2023 Foster Dr Baton Rouge, LA 70807

Property Details for 2023 Foster Dr

Property type

Investment properties

Property subtype

Retail residential properties

APN

248088

APU

248088

Description

This exceptional investment opportunity presents a 4,545-square-foot grocery store located at 2023 North Foster Drive, Baton Rouge, LA 70807. The property is currently under a 15-year absolute triple-net (NNN) lease with IMTAA, a successful grocery store operator, commencing April 19, 2021, and expiring April 18, 2036. With 11.4 years remaining, this lease offers significant long-term stability and minimal landlord responsibilities. The asking price is $2,621,000, representing a price per square foot of $576.68 and an attractive 8.50% cap rate based on a net operating income (NOI) of $222,853. The lease includes annual rent bumps of 2%, providing a strong hedge against inflation. Furthermore, the lease contains four 5-year renewal options, extending the potential investment horizon. The tenant's strong personal guarantee from the CEO adds an extra layer of security. The property benefits from its location in a densely populated residential area of Baton Rouge, a growing market with a large student population due to the presence of Louisiana State University. Nearby national tenants include McDonald's, Advance Auto Parts, Subway, and many others, indicating a strong retail environment. This is a compelling investment opportunity offering a high yield, long-term lease, and minimal management requirements. 100% occupancy ensures immediate cash flow.