When it comes to real estate, the key is to success is purchasing at a lower valuation than it is worth or than it can be developed to be. Usually some elbow grease and investment is needed in order to develop commercial real estate to its full potential. By full potential, we mean its full valuation. In a large purchase by a local Baton Rouge company, nearly five acres of commercial real estate was purchased for nearly $1 million.
The money was well-spent as there is an abundance of office space available for lease as well as a ton of developable real estate near the Mississippi River. Some of the buildings are older, built around 1940, and had originally been used for industrial purposes. With zoning permits allowing for a blend of commercial real estate and industrial purposes on the property, the business mentioned that the location would be ideal for a corporate headquarters or similar business or government agency.
With the deal coming to a close with a $960,000 offer on behalf of the Baton Rouge-based cousins, there were likely several provisions written into such a large deal. Likely, both buyer and seller deliberated and had much discussion both publicly and privately before making the deal. The seller was Louisiana Casino Cruises who own nearby Hollywood Casino. It sounds as if the buyer has ambitious goals for their newly acquired property but nothing has been set in stone yet.
These deals may be once in a lifetime for a business owner, or they could be routine. Either way, one must look out for their best interests of themselves and of their company in order to get the best deal. Beyond deals, there are other provisions one should consider when making such a large business deal. This goes for anyone in the commercial real estate market, whether buying or selling.
Source: businessreport.com, “Downtown Baton Rouge Industrial Site Sells for $960k,” Stephanie Riegel, July 31, 2017