Eight-Unit Apartment
For Sale
Contact for pricing
2906 2Nd Ave Avenue, Lake Charles, LA 70601
Eight fully occupied 1-bedroom, 1-bath units near Memorial Hospital, offering steady rental income for investors.
Property Size5,000 SF
Price / SF$95
Days on Market55
Property Features for 2906 2Nd Ave Avenue
General Information
Standard status
Active
Size
5,000 SF
Property subtype
Multifamily
Occupancy
100%
Additional Details
Business Included
Yes
Multifamily Units
8
Building Details
Year Built
1960
Buildings
1
Listing Agency:
Castle Real Estate, Inc.
(337) 425-2196
Listed By:
Timothy W Castle · License #LA
Source:
Crexi
Added: Jun 19
Changed: Aug 8
Last Checked: Aug 10 at 3:39PM
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 Castle Real Estate, Inc.
Investment Insights
Based on property information with market context.
This eight-unit apartment building consists of eight 1-bedroom, 1-bath units, currently fully occupied. The property is described as easy to maintain and is presented as an income-producing multifamily asset with an established rental history.
Located in central Lake Charles, the building is noted as being next to Memorial Hospital, placing it near healthcare and other day-to-day demand drivers. The offering is positioned around its central placement and tenant appeal tied to nearby employment and services.
For investors or owner-operators seeking a small, straightforward multifamily configuration, this property provides immediate occupancy with all units in the same 1-bedroom, 1-bath mix. Its fully occupied status and consistent rental performance are highlighted as key factors for buyers looking for a turnkey income approach rather than a value-add conversion. The building’s unit count and repeatable unit type can also simplify management compared with more varied floorplans.
Located in central Lake Charles, the building is noted as being next to Memorial Hospital, placing it near healthcare and other day-to-day demand drivers. The offering is positioned around its central placement and tenant appeal tied to nearby employment and services.
For investors or owner-operators seeking a small, straightforward multifamily configuration, this property provides immediate occupancy with all units in the same 1-bedroom, 1-bath mix. Its fully occupied status and consistent rental performance are highlighted as key factors for buyers looking for a turnkey income approach rather than a value-add conversion. The building’s unit count and repeatable unit type can also simplify management compared with more varied floorplans.
Key Highlights
- 8‑unit apartment building built in 1960 in Central Lake Charles
- All units are 1 bedroom, 1 bathroom (8 total units)
- Property is fully occupied with steady rental income
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
$29,218
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
6.15%
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%
$584,360
$584.4K
Cap Rate 7%
$417,400
$417.4K
Cap Rate 9%
$324,644
$324.6K
Market Conditions
NOI Build-Up for 5,000 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
$57.0K $11.40/SF
− Vacancy
−$3.9K −$0.78/SF
EGI
$53.1K $10.62/SF
− OpEx
−$23.9K −$4.78/SF
NOI
$29.2K $5.84/SF
Area
Calcasieu County, LA
Vacancy
6.80%
Lease Rate
$11.40 /SF/Yr
Expense Ratio
45.00%
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%
$584,360
Cap Rate 7%
$417,400
Cap Rate 9%
$324,644
Alternative Uses
Best Use
Apartment 5plus
$417.4K
$365.2K – $487.0K
NOI $29,218 @ 7.0% cap · market cap 6.15%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.08M
$943.0K – $1.26M
NOI $75,443 @ 7.0% cap · market cap 15.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
100%
Occupancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
784
Businesses Nearby
Explore this area
Business Placement
Demographics for 70601, LA
34,571
Population
16,811
Households
2.1
Avg Household Size
38
Median Age
25%
College-Educated
87%
High-School Grad
16.1 sq mi
ZIP Area
2,147
Density / Sq Mi
$49,545
Median Household Income
$34,044
Median Earnings
$938
Median Rent
$164,300
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?
Apartment building - Eight fully occupied 1-bedroom, 1-bath units near Memorial Hospital, offering steady rental income for investors.
Where is this apartment building located?
The property is located at 2906 2Nd Ave Avenue Lake Charles, LA.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 8‑unit apartment building built in 1960 in Central Lake Charles; All units are 1 bedroom, 1 bathroom (8 total units); Property is fully occupied with steady rental income
