Townhouse-Style Duplex with
For Sale
$699,000
725-27 Desire St, New Orleans, LA 70117
Tenant-occupied duplex in New Orleans’ Bywater neighborhood with HMR-3 zoning.
Property Size1,882 SF
Price / SF$371.41
Days on Market30
Property Features for 725-27 Desire St
General Information
Standard status
Active
Size
1,882 SF
Property subtype
Multi-Family
Zoning
HMR-3
Additional Details
Multifamily Units
2
Amenities
in-ground pool
Building Details
Year Built
2020
Construction
Townhouse Style
Listing Agency:
REVE, REALTORS
(504) 884-3893
Listed By:
Phillipa Bowers
Source:
Fiorellaavenue
Added: Aug 2
Changed: Aug 28
Last Checked: Aug 30 at 8:02PM
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 REVE, REALTORS
Investment Insights
Based on property information with market context.
This 1,882-square-foot duplex was constructed in 2020 in a townhouse-style configuration and includes an in-ground pool. The property is currently tenant occupied and carries HMR-3 zoning.
Located in New Orleans’ Bywater neighborhood, the property is near the French Quarter, Marigny, and CBD. Satsuma, Alma, Bywater Bakery, Elizabeth’s, and The Country Club are within walking distance. The offering is paired with 3400 Desire St., listed under MLS No. 2488068.
Located in New Orleans’ Bywater neighborhood, the property is near the French Quarter, Marigny, and CBD. Satsuma, Alma, Bywater Bakery, Elizabeth’s, and The Country Club are within walking distance. The offering is paired with 3400 Desire St., listed under MLS No. 2488068.
Key Highlights
- Townhouse‑style duplex built in 2020
- 1,882 square feet of property size
- In‑ground pool
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
$23,831
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
3.41%
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%
$476,620
$476.6K
Cap Rate 7%
$340,443
$340.4K
Cap Rate 9%
$264,789
$264.8K
Market Conditions
NOI Build-Up for 1,882 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
$37.3K $19.80/SF
− Vacancy
−$3.2K −$1.71/SF
EGI
$34.0K $18.09/SF
− OpEx
−$10.2K −$5.43/SF
NOI
$23.8K $12.66/SF
Area
New Orleans, LA
Vacancy
8.64%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
30.00%
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%
$476,620
Cap Rate 7%
$340,443
Cap Rate 9%
$264,789
Alternative Uses
Best Use
Multifamily LT 5
$340.4K
$297.9K – $397.2K
NOI $23,831 @ 7.0% cap · market cap 3.41%
Second Best
Apartment 5plus
$312.9K
$273.8K – $365.1K
NOI $21,904 @ 7.0% cap · market cap 3.13%
Theoretical Best
Office A
$478.3K
$418.6K – $558.1K
NOI $33,484 @ 7.0% cap · market cap 4.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
1,274
Businesses Nearby
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?
Duplex - Tenant-occupied duplex in New Orleans’ Bywater neighborhood with HMR-3 zoning.
Where is this duplex located?
The property is located at 725-27 Desire St New Orleans, LA.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Townhouse‑style duplex built in 2020; 1,882 square feet of property size; In‑ground pool
