Nicholson Drive Mixed-Use Development
For Sale
Contact for pricing
1564 Nicholson Dr, Baton Rouge, LA 70802
2.048 acres between Downtown Baton Rouge and LSU.
Property Size13,500 SF
Lot Size2.05 Acres
Price / SF$165.21
Days on Market2267
Property Features for 1564 Nicholson Dr
General Information
Standard status
Active
Size
13,500 SF
Lot size
2.05 Acres
Property subtype
Retail, Multifamily, Hospitality, Land
Zoning
C2
Listing Agency:
CBRE - Baton Rouge
(225) 247-3770
Listed By:
Ty Gose · License #LA SALE.0000070995-ACT
Source:
Crexi
Added: May 27, 2020
Changed: Aug 9
Last Checked: May 19 at 11:39PM
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 CBRE - Baton Rouge
Investment Insights
Based on property information with market context.
This property features approximately 2.048 acres on Nicholson Drive, situated between Downtown Baton Rouge and Louisiana State University. It benefits from roughly 258 feet of frontage on Nicholson Drive and is located within an Opportunity Zone. The site includes an existing building of approximately 13,500 square feet on the north side, with the remaining area comprising an asphalt and gravel surface lot. A curb-cut at McClung Street provides full access from Nicholson Drive. Currently zoned C1, C2, C-AB-2, and M1, future land use plans anticipate a zoning change to Mixed-Use. The property's strategic location places it between Baton Rouge's two largest employment centers: the Downtown CBD and Louisiana State University. Nicholson Drive serves as a key link between these areas. Just north is The Water Campus, a 35-acre research and development business park focused on water issues, and the River House development, featuring over 220 luxury apartments. To the south, over 40 acres of assembled parcels were planned for The River District project. Further south, near the LSU Campus, is the 28-acre Nicholson Gateway development, a mixed-use student housing and retail area with over 1,500 beds and 50,000 square feet of retail space.
Key Highlights
- Strategic location between Downtown Baton Rouge and Louisiana State University (LSU).
- +/- 2.048 Acres with +/- 258' of frontage on Nicholson Drive.
- Located within an Opportunity Zone.
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
$126,360
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
5.67%
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%
$2,527,200
$2.5M
Cap Rate 7%
$1,805,143
$1.8M
Cap Rate 9%
$1,404,000
$1.4M
Market Conditions
NOI Build-Up for 13,500 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
$210.6K $15.60/SF
− Vacancy
−$8.4K −$0.62/SF
EGI
$202.2K $14.98/SF
− OpEx
−$75.8K −$5.62/SF
NOI
$126.4K $9.36/SF
Area
Baton Rouge, LA
Vacancy
4.00%
Lease Rate
$15.60 /SF/Yr
Expense Ratio
37.50%
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%
$2,527,200
Cap Rate 7%
$1,805,143
Cap Rate 9%
$1,404,000
Alternative Uses
Best Use
Mixed Use
$1.81M
$1.58M – $2.11M
NOI $126,360 @ 7.0% cap · market cap 5.67%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.23M
$2.83M – $3.77M
NOI $226,319 @ 7.0% cap · market cap 10.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
915
Businesses Nearby
Explore this area
Business Placement
Demographics for 70802, LA
26,519
Population
13,887
Households
1.9
Avg Household Size
29
Median Age
24%
College-Educated
82%
High-School Grad
7.1 sq mi
ZIP Area
3,735
Density / Sq Mi
$34,082
Median Household Income
$23,215
Median Earnings
$935
Median Rent
$105,100
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - 2.048 acres between Downtown Baton Rouge and LSU.
Where is this commercial land located?
The property is located at 1564 Nicholson Dr Baton Rouge, LA.
What is the asking price?
The asking price for this property is $2,230,272.
What are key features of this property?
This property features: Strategic location between Downtown Baton Rouge and Louisiana State University (LSU).; +/- 2.048 Acres with +/- 258' of frontage on Nicholson Drive.; Located within an Opportunity Zone.
