Two-Story Restaurant with Commercial
For Sale
$1,340,000
8227 Oak St, New Orleans, LA 70118
Elevator-served building includes dining, bar, event, prep, storage, and cold-storage areas.
Property Size4,587 SF
Price / SF$292.13
Days on Market22
Property Features for 8227 Oak St
General Information
Standard status
Active
Size
4,587 SF
Additional Details
Floor
Ground + 2
Commercial Hood
Yes
Building Details
Year Built
1940
Listing Agency:
Ben & Burka
(504) 301-1002
Listed By:
Aaron Kazanoff · License #0995700882
Source:
Fiorellaavenue
Added: Aug 7
Changed: Aug 28
Last Checked: Aug 28 at 1:10PM
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 Ben & Burka
Investment Insights
Based on property information with market context.
This 4,587-square-foot restaurant property occupies two levels and is configured for full-service hospitality use. The ground floor includes an open dining room with high ceilings, a full bar, and a commercial kitchen with multiple hood systems, prep and storage areas, a dish pit, and a walk-in cooler and freezer. The upper level adds dining and event space, an open seating area, a second full bar, and a dedicated walk-in cooler connected to the tap-line and keg system. An elevator serves the building.
Built in 1940, the property is positioned on Oak Street in Uptown New Orleans. The surrounding corridor includes restaurants, bars, and neighborhood destinations, providing an established hospitality setting for an operator seeking a restaurant-focused commercial property.
Built in 1940, the property is positioned on Oak Street in Uptown New Orleans. The surrounding corridor includes restaurants, bars, and neighborhood destinations, providing an established hospitality setting for an operator seeking a restaurant-focused commercial property.
Key Highlights
- 4,587‑square‑foot restaurant property with two levels
- Ground‑floor commercial kitchen with multiple hood systems, prep and storage areas, dish pit, walk‑in cooler, and freezer
- Second‑floor dining and event area with full bar and dedicated walk‑in cooler
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
$64,732
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
4.83%
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%
$1,294,640
$1.3M
Cap Rate 7%
$924,743
$924.7K
Cap Rate 9%
$719,244
$719.2K
Market Conditions
NOI Build-Up for 4,587 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
$88.1K $19.20/SF
− Vacancy
−$1.8K −$0.38/SF
EGI
$86.3K $18.82/SF
− OpEx
−$21.6K −$4.70/SF
NOI
$64.7K $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%
$1,294,640
Cap Rate 7%
$924,743
Cap Rate 9%
$719,244
Alternative Uses
Best Use
Specialty Retail
$924.7K
$809.2K – $1.08M
NOI $64,732 @ 7.0% cap · market cap 4.83%
Second Best
Industrial
$418.3K
$366.0K – $488.1K
NOI $29,283 @ 7.0% cap · market cap 2.19%
Theoretical Best
Office A
$1.17M
$1.02M – $1.36M
NOI $81,610 @ 7.0% cap · market cap 6.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
1,294
Businesses Nearby
37k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 57%
Dining 37%
Home Improvements & Furnishings 3%
Beauty & Spa 3%
Shell
Shops & Services
9,171 visits/mo
0.4 miles
Chevron
Shops & Services
5,992 visits/mo
0.3 miles
la Madeleine Country French Cafe
Dining
5,803 visits/mo
0.4 miles
Whitney Bank
Shops & Services
4,842 visits/mo
0.2 miles
Taco Loco
Dining
3,633 visits/mo
0.4 miles
Demographics for 70118, LA
35,635
Population
15,464
Households
2.3
Avg Household Size
31
Median Age
54%
College-Educated
92%
High-School Grad
4.6 sq mi
ZIP Area
7,747
Density / Sq Mi
$62,665
Median Household Income
$28,199
Median Earnings
$1,257
Median Rent
$451,600
Median Home Value
Market
Vacancy Rate% for Retail in New Orleans, LA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Elevator-served building includes dining, bar, event, prep, storage, and cold-storage areas.
Where is this conventional restaurant located?
The property is located at 8227 Oak St New Orleans, LA.
What is the asking price?
The asking price for this property is $1,340,000.
What are key features of this property?
This property features: 4,587‑square‑foot restaurant property with two levels; Ground‑floor commercial kitchen with multiple hood systems, prep and storage areas, dish pit, walk‑in cooler, and freezer; Second‑floor dining and event area with full bar and dedicated walk‑in cooler
