Whole Foods Uptown site is on the market
The Whole Foods Market Uptown location at 5600 Magazine St. is up for sale for $36.3 million.
The property is listed by SRSA Commercial Real Estate, Inc. and Faris Lee Investments.
“The owner is the original developer of the property who converted it from a tram barn into the current Whole Foods Market. After getting a long-term commitment from the tenant, he feels ready to turn the property over to someone else, so he can move forward with other investments,” said Chris Robertson, Jr. ., SRSA’s Principal Property Analyst and one of NNN’s commercial property and buy-to-let listing agents. Other listing agents include Steve Reisig and Kirsten Early of SRSA.
A NNN (or triple net) rental agreement on a property is an agreement in which the tenant pays all the expenses of the property, including property taxes, insurance and building maintenance, in addition to the cost of rent and public services.
The property is one of three Whole Foods Market locations in the New Orleans area; there are also stores in Mid-City at 300 N. Broad St. and in Metairie at 3420 Veterans Memorial Blvd.
Rated to yield 3.5% to an investor, the Uptown location is 30,300 square feet on 1.65 acres in a historic urban district business district. There is a low interest assumable loan of 2.92%, according to the listing.
“This location has always proven to be a very important business investment and an integral part of the neighborhood it serves,” Robertson said. “Traffic to this store has been consistently high since opening day and has only continued to perform above expectations.”
As is the case with any owner of a property, the prospective buyer would have the option of continuing the relationship with the existing tenant, or at a future time when the tenant has completed their term of occupancy, the buyer might decide to go a different route, he said.
“The benefits for a future owner of having this property as an investment is that it has a stable long term tenant, in a branded development, located in a booming neighborhood, and would be a wonderful trophy investment for any buyer” , Robertson said.
Robert Hand of Louisiana Commercial Realty said it was the most expensive building for sale in Louisiana.
“If it sells at this price, it will be a tribute to the confidence in the Whole Foods brand and the strength of consumer spending in downtown New Orleans,” Hand said.
CityBusiness staff contributed to this report.