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: 5/16/2019

Overview / Comments

Updated as of May 3, 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, both 5 year leases

Actual Net Leases on 3,815 sf. total

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-Leases approx. 1,419 square feet.
at an average Base Rent of: $10 psf. + $4.00 psf. , 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.

at $10 base plus on medical lease a $4 psf cam for initial 5 years, then a true actual triple net lease
On the CPA, whatever the net charges are triple net, plus a $11 base rent

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: $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.


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 6/0030
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)
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
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


Photograph of Listing Agent

Bryan D Pigeon

GARDNER REALTORS Mandeville Mandeville, LA 70448
LACDB Member
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