44-Unit Rehabilitation
For Sale
$4,585,350
17010 Old Covington Hwy, Hammond, LA 70403
Behavioral health facility leased on a long-term NNN structure with scheduled rent increases.
Property Size33,047 SF
Lot Size4.80 Acres
Price / SF$138.75
Days on Market645
Property Features for 17010 Old Covington Hwy
General Information
Standard status
Active
Size
33,047 SF
Lot size
4.80 Acres
Property subtype
Other
Additional Details
Cap Rate
8%
Building Details
Year Built
1998
Tenancy
Single
Listing Agency:
JRE Brokerage
(225) 907-6028
Listed By:
Donnie Jarreau
(225) 907-6028
Source:
Lacdb.resimplifi
Added: Nov 21, 2024
Changed: Aug 28
Last Checked: Aug 28 at 8:50AM
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 JRE Brokerage
Investment Insights
Based on property information with market context.
Maples Behavioral Health Residential Center is a 33,047-square-foot rehabilitation facility completed in 1998. The property contains 44 units and is occupied under a newly executed 10-year NNN lease, with 8.5 years remaining. The lease provides 2% annual increases beginning in year 6.
The center sits on 4.8 acres at 17010 Old Covington Hwy in Hammond, Louisiana. Of the total site, 2.2 acres are identified as available for development. The lease structure, remaining term, and scheduled escalations provide defined operating terms for the property.
The center sits on 4.8 acres at 17010 Old Covington Hwy in Hammond, Louisiana. Of the total site, 2.2 acres are identified as available for development. The lease structure, remaining term, and scheduled escalations provide defined operating terms for the property.
Key Highlights
- 33,047‑square‑foot rehabilitation center completed in 1998
- 44‑unit Maples Behavioral Health Residential Center
- New 10‑year NNN lease with 8.5 years remaining
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
$391,885
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
8.55%
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%
$7,837,700
$7.8M
Cap Rate 7%
$5,598,357
$5.6M
Cap Rate 9%
$4,354,278
$4.4M
Market Conditions
NOI Build-Up for 33,047 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
$713.8K $21.60/SF
− Vacancy
−$60.7K −$1.84/SF
EGI
$653.1K $19.76/SF
− OpEx
−$261.3K −$7.91/SF
NOI
$391.9K $11.86/SF
Area
Tangipahoa County, LA
Vacancy
8.50%
Lease Rate
$21.60 /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%
$7,837,700
Cap Rate 7%
$5,598,357
Cap Rate 9%
$4,354,278
Alternative Uses
Best Use
Healthcare Medical
$5.60M
$4.90M – $6.53M
NOI $391,885 @ 7.0% cap · market cap 8.55%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.11M
$7.97M – $10.63M
NOI $637,694 @ 7.0% cap · market cap 13.91%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
196
Businesses Nearby
Explore this area
Business Placement
Demographics for 70403, LA
29,737
Population
13,577
Households
2.2
Avg Household Size
37
Median Age
24%
College-Educated
84%
High-School Grad
42.3 sq mi
ZIP Area
703
Density / Sq Mi
$50,547
Median Household Income
$32,603
Median Earnings
$992
Median Rent
$207,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Rehabilitation center - Behavioral health facility leased on a long-term NNN structure with scheduled rent increases.
Where is this rehabilitation center located?
The property is located at 17010 Old Covington Hwy Hammond, LA.
What is the asking price?
The asking price for this property is $4,585,350.
What are key features of this property?
This property features: 33,047‑square‑foot rehabilitation center completed in 1998; 44‑unit Maples Behavioral Health Residential Center; New 10‑year NNN lease with 8.5 years remaining
