Business Center with Development
For Sale
Contact for pricing
2399 Ferrand St, Monroe, LA 71201
8-suite business center with 1.65 AC development land.
Property Size8,000 SF
Lot Size1.65 Acres
Price / SF$172.34
Days on Market863
Property Features for 2399 Ferrand St
General Information
Standard status
Active
Size
8,000 SF
Class
A
Lot size
1.65 Acres
Property subtype
Mixed Use, Office, Retail
Zoning
B-2
Building Details
Year Built
2016
Listing Agency:
John Rea Realty
(318) 261-0892
Listed By:
Jennifer Causey · License #LA995693195
Source:
Crexi
Added: Apr 2, 2024
Changed: Aug 11
Last Checked: Aug 11 at 9:56AM
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 John Rea Realty
Investment Insights
Based on property information with market context.
This property presents an investor opportunity featuring an 8-suite business center along with 1.65 acres of development land. The business center comprises eight suites, each offering a mix of warehouse and office space suitable for small businesses, trades, or service providers. Each suite provides approximately 1,000 square feet, including approximately 800 square feet of warehouse space and approximately 200 square feet of office space. The warehouse areas feature 14-foot ceilings and 12-foot roll-up doors. The office areas include a private entrance, climate control, and an ADA-compliant restroom. The adjacent development land consists of two lots: Lot 1, which is 0.73 acres and fronts Armand Connector, and Lot 2, which is 0.92 acres and fronts Ferrand Street. The zoning is B-2 Neighborhood Business District, and all utilities are available at the site. The property is not in a flood zone. The location provides visibility and access to Tower Drive, Ferrand Street, Highway 165/Sterlington Road, and I-20. It is centrally located near Monroe’s medical, business, university, and financial districts. The location is suitable for professional office, medical, retail, or restaurant use. Blueprints for future expansion are included with purchase.
Key Highlights
- High‑yield investment opportunity with an impressive 9.82% CAP rate at full occupancy.
- Includes an 8‑suite business center with turnkey warehouse and office spaces.
- Additional 1.65 AC of development land with B‑2 zoning suitable for various commercial uses.
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
$47,152
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
3.42%
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%
$943,040
$943.0K
Cap Rate 7%
$673,600
$673.6K
Cap Rate 9%
$523,911
$523.9K
Market Conditions
NOI Build-Up for 8,000 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
$59.5K $7.44/SF
− Vacancy
−$4.0K −$0.51/SF
EGI
$55.5K $6.93/SF
− OpEx
−$8.3K −$1.04/SF
NOI
$47.2K $5.89/SF
Area
Ouachita County, LA
Vacancy
6.80%
Lease Rate
$7.44 /SF/Yr
Expense Ratio
15.00%
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%
$943,040
Cap Rate 7%
$673,600
Cap Rate 9%
$523,911
Alternative Uses
Best Use
Office B
$3.44M
$3.01M – $4.02M
NOI $240,926 @ 7.0% cap · market cap 17.47%
Second Best
Warehouse
$673.6K
$589.4K – $785.9K
NOI $47,152 @ 7.0% cap · market cap 3.42%
Theoretical Best
Multifamily LT 5
$86.17M
$75.40M – $100.53M
NOI $6,031,953 @ 7.0% cap · market cap 437.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
708
Businesses Nearby
Explore this area
Business Placement
Demographics for 71201, LA
21,565
Population
10,352
Households
2.1
Avg Household Size
39
Median Age
43%
College-Educated
92%
High-School Grad
14.9 sq mi
ZIP Area
1,447
Density / Sq Mi
$53,538
Median Household Income
$44,262
Median Earnings
$882
Median Rent
$247,100
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 8-suite business center with 1.65 AC development land.
Where is this mixed-use property located?
The property is located at 2399 Ferrand St Monroe, LA.
What is the asking price?
The asking price for this property is $1,378,697.
What are key features of this property?
This property features: High‑yield investment opportunity with an impressive 9.82% CAP rate at full occupancy.; Includes an 8‑suite business center with turnkey warehouse and office spaces.; Additional 1.65 AC of development land with B‑2 zoning suitable for various commercial uses.
