A shopping center in Baton Rouge was recently purchased by two dentists for $3 million. A Baton Rouge realty company made up of two husband-and-wife dentists purchased the shopping center from a New York company. The shipping center encompasses 11.2 acres and has a number of tenants, including grocery, hardware and others. The couple’s realty company notes it maintains a portfolio of greater than 600,000 square feet of office and retail space.
The husband and wife dentists also founded a dental practice and purchased a home last year that local real-estate experts noted was the most paid for a single-family home in Baton Rouge at $6 million. Managing commercial real estate transactions or multiple commercial real estate transactions requires careful knowledge, planning and execution. Commercial real estate transactions may be a way for a business to grow but it is important to understand the legal requirements surrounding a commercial real estate transaction to increase the chances of its success.
There are a number of moving parts involved in a commercial real estate transaction. It is important to be able to identify a real estate opportunity, perform the necessary due diligence and understand how to successfully negotiate an agreement and draft and execute a contract for the purchase and sale of the real estate. Commercial real estate projects may also include additional aspects including construction and hiring a management team, which carry their own legal requirements, concerns and additional contracts to preserve the many relationships involved.
Commercial real estate transactions are exciting growth opportunities, but because many parties and important considerations are involved, it is helpful to have a careful working knowledge of the process. With the right knowledge and guidance, real estate opportunities can be a great benefit to a growing company.
Source: The Advocate, “Shopping center on Sherwood sold for $3 million,” Feb. 23, 2016