A lot of thought can go into a successful commercial real estate transaction. In Baton Rouge, 725,000 square feet of retail and office space recently went up for sale. A total of 4,000 employees work for various tenants in the center. Tenants include insurance companies and businesses such as construction companies, mortgage companies, engineering firms, a technology incubator and a communications company that owns its property at the center of the complex and others. The center has maintained 80 percent occupancy for the past 10 years.
A Baton Rouge nonprofit owns the majority of the center, owning a 63 percent stake in the technology center. The center has several other owners as well. The center also houses a large data center which contains two computer data storage centers. The data center space totals 53,000 square feet. A representative for the sellers noted they would like to have the property sold by the end of the year but they acknowledge it is not a traditional office building.
The asking price for the center has not been released. In 2013, a 25 percent stake in the center sold for $5.4 million. A representative for the sellers noted they have higher expectations for the current sale than the 2013 sale. The 2013 seller gained its interest in the property in 2002 and paid $9 million for it in 2003 while it was a tenant in the center. The center was being redeveloped into a mixed use center at the time and was in financial trouble. Commercial real estate transaction have many important parts and it is important for individuals and companies approaching a commercial real estate transaction to be thoroughly familiar with all of them.
Commercial real estate opportunities provide many important growth and expansion moves for individuals and companies alike. Because of their potential complexity, however, it is important that knowledgeable guidance and trained understanding provides guidance throughout the process to help achieve a successful transaction.
Source: The Advocate, "Massive Bon Carre Technology Center in Baton Rouge up for sale; here's what's next," Timothy Boone, Sept. 14, 2016