508 Timesaver Ave
Harahan, LA 70123
Fed Govt Industrial Facility in New Orleans · Industrial Property For Sale

The New Orleans Federal Facility is a 47,882 square foot multi-tenant industrial building located in the Elmwood Business Park. The building is 100% leased to three tenants, with approximately 60% of the rental income derived from two new, long-term leases with the United States Federal Government via the General Services Administration (GSA). Both GSA leases are first-generation within this facility, with all new build out and tenant improvements, providing extremely high statistical probability for long-term occupancy beyond the primary lease terms based on average tenancy periods of the GSA. Situated in close proximity to both the New Orleans International Airport and the Port of New Orleans, this facility is utilized for essential functions of the two federal tenant agencies, the Drug Enforcement Administration (DEA) and the Bureau of Safety and Environmental Enforcement (BSEE). This location is one of only three regional offices in the country for BSEE, serving as the regional office for the Gulf of Mexico Outer Continental Shelf Region and Atlantic Activities. The DEA space is used for storage of sensitive materials and items which require high security. The GSA lease for BSEE occupancy is for a 20-year term, while the GSA lease for DEA occupancy is for a 10-year term. The leases are guaranteed by the United States of America, which has a credit rating of Aaa from Moody’s Investors Service. The GSA has a long-standing reputation as a tenant with one of the highest possible renewal probabilities in the commercial real estate industry. Historical data published by the GSA regarding their portfolio of over 8,000 leases nationwide reflects a retention rate which typically exceeds 95%. The third tenant in the facility, Freshy Foods, has also executed a new, long-term lease for a term of 7 years. Freshy Foods is a long term occupant of the building, originally moving into the facility over 10 years ago. Freshy Foods prepares, packages, and distributes fresh food items from this location, include salads and fruits. New Orleans has one of the largest metropolitan statistical areas in the United States, with a 2014 population exceeding 1.251 million, ranking as the 45th largest MSA. The Port of New Orleans is a major economic driver within the market area, and is the 7th largest port in the United States by cargo volume, with over 77 million tons in 2013.