Real estate transactions can present exiting growth opportunities for companies, businesses and investors. A group of Louisiana investors recently purchased an apartment building for nearly $1.8 million. The investors purchased the Baton Rouge apartment complex from an out-of-state company. The apartment complex has 68 units, including one and two-bedroom units. A party involved in the deal noted there is significant redevelopment in the area and other properties may also change hands. The East Baton Rouge Redevelopment Authority is also involved in projects in the area.
The group of investors also owns several other apartment complexes in the Baton Rouge area where the recent complex was purchased. The new owners plan to make exterior renovations and minor interior renovations. According to a party involved in the deal, the rents, which are $560 for a one-bedroom and $675 for a two-bedroom unit, will remain the same. Historically, the apartment building has an approximate occupancy rate of 90 percent and was built in the mid-1970s.
Real estate opportunities are important for many companies and businesses. As a result, it is essential for businesses to have the best approach to negotiating a real estate deal, drafting a purchase or sale agreement and to be aware of important concerns such as due diligence requirements and relevant zoning laws and the impact they can have on their transaction. Knowing how to properly approach a commercial real estate transaction can be vital to its success.
Real estate transactions can be complex but extremely beneficial for an expanding company or businesses in different situations. Informed guidance throughout the process can be invaluable in any number of commercial real estate situations.
Source: The Advocate, “Melrose East apartment complex sold for $1.8 million,” Timothy Boone, June 22, 2016