Multi-Building Office
For Sale
$775,000
204 W 21st Ave, Covington, LA 70433
Two structures provide three separate leasing opportunities on one lot.
Property Size2,821 SF
Price / SF$274.73
Days on Market81
Property Features for 204 W 21st Ave
General Information
Standard status
Active
Size
2,821 SF
Additional Details
Office Units
3
Building Details
Buildings
2
Tenancy
Multi
Listing Agency:
High Road Properties, Inc.
(504) 669-8826
Listed By:
Beverly Hobbs Shea · License #000010655
(504) 669-8826
Source:
Exprealty
Added: Jun 3
Changed: Aug 21
Last Checked: Aug 21 at 12:56PM
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 High Road Properties, Inc.
Investment Insights
Based on property information with market context.
This office property comprises two buildings on a single lot, with three separate leasing opportunities. The 204 W 21st Ave building contains two suites, estimated at 725 SF and 802 SF, and both suites are currently occupied. The second building, at 111 N Madison Ave, is estimated at 1,364 ft and is currently vacant. Its layout includes approximately three separate rooms, a bathroom, and an open area, with off-street parking. The property is located in downtown Covington and includes addresses at 204 W 21st Ave and 111 N Madison Ave.
Key Highlights
- Two buildings on one lot with three separate leasing opportunities
- 204 W 21st Ave includes two suites estimated at 725 SF and 802 SF
- Both suites at 204 W 21st Ave are currently occupied
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
$32,011
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
4.13%
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%
$640,220
$640.2K
Cap Rate 7%
$457,300
$457.3K
Cap Rate 9%
$355,678
$355.7K
Market Conditions
NOI Build-Up for 2,821 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
$55.2K $19.56/SF
− Vacancy
−$12.5K −$4.43/SF
EGI
$42.7K $15.13/SF
− OpEx
−$10.7K −$3.78/SF
NOI
$32.0K $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%
$640,220
Cap Rate 7%
$457,300
Cap Rate 9%
$355,678
Alternative Uses
Best Use
Office B
$457.3K
$400.1K – $533.5K
NOI $32,011 @ 7.0% cap · market cap 4.13%
Second Best
Retail
$404.1K
$353.6K – $471.5K
NOI $28,288 @ 7.0% cap · market cap 3.65%
Theoretical Best
Multifamily LT 5
$30.41M
$26.61M – $35.48M
NOI $2,128,749 @ 7.0% cap · market cap 274.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,664
Businesses Nearby
Explore this area
Business Placement
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Two structures provide three separate leasing opportunities on one lot.
Where is this office units located?
The property is located at 204 W 21st Ave Covington, LA.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: Two buildings on one lot with three separate leasing opportunities; 204 W 21st Ave includes two suites estimated at 725 SF and 802 SF; Both suites at 204 W 21st Ave are currently occupied
