Understanding and properly navigating the commercial real estate transaction process is important to the success of a business that specializes in commercial real estate.
A private equity real estate company from out of state recently purchased a shopping center in Baton Rouge. The company reported that is paid nearly $21.3 million for the Bluebonnet Parc shopping center in Baton Rouge. According to the company, Bluebonnet Parc has about 15 million visitors annually. It sits on 18 acres near the Mall of Louisiana. It is a 135,367 square-foot property and has eighty-one percent occupancy. The private equity real estate firm’s plan for the property includes leasing the remaining vacant space and developing an additional 15,000 square feet of leasable retail space. The acquisition of Bluebonnet Parc is noted as within the firm’s business strategy.
Commercial real estate transactions can represent growth and progress but can also present many challenges, some anticipated and some unanticipated. Each project will vary based on the strategy and goals of the company, the nature of the transaction and the parties involved. Sometimes the unknowns of a situation can lead to unanticipated conflict or other challenges.
From the initial contract-negotiation phase and drafting a purchase agreement to real estate land use, zoning laws and real estate closings, understanding each aspect of every phase of the process of a commercial real estate transaction can help prevent potential problems and effectively handle problems if any arise. Having the resources to plan ahead of potential problems and effectively manage others that arise, such as commercial real estate litigation, can be important to the success of any commercial real estate project.
Planning ahead using careful knowledge of the complexities of commercial real estate can be invaluable to anyone engaged in commercial real estate. An experienced business and commercial real estate attorney can guide a party in this field through each transaction to a successful conclusion.
Source: Cincinnati.com, “Viking Partners buys La., Tenn. shopping centers,” Mar. 10, 2014