When approaching a significant purchase of commercial real estate, it is best to be fully prepared for what may be both an exciting and complex process. A 59-acre piece of land was recently sold for $3 million in Baton Rouge. The land was purchased by a construction company that plans to build an asphalt plant on the property. A business partnership originally had the option to purchase the land for use as part of a natural gas liquefaction and fueling facility but the option to purchase lapsed earlier this year. The construction company that purchased the land specializes in paving, civil construction and industrial construction.
The land that was purchased is next to a 25-acre piece of land that is intended to be used by a natural gas company, however, it is unknown what impact the sale of the 59-acre piece of land to the construction company will have on the use of the neighboring land.
Acquiring commercial real estate can be a big step for any business. There are important concerns to address and consider at every point along the path to a finalized transaction that promises future success for the business. Negotiating the best purchase price and ensuring the land is properly zoned of the intended use, or the buyer knows how to address the situation if it is not, are just a couple of the important considerations that can come up during a significant commercial real estate transaction.
When approaching any significant business transaction or change for a company, it is important not to underestimate how essential it is to have a thorough knowledge of the process at hand. Careful planning and proper execution can benefit any legal transaction and help fulfill the ultimate goal of success for the growing business.
Source: The Advocate, “Construction company buys site for asphalt plant,” Timothy Boone, March 21, 2015