Crowder Center

Marcus & Millichap is pleased to exclusively list Crowder Center, a 31,552-square-foot shopping center located at 5790 Crowder Boulevard in New Orleans, Louisiana. The property is situated on the corner of Interstate 10 (113,600 vehicles per day) and Crowder Boulevard (16,400 vehicles per day) in East New Orleans.

Producing a day one CAP rate of 10.07 percent, Crowder Center presents an investor with a rare opportunity to acquire a stabilized asset well above the current national average CAP rate of 6.71 percent for retail properties (according to data provided by CoStar). Crowder Center is 93.64 percent occupied, and 86.66 percent of the tenants have occupied the center with ongoing tenure of 8 years or more.

An investor can increase the Year-1 CAP rate of 10.07 percent to achieve a 11.20 percent CAP rate in Year-3 by maintaining occupancy, renewing leases at the scheduled renewal option rates, and leasing the 2,007-square-feet of vacancy at $13.00/square foot plus triple-net reimbursements. (The average market rent per square foot in the New Orleans East submarket is $13.74 according to data provided by CoStar).

Another opportunity to increase returns with this property would be through refinancing once interest rates reduce to a range of 7 percent or below.