Downman Road Commercial
For Sale
Contact for pricing
7100 Downman Rd, New Orleans, LA 70126
Former Papa John's restaurant with retail or restaurant potential.
Property Size1,320 SF
Price / SF$181.82
Days on Market1217
Property Features for 7100 Downman Rd
General Information
Standard status
Active
Size
1,320 SF
Property subtype
Retail
Zoning
C-1
Building Details
Year Built
1970
Buildings
1
Stories
1
Listing Agency:
Paul Gilmore & Associates
Listed By:
Kathy Tolliver · License #05755
(504) 481-9595
Source:
Crexi
Added: May 5, 2023
Changed: Aug 31
Last Checked: Aug 31 at 12:52PM
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 Paul Gilmore & Associates
Investment Insights
Based on property information with market context.
This commercial property is located on Downman Road. The one-story building, formerly a Papa John's Pizza restaurant, offers possibilities for retail or restaurant use. It is zoned C-1. The location benefits from a traffic count of approximately 17,000 cars per day. The property has a size of 1,320 square feet.
Key Highlights
- High traffic count (approx. 17,000 cars per day)
- C‑1 zoning (suitable for retail or restaurant)
- Former Papa John's Pizza restaurant with existing restaurant infrastructure
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
$20,863
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
8.69%
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%
$417,260
$417.3K
Cap Rate 7%
$298,043
$298.0K
Cap Rate 9%
$231,811
$231.8K
Market Conditions
NOI Build-Up for 1,320 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
$30.4K $23.04/SF
− Vacancy
−$608 −$0.46/SF
EGI
$29.8K $22.58/SF
− OpEx
−$8.9K −$6.77/SF
NOI
$20.9K $15.81/SF
Area
ZIP 70126
Vacancy
2.00%
Lease Rate
$23.04 /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%
$417,260
Cap Rate 7%
$298,043
Cap Rate 9%
$231,811
Alternative Uses
Best Use
Specialty Retail
$322.7K
$282.3K – $376.5K
NOI $22,587 @ 7.0% cap · market cap 9.41%
Second Best
Retail
$298.0K
$260.8K – $347.7K
NOI $20,863 @ 7.0% cap · market cap 8.69%
Theoretical Best
Office A
$346.2K
$302.9K – $403.9K
NOI $24,235 @ 7.0% cap · market cap 10.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
385
Businesses Nearby
2k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
U-Haul Neighborhood Dealer
Shops & Services
1,127 visits/mo
0.1 miles
The UPS Store
Shops & Services
1,116 visits/mo
0.1 miles
Demographics for 70126, LA
30,397
Population
12,686
Households
2.4
Avg Household Size
33
Median Age
24%
College-Educated
87%
High-School Grad
12.1 sq mi
ZIP Area
2,512
Density / Sq Mi
$38,229
Median Household Income
$29,510
Median Earnings
$1,118
Median Rent
$187,300
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?
Restaurant - Former Papa John's restaurant with retail or restaurant potential.
Where is this restaurant located?
The property is located at 7100 Downman Rd New Orleans, LA.
What is the asking price?
The asking price for this property is $240,000.
What are key features of this property?
This property features: High traffic count (approx. 17,000 cars per day); C‑1 zoning (suitable for retail or restaurant); Former Papa John's Pizza restaurant with existing restaurant infrastructure
