NOI: 8.5% at Asking Price

Office for Sale
Catylist Listing ID: 30353852
Property Subtypes: Business Park, Executive Suites, Governmental, High-Tech, Institutional, Medical, Mixed Use, Flex Space, Net Leased, Office Building, Other
Building Size (RSF): 3,815 SF
Gross Building Area: See Agent
Sale Price: $670,000
Unit Price: $175.62 PSF
Property Use Type: Net Leased Investment (NNN), Investment, Vacant/Owner-User, Business
Class of Space: Class A
Sale Terms: Cash to Seller, Owner Financing
Cap Rate: 8.5%
Last Updated: 6/18/2019

Overview / Comments

Updated as of June 17, 2019
(View within the Rent Roll/Income, and Operating Expenses, offering a 8.5% Cap Rate at asking price).

100% leased, with a Medical tenant and a CPA tenant, and both are 5 year leases, plus options.
Building like new, view pictures within. No defered maintenance, well maintained.

Actual Net Leases on entire building which consist of approx. 3,815 sf.

Unit A: CPA- Leases approx. 2,396 square feet
at Base Rent of: $11.00 psf.+ $5.41 psf. Cam, (Actual operating expenses/A Net Commercial Lease), paying annually a total of $39,318.36 annually for X Five (5) Years from the Act of Sale date.

Unit B: Medical-Lease on balance of building approx. 1,419 square feet.
at an Average Base Rent of: $10 psf. + $4.00 psf. cam, paying annually a total of $19,866 annually for x Five (5) Years from July 1, 2019-June 31, 2024,

Total Gross "Actual" rents of: $59,184.36 each year x Five (5) years, or $295,921.80 dollars of actual gross income over the term of both tenants, plus each has 1 5 year option, with increases of 3% each year thereafter.

Annual Operating Expenses:
Taxes: $9,903.00
Insurance: $4,244.00
Dues: $4,387.00 (Takes care of capital expenses to building and the entire site/ownership dues. (Request list of itemized cost that are covered).
Water: $1,830.00
Termite fee: $300.00
Total Annual Operating Expenses: $20,664.00 Annually

Unit A: CPA pays $12,962.36 each year.
Unit B: Medical pays $5,676.00 each year.
Totalling All Operating Expenses paid for by Unit A and Unit B tenants in an amount of: $18,638.36
Therefore Ownership pays only $2,025.64 per year in Operating Expenses.

Gross Rents: $59,184.36
Minus (-) Operating Expenses: $2,025.64
Net Operating Income: $57,158.72
Cap Rate: 8.5% Internal Rate of Return

This Office Park Professional building is a brick structure exterior, and interior is Class A office space, high end build out, very, very well-maintained. The location is ideal to serve the Mandeville, Covington, and Interstate 12 markets.

Ownership may finance for the right credit worthy buyer, and under terms that are better than conventional lenders are offering. Make offer with terms and conditions that are acceptable to buyer, for seller to review.

Financials

Finance Data Year 2019
Real Estate Taxes - Annual($) $9,903 (Annual)
Gross Operating Income $14 (Annual)
Actual or Proforma Year Actual
Lender Name Seller may consider Financing
Amortization Period 20-25

Current Tenants

Tenant Business Name Medical Doctor
Is Renting? Yes
Annual Revenue $14 (Annual)
SF of Space Occupied 1,419 SF
Current Rent $1,655 PSF (Annual)
Lease Expiration 6/0024
Escalations In option a 3% each year increase
Options One (5) Year option
Tenant Notes Initial Lease term: A 5 year commencing June 1, 2019 with 1 5 yr option with 3% increases each year
Tenant Business Name Certified Public Accountant
Is Renting? Yes
Annual Revenue $39,318 (Annual)
Suite Number A
SF of Space Occupied 2,396 SF
Current Rent $3,277 PSF (Annual)
Lease Expiration 6/0024
Options 1 (5) year option to renew with 3% per year increase.
Tenant Notes Initial Lease term: 5 year lease commencing from the act of sale date, Paying Base Rent of: $11 psf. plus actual net charges of $5.41 psf. One (5) year options having a 3% increase in rent each year commencing in year 6

Additional Details

Nearest MSA: New Orleans-Metairie
County: Saint Tammany
Tax ID/APN: 80533
Zoning: COMMERCIAL
Property Located Between: Highway 190 at River Highlands
Property Visibility: Excellent
Highway Access: Hwy. 190 and Interstate 12
Total Number of Buildings: 1
Number of Stories: 1
Roof Type: Arched
Parking Type: Surface
Heat Type: Electricity
Heat Source: Central
Air Conditioning: Package Unit
Interior Description: High End Class A build out, very professional
Water Service: Municipal
Sewer Type: Municipal

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 3,757 30,479 63,933
Median Age: 41.77 39.34 40.35
Households: 1,392 11,868 24,471

Contact

Photograph of Listing Agent

Bryan D Pigeon

GARDNER REALTORS Mandeville Mandeville, LA 70448
LACDB Member
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