Help analyze this property

[Nathaniel D]

Hi,

I am new to this forum but have been educating myself by reading over years and on BP regularly for over a year. I started investing as a buy and hold investor 3 years ago, and to date, I have acquire 3 duplexes. I had recently come across and commercial property that I really like because of the location, but analyzing these types of investment is currently above my level of expertise. Can anyone help let me know if it's worth pursuing or not?

The location:
Right outside the gate of LSU, in a high traffic area during the school year.
Asking price: $2 Mil
Current rent: 13000 per mo
LEase type: 2 of the 3 lease are NNN. The 3rd is single N lease with owner paying for insurance and exterior maintenance.
Acutal NOI: about 150k but after inspecting the lease, there's a 6% fee due to the leasing broker every year, including any renewal so NOI is more like 140k per year.

The tenants seems to be doing pretty well, but they are not credit tenants. From the look of this deal, it seems overpriced, but as mentioned, this is in a prime location in my opinion.