Old South B.R. building receives makeover

An automotive shop that was permitted even though it violated the design guidelines of the Old South Baton Rouge overlay district has made changes to comply with the standards. Nick Mattina, who owns the Phil and Nick's Service Center on Nicholson Drive, says he had "no intentions of pulling anything over on anybody" when he applied for a permit to build the shop. The shop was a metal building, but design guidelines call for a stone or masonry-type finish. Mattina says he was "65% to 75%" done on his shop when his permit was pulled, and he spent $12,000 to $13,000 to put a stucco front on the building. He hopes to open the automotive shop in the next few weeks. "I want to make sure that we don't get shut down again," Mattina says. Mattina and Kevin Boyd, executive director of the Old South Baton Rouge Partnership, blame the problem on a miscommunication between the Department of Public Works and the Planning Commission. The DPW didn't receive information from the commission on the overlay district, so none of the red flags came up when Mattina applied for his permit. "Both the planning commission and DPW are well aware of this, and they're quite embarrassed," Boyd says. "There will not be a reoccurrence." —Timothy Boone

Report says B.R. home prices up 3%

Capital Region home prices increased 3% in September, according to the LoanPerformance Home Price Index. The HPI is compiled by First American CoreLogic, from public records sources such as property sales, tax assessments and mortgage filings. While Baton Rouge was seeing an increase in home prices, the index for Louisiana showed a 1.45% drop. Nationwide, home prices fell by 11.2% in September, with California leading the way. Prices in California were down nearly 30% from September 2007. Both the National Association of Realtors and the Greater Baton Rouge Association of Realtors' Multiple Listing Service say Capital Region home prices fell in the third quarter. NAR measures existing single-family home sales, while the GBRAR includes new homes.—Timothy Boone

Former LSU football player buys Willow Grove home

Former LSU running back Jacob Hester, who helped lead the Tigers to the 2007 BCS championship, is sticking around Baton Rouge. Hester and his wife, Katie, closed last week on a 4,000-square-foot home in the Willow Grove TND last week. The couple paid $940,000 for the house on Gardens Drive, which features four bedrooms and four bathrooms. Hester is finishing his first season as a fullback with the NFL's San Diego Chargers.—Timothy Boone

Poll: Half no longer feeling the effects of Gustav

Half of the respondents to a Real Estate Weekly poll say they are no longer feeling the effects of Hurricane Gustav at their home or business. Twenty-seven percent say their homes are still affected by storm damage, 14% say their homes and businesses remain affected and 8% say their businesses are still impacted. Gustav made landfall near Cocodrie in Terrebonne Parish on Sept. 1. Nearly 150 people participated in the poll.

This week's question: How do Baton Rouge home prices currently stand?

Tom Cook: Thunder Racing building sold

The office warehouse on Airline Highway formerly occupied by Thunder Racing has sold. The owner, GAT Enterprises, sold the nearly 64,000-square-foot building to TVB Investments last week for $1.05 million, or about $66.25 per square foot. The new owners plan to lease the property to Adams Collision, a local body shop that will open its second location. The seller's agents were David DiVincenti and Kelly Allen, and the buyer's broker was Trey Williams.

(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)

Brian Andrews: Long term rates unchanged

As the stock market plunges and the nation deals with news of recession, investor flight to quality has the 10-year Treasury index closing at 2.71%, a rate lower than I believe I have seen in more than 25 years in banking and finance.

I would advise my clients to lock in long-term rates if I only had lenders willing to make long term loans.

For those of you considering the purchase or refinance of an apartment project, long-term financing is still available at the same rates we have seen for the past few months. Fannie Mae has apparently determined an interest rate floor below which they will not lend and they have widened spreads every time the Treasury rates have fallen. At present, Fannie Mae rates are still between 6.15% and 6.35%, even with Treasuries dropping so significantly in recent days and weeks, indicating a spread of somewhere around 350 basis points. That's a long way from the 90 basis point spread we saw when the lending market was at its hottest.

It remains to be seen if Fannie Mae will reduce the spreads if and when Treasuries rebound. I would expect Fannie Mae to keep spreads as they are and allow all-in rates to rise when Treasuries start returning to normal.

(Brian Andrews is a certified mortgage banker specializing in the financing of commercial real estate. His business is Andrews Commercial Mortgage and he can be reached at brian.andrews@acmla.com.)

News roundup: McDuff leaving Growth Coalition … LSU receives redevelopment report for Alex Box, Nicholson apartments

Taking a job with State Licensing Board for Contractors: Michael McDuff is leaving his post as head of the Baton Rouge Growth Coalition and taking over as executive director of the State Licensing Board for Contractors. McDuff, who has been the leader of the Growth Coalition for four years, says he'll start with the contractors board on Dec. 15. He plans to help the Growth Coalition through its annual Good Growth Awards banquet on March 5.

Where to grow? A report outlining the redevelopment of a section of Nicholson Drive, including the old Alex Box Stadium, looks at building a mixed-use development with retail, restaurants and LSU student housing. The study, by Economic Research Associates, outlines plans for 12,000 square feet of retail space and 23,000 square feet of restaurant space, which would be a mixture of fast food and a bar/grill, at the current Alex Box site. The 630 apartments would be aimed at graduate and married students, along with faculty. Staci Pepitone, assistant vice chancellor of Finance and Administrative Services, cautioned the report serves only as a guideline, and what eventually happens to the project could be different.