Faubourg Marigny Mixed-Use
For Sale
Contact for pricing
2440 Chartres St, New Orleans, LA 70117
Furnished restaurant with updated apartment in vibrant neighborhood.
Property Size2,596 SF
Price / SF$246.53
Days on Market160
Property Features for 2440 Chartres St
General Information
Standard status
Active
Size
2,596 SF
Property subtype
Hospitality, Mixed Use, Office, Retail
Zoning
HMC-1
Lease Type
NNN
Building Details
Year Built
1912
Year Renovated
2020
Stories
2
Units
2
Listing Agency:
Dorian Bennett Sotheby's International Realty
(504) 452-4677
Listed By:
Michael Bain · License #57496
Source:
Crexi
Added: Mar 5
Changed: Aug 8
Last Checked: Aug 11 at 6:45PM
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 Dorian Bennett Sotheby's International Realty
Investment Insights
Based on property information with market context.
This mixed-use property in Faubourg Marigny features a furnished restaurant with indoor seating for approximately 40 and outdoor seating for around 20. The corner location enhances visibility. The kitchen equipment has been recently steam cleaned, and all kitchen equipment, appliances, and dining room furnishings are included. The property also includes a recently updated second-floor apartment with 2 bedrooms and 1 bath. The apartment features heart pine floors, large windows, and high ceilings. A washer and dryer are included, and all appliances remain. The property size is 2596 square feet.
Key Highlights
- Furnished restaurant with indoor and outdoor seating included.
- Updated 2‑bedroom apartment on the second floor.
- Prime corner location in Faubourg Marigny.
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
$36,635
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
5.72%
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%
$732,700
$732.7K
Cap Rate 7%
$523,357
$523.4K
Cap Rate 9%
$407,056
$407.1K
Market Conditions
NOI Build-Up for 2,596 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
$49.8K $19.20/SF
− Vacancy
−$997 −$0.38/SF
EGI
$48.8K $18.82/SF
− OpEx
−$12.2K −$4.70/SF
NOI
$36.6K $14.11/SF
Area
New Orleans, LA
Vacancy
2.00%
Lease Rate
$19.20 /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%
$732,700
Cap Rate 7%
$523,357
Cap Rate 9%
$407,056
Alternative Uses
Best Use
Specialty Retail
$523.4K
$457.9K – $610.6K
NOI $36,635 @ 7.0% cap · market cap 5.72%
Second Best
Mixed Use
$500.7K
$438.1K – $584.1K
NOI $35,046 @ 7.0% cap · market cap 5.48%
Theoretical Best
Office A
$659.8K
$577.3K – $769.8K
NOI $46,187 @ 7.0% cap · market cap 7.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,874
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 70117, LA
28,528
Population
15,821
Households
1.8
Avg Household Size
38
Median Age
35%
College-Educated
89%
High-School Grad
5.5 sq mi
ZIP Area
5,187
Density / Sq Mi
$41,645
Median Household Income
$31,744
Median Earnings
$1,191
Median Rent
$247,600
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Furnished restaurant with updated apartment in vibrant neighborhood.
Where is this conventional restaurant located?
The property is located at 2440 Chartres St New Orleans, LA.
What is the asking price?
The asking price for this property is $640,000.
What are key features of this property?
This property features: Furnished restaurant with indoor and outdoor seating included.; Updated 2‑bedroom apartment on the second floor.; Prime corner location in Faubourg Marigny.
