The commercial condo that will house the new Dave & Busters at the top of new 1200 Poydras Street parking garage has hit the market with a $13,900,00 price tag. The project has barely broken ground, with the site being cleared by bull dozers as we speak.
According to the property listing, the 40,900 square foot commercial condo unit that houses the Dave & Busters is for sale. The condo will bring in an annual rent of $1,220,900 ($771,000 Base Rent/ $449,900 T.I. Rent) on a NNN lease with an initial term of 15 years, with 3, 5 year options. The lease features 10% bumps every renewal.
The proposed sale price represents a cap rate of 5.5%, pretty damn low for New Orleans! Rent comes out to roughly $19/SF, not including the tenant improvement allowance payments (total rent/SF is roughly $29 with TI payments).
In addition to the Dave & Busters, the development also includes 18,000 square feet of retail and a 400-space parking garage, for a total of 264,000 square feet. 200 garage spaces are reserved parking for Dave & Busters, 31 for the ground floor retail and 162 spots for sale. The development was green-lighted in January and broke ground this summer.
Dave & Busters, Inc. currently operates 73 locations in North America with roughly $745 million in annual revenue.
Check out the flyer below. SRSA Real Estate is marketing the condo.
[Update 10/13/15 at 2:45pm CDT: The marketing flyer originally posted below has been removed since it was an old flyer from months ago and, according to SRSA Real Estate, had been inadvertently uploaded to Lacdb.com]