Freestanding Restaurant with
For Sale
$400,000
5363 Franklin Ave, New Orleans, LA 70122
Former restaurant building with patio seating, a liquor license, commercial kitchen equipment, solar generation, and battery backup.
Property Size1,606 SF
Lot Size0.17 Acres
Price / SF$249.07
Days on Market376
Property Features for 5363 Franklin Ave
General Information
Standard status
Active
Size
1,606 SF
Total Parking Spaces
6
Lot size
0.17 Acres
Property subtype
Retail
Zoning
AE
Restaurant
Patio
Yes
Equipment Included
Yes
Liquor License
Yes
Additional Details
Furnished
Yes
Amenities
solar panels with Tesla Powerwall battery backup
Water
Sewer
Natural Gas
6 Parking Spaces
Building Details
Year Built
1970
Listing Agency:
Rayford Realty NOLA LLC
(504) 584-7355
Listed By:
Jiarra Rayford · License #995704350
(504) 584-7355
Source:
Lacdb.resimplifi
Added: Aug 21, 2025
Changed: Aug 30
Last Checked: Aug 26 at 12:19PM
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 Rayford Realty NOLA LLC
Investment Insights
Based on property information with market context.
This freestanding 1,606-square-foot restaurant property includes outdoor patio seating, a liquor license, selected kitchen and bar equipment, tables, chairs, and solar panels paired with a Tesla Powerwall battery system. The equipment package includes four front fridges, a bar refrigerator, stove, and fryer. Built in 1970, the property occupies a rectangular lot measuring approximately 7,437 square feet, with dimensions of 51x134 and a loading dock.
Located along the Gentilly corridor at 5363 Franklin Avenue, the property is surrounded by residential and commercial activity and sits within 5 minutes of major thoroughfares and retail destinations. The site is identified as AE zoning and flood zone AE; intended use should be confirmed. Equipment and furnishings in the barbershop space are excluded.
Located along the Gentilly corridor at 5363 Franklin Avenue, the property is surrounded by residential and commercial activity and sits within 5 minutes of major thoroughfares and retail destinations. The site is identified as AE zoning and flood zone AE; intended use should be confirmed. Equipment and furnishings in the barbershop space are excluded.
Key Highlights
- 1,606 SF freestanding restaurant property
- Liquor license included with the sale
- Solar panels with Tesla Powerwall battery backup
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
$27,752
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
6.94%
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%
$555,040
$555.0K
Cap Rate 7%
$396,457
$396.5K
Cap Rate 9%
$308,356
$308.4K
Market Conditions
NOI Build-Up for 1,606 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
$38.5K $24.00/SF
− Vacancy
−$1.5K −$0.96/SF
EGI
$37.0K $23.04/SF
− OpEx
−$9.3K −$5.76/SF
NOI
$27.8K $17.28/SF
Area
ZIP 70122
Vacancy
4.00%
Lease Rate
$24.00 /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%
$555,040
Cap Rate 7%
$396,457
Cap Rate 9%
$308,356
Alternative Uses
Best Use
Specialty Retail
$396.5K
$346.9K – $462.5K
NOI $27,752 @ 7.0% cap · market cap 6.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$420.2K
$367.7K – $490.3K
NOI $29,417 @ 7.0% cap · market cap 7.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
291
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 70122, LA
34,986
Population
17,131
Households
2
Avg Household Size
39
Median Age
37%
College-Educated
89%
High-School Grad
6.3 sq mi
ZIP Area
5,553
Density / Sq Mi
$47,613
Median Household Income
$38,248
Median Earnings
$1,196
Median Rent
$274,700
Median Home Value
Market
Vacancy Rate% for Retail in New Orleans, LA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Former restaurant building with patio seating, a liquor license, commercial kitchen equipment, solar generation, and battery backup.
Where is this conventional restaurant located?
The property is located at 5363 Franklin Ave New Orleans, LA.
What is the asking price?
The asking price for this property is $400,000.
What are key features of this property?
This property features: 1,606 SF freestanding restaurant property; Liquor license included with the sale; Solar panels with Tesla Powerwall battery backup
