Frenchmen Street Development
For Sale
Contact for pricing
421 Frenchmen St, New Orleans, LA 70116
Prime corner parcel in vibrant entertainment district.
Property Size15,308 SF
Lot Size0.11 Acres
Price / SF$293.96
Days on Market766
Property Features for 421 Frenchmen St
General Information
Standard status
Active
Size
15,308 SF
Class
B
Lot size
0.11 Acres
Property subtype
Retail, Office, Mixed Use
Zoning
HMC-2
Building Details
Buildings
1
Stories
3
Tenancy
Single
Listing Agency:
NAI Rampart
Listed By:
Reed Wiley, CCIM · License #LA BROK.995704349-ASA
(504) 288-4100
Source:
Crexi
Added: Jul 31, 2024
Changed: Aug 27
Last Checked: Sep 1 at 6:58AM
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 NAI Rampart
Investment Insights
Based on property information with market context.
An unparalleled development opportunity is available at the intersection of Frenchmen and Decatur Streets. Located at 421 Frenchmen Street, this property serves as the gateway to the lively Frenchmen Street entertainment district in the Faubourg Marigny, an area known for its vibrant atmosphere. The neighborhood features live music venues, diverse restaurants, bars, coffee shops, and local businesses, including record and book shops. This historic-tax-credit-eligible property offers approximately 15,308 square feet of improvements, supplemented by an elevator shaft, on a corner parcel of approximately 4,876 square feet. The site is zoned HMC-2 (Historic Marigny/Tremé/Bywater Commercial District) with RDO-1, AC-1, RIV overlays, allowing for a multitude of uses. The HMC-2 zoning is intended to permit more intensive commercial uses while protecting the historic character of the Marigny/Tremé/Bywater area. This district includes properties that front on major traffic arteries and can provide access for more intense commercial uses. The zoning also allows higher residential densities when a project provides significant public benefit.
Key Highlights
- Prime location at the intersection of Frenchmen and Decatur Streets, the gateway to the Frenchmen Street entertainment district.
- Substantial ±15,308 SF of improvements on a ±4,876 SF corner parcel.
- Historic‑tax‑credit‑eligible property.
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
$206,658
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
4.59%
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%
$4,133,160
$4.1M
Cap Rate 7%
$2,952,257
$3.0M
Cap Rate 9%
$2,296,200
$2.3M
Market Conditions
NOI Build-Up for 15,308 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
$367.4K $24.00/SF
− Vacancy
−$36.7K −$2.40/SF
EGI
$330.7K $21.60/SF
− OpEx
−$124.0K −$8.10/SF
NOI
$206.7K $13.50/SF
Area
New Orleans, LA
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$4,133,160
Cap Rate 7%
$2,952,257
Cap Rate 9%
$2,296,200
Alternative Uses
Best Use
Mixed Use
$2.95M
$2.58M – $3.44M
NOI $206,658 @ 7.0% cap · market cap 4.59%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.89M
$3.40M – $4.54M
NOI $272,355 @ 7.0% cap · market cap 6.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,452
Businesses Nearby
Explore this area
Business Placement
Demographics for 70116, LA
10,676
Population
9,620
Households
1.1
Avg Household Size
44
Median Age
50%
College-Educated
90%
High-School Grad
1.3 sq mi
ZIP Area
8,212
Density / Sq Mi
$45,580
Median Household Income
$34,849
Median Earnings
$1,190
Median Rent
$385,100
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Prime corner parcel in vibrant entertainment district.
Where is this mixed-use property located?
The property is located at 421 Frenchmen St New Orleans, LA.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Prime location at the intersection of Frenchmen and Decatur Streets, the gateway to the Frenchmen Street entertainment district.; Substantial ±15,308 SF of improvements on a ±4,876 SF corner parcel.; Historic‑tax‑credit‑eligible property.
