A 4-acre tract of land in Baton Rouge recently sold for $2.3 million. Plans for the property were not immediately disclosed. The land is zoned for office and retail uses. The local construction company that sold the land owns five tracts in the local development of which the one that was sold is one. A representative of the construction company noted that the construction company is pleased with the sale and looking forward to working with future buyers.
The local development also includes residential uses. A subdivision section of the land, which includes 51 homes priced between $240,000 and $250,000, is currently being developed and a representative of the construction company reported that half of the lots have been sold already. Commercial real estate transactions may present a variety of exciting opportunities and some challenges. Being prepared for those potential challenges is likely important to owners, developers and purchasers involved in a commercial real estate transaction.
When entering the real estate market at the sales and purchase point of a transaction, it is important to have knowledge of the different aspects of a commercial real estate transaction. This can help avoid commercial real estate litigation in the future. Likewise, as the project progresses, important considerations may arise related to construction, real estate land use and zoning laws. Both owners, developers and purchasers on a project want to be properly protected from problems that may arise.
The process of a commercial real estate transaction, from contract negotiations and drafting a purchase agreement to real estate closings, can sometimes seem complex but with proper guidance, the process may seem far less so. Proper knowledge of the process can account for a smooth transaction and potentially fewer problems down the road.
Source: The Advocate, “Jamestown land sold for $2.3 million,” Timothy Boone, April 22, 2014