Office Building with Development
For Sale
$525,000
2655 W Park Ave, Gray, LA 70359
Existing improvements offer a practical starting point for office conversion with substantial surrounding land for future expansion.
Property Size2,144 SF
Lot Size12.43 Acres
Price / SF$244.87
Days on Market52
Property Features for 2655 W Park Ave
General Information
Standard status
Active
Size
2,144 SF
Lot size
12.43 Acres
Zoning
Unzoned
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Land Use
residential, commercial, industrial
Amenities
garage
storage barn
Listing Agency:
KELLER WILLIAMS REALTY BAYOU P
(985) 872-4597
Listed By:
Hank Babin
Source:
Smithsquared
Added: Jul 10
Changed: Aug 29
Last Checked: Aug 25 at 5:28AM
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 KELLER WILLIAMS REALTY BAYOU P
Investment Insights
Based on property information with market context.
The property includes a 2,144-square-foot structure currently configured as a residence, with a layout that includes three private offices, a reception and waiting area, and a breakroom. A two-car garage and storage barn add functional support space. The existing improvements can serve as an office conversion while the larger tract accommodates future planning or redevelopment.
Located at 2655 W Park Ave in Gray, the property fronts LA Highway 24 and sits approximately ±2 miles north of U.S. Highway 90, also identified as future I-49. The 12.43-acre tract is unzoned, and more than two-thirds of the property lies within FEMA Flood Zone X. Batture frontage is also present, along with potential for visible signage and billboard revenue as described in the property information.
Located at 2655 W Park Ave in Gray, the property fronts LA Highway 24 and sits approximately ±2 miles north of U.S. Highway 90, also identified as future I-49. The 12.43-acre tract is unzoned, and more than two-thirds of the property lies within FEMA Flood Zone X. Batture frontage is also present, along with potential for visible signage and billboard revenue as described in the property information.
Key Highlights
- 2,144 SF structure configured with 3 private offices, reception/waiting area, and breakroom
- 12.43‑acre tract with room for expansion, phased development, or redevelopment
- Unzoned property offering flexible planning parameters
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
$33,604
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
6.40%
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%
$672,080
$672.1K
Cap Rate 7%
$480,057
$480.1K
Cap Rate 9%
$373,378
$373.4K
Market Conditions
NOI Build-Up for 2,144 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
$57.9K $27.00/SF
− Vacancy
−$13.1K −$6.10/SF
EGI
$44.8K $20.90/SF
− OpEx
−$11.2K −$5.22/SF
NOI
$33.6K $15.67/SF
Area
Terrebonne County, LA
Vacancy
22.60%
Lease Rate
$27.00 /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%
$672,080
Cap Rate 7%
$480,057
Cap Rate 9%
$373,378
Alternative Uses
Best Use
Office B
$480.1K
$420.1K – $560.1K
NOI $33,604 @ 7.0% cap · market cap 6.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$591.0K
$517.1K – $689.5K
NOI $41,371 @ 7.0% cap · market cap 7.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
27
Businesses Nearby
Explore this area
Business Placement
Demographics for 70359, LA
9,591
Population
3,768
Households
2.5
Avg Household Size
35
Median Age
14%
College-Educated
82%
High-School Grad
14.4 sq mi
ZIP Area
666
Density / Sq Mi
$54,139
Median Household Income
$33,058
Median Earnings
$1,119
Median Rent
$161,300
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 building - Existing improvements offer a practical starting point for office conversion with substantial surrounding land for future expansion.
Where is this office building located?
The property is located at 2655 W Park Ave Gray, LA.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: 2,144 SF structure configured with 3 private offices, reception/waiting area, and breakroom; 12.43‑acre tract with room for expansion, phased development, or redevelopment; Unzoned property offering flexible planning parameters
