Having a professional on the side of either the seller or purchaser can be an effective tool in negotiations during the commercial real estate sales or purchase process, as well as if the transaction encounters any legal, or other, challenges.
A logging company has plans to open a pine log export facility in west Baton Rouge. The facility will be opened on what used to be a scrap metal yard and will include 12 acres. The logging company paid $1.75 million for the property. A 25,000 square foot warehouse is present on the property. The new location will export 20 to 24 ships with the capacity to hold between 33,000 and 44,000 tons of logs. This is equal to about 1,000 semi-truck loads of pine logs.
The seller’s representative in the commercial real estate transaction noted that the location will stage and fumigate logs for international shipment; the wood must be fumigated to ensure no unwanted pests are transported overseas. The buyer’s representative noted that the logging company attempted to lease space at the local port for the export facility but required more space than the local port can provide, as the staging and loading of logs requires several acres of space.
It is important to keep in mind when contemplating commercial real estate transactions that real estate land use and zoning laws can sometimes greatly impact sales and purchase decisions and location determinations. There are many factors to consider when making a purchase decision and owners may find there are many important considerations during the process. Many disagreements and disputes that occur in commercial real estate can be effectively managed through negotiations.
Because there are many important legal considerations involved in commercial real estate transactions, a trained commercial real estate attorney can be a valuable partner when contemplating sales and purchases of commercial real estate. As an advocate for the client, the attorney can guide contract negotiations to secure the best deal possible for the client.
Source: The Advocate, “WBR land acquired for lumber export facility,” Jan. 3, 2014