Listing Agency: Boutique National, LLC (Bounat) Show Phone

Listed By: Nick Ganey · License #SL3145813 Show Phone

Source: Moodyscre

Added: Apr 6 Changed: Sep 3 Last Checked: Sep 8 at 10:14AM

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Investment Insights

Based on property information with market context.

This office property is offered as an absolute net lease, placing zero landlord responsibilities on the owner. The current net operating income is $166,649.21, based on $25.82 per square foot, with 1.5% annual escalations. The lease is scheduled to expire September 7, 2029, and includes two additional five-year renewal options.

The property is located at 148 Hector Ave, Terrytown, LA 70056, totaling 6,455 square feet.

The existing lease structure provides defined term and escalation provisions through the current expiration date, with extension opportunities via the renewal options.

Key Highlights

• Absolute net lease office building with zero landlord responsibilities
• NOI of $166,649.21 ($25.82 PSF)
• Lease expires September 7, 2029

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

$89,559

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

3.76%

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%

$1,791,180 $1.8M

Cap Rate 7%

$1,279,414 $1.3M

Cap Rate 9%

$995,100 $995.1K

Market Conditions

NOI Build-Up for 6,455 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

$145.6K $22.56/SF

− Vacancy

−$26.2K −$4.06/SF

EGI

$119.4K $18.50/SF

− OpEx

−$29.9K −$4.62/SF

NOI

$89.6K $13.87/SF

Area

Jefferson County, LA

Vacancy

18.00%

Lease Rate

$22.56 /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%

$1,791,180

Cap Rate 7%

$1,279,414

Cap Rate 9%

$995,100

Alternative Uses

Best Use

Office B

$1.28M

$1.12M – $1.49M (±1% cap)

NOI $89,559 @ 7.0% cap · market cap 3.76%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.70M

$1.49M – $1.99M (±1% cap)

NOI $119,211 @ 7.0% cap · market cap 5.01%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

DaVita Oakwood Dialysis ... Medical Clinic

Suggested Use

Top Pick Real Estate Agency Building Supply Dental Office Big Box & Wholesale Store Auto Parts Store Storage Facility

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

1,770

Businesses Nearby

Explore this area Business Placement

Demographics for 70056, LA

41,498

Population

15,784

Households

2.6

Avg Household Size

36

Median Age

28%

College-Educated

87%

High-School Grad

6.8 sq mi

ZIP Area

6,103

Density / Sq Mi

$61,831

Median Household Income

$36,062

Median Earnings

$1,163

Median Rent

$223,000

Median Home Value

Market

Vacancy Rate% for Office in South region

14.4% 2019

16.4% 2020

17.3% 2021

18% 2022

18.6% 2023

20.3% 2024

20.2% 2025

Questions? Ask Rey

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What type of property is this? Where is this office buildings located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Office building - Absolute net lease office building with lease expiring September 7, 2029 and two renewal options.

Where is this office building located?

The property is located at 148 Hector Ave Terrytown, LA.

What is the asking price?

The asking price for this property is $2,380,703.

What are key features of this property?

This property features: Absolute net lease office building with zero landlord responsibilities; NOI of $166,649.21 ($25.82 PSF); Lease expires September 7, 2029