Understanding the commercial real estate process can be a valuable tool for the development and growth of a business. A nearly one-acre sized piece of property was recently sold in Baton Rouge for $349,308. A brewing company sold the property to an arm of the Baton Rouge Area Foundation. The entity that bought the property was acting on behalf of Community Foundation Realty. The Baton Rouge Area Foundation is part of developing a 33-acre site between the downtown area and LSU. The site will potentially be a center for public and private research.
The company that sold the property bought it a year ago, prior to the announcement of the public and private research center, for one-third the recent selling price. At the time, it was expected to possibly serve as a location for the brewery company. The brewing company has been expanding where it currently resides. Commercial real estate can be a valuable business opportunity. It can also be complex with many important considerations. Among other considerations, real estate transactions can involve contract negotiation, drafting a purchase agreement, real estate closings and an understanding of the real estate market.
Many parties may also be involved in the sales and purchase process, including owners, purchasers, regulators and a variety of other parties. It can be important to successful real estate transactions to understand all the many working parts of a real estate transaction beforehand. This may help prevent problems down the road. Additionally, if real estate litigation must inevitably be faced, proper planning may help the process run smoother.
Before making a commercial real estate sale or purchase, as part of a business strategy, it can be helpful to have thorough insight concerning the different steps and phases in the process. This will better prepare the commercial endeavor for success or resolution of any potential problems that may arise.
Source: The Advocate, “Tin Roof sells property to Baton Rouge Area Foundation,” Timothy Boone, Sept. 19, 2014