Office development for sale on Sherwood Commons

A nearly 48,000-square-foot office/retail/warehouse development is under construction on Sherwood Commons Boulevard between Airline Highway and Coursey Boulevard. About half of the Buckhead Business Center is expected to open by the end of the year, says Grey Hammett, who is developing the project with Philip Haddad. Hammett and Haddad closed on the property last week, paying $988,860 for lots next to the Red Cross office currently under construction. Space in Buckhead is selling for between $106 and $133 per square foot. Construction could start on the remaining half of the development by the end of the year, Hammett says.—Timothy Boone

Clegg's Nursery owners complete land buys

The owners of Clegg's Nursery has purchased their buildings on Siegen Lane and North Donmoor Drive for $1.4 million in a deal that closed last week. Plantco Acquisitions, made up of longtime Clegg's employees Thomas Fennell and Scott Ricca, purchased the nursery business in 1999 but continued to lease the properties. Plantco bought land for a Denham Springs location in 2000, then purchased the Greenwell Springs Road store outright last year. Ricca says by buying the Greenwell Springs location, Clegg's was able to upgrade the store. "That's something that's certainly on the table for these other two locations," he says. "We've got to figure out what needs to be done." Clegg's has 3.5 acres on Siegen Lane and .75 acres on North Donmoor.—Timothy Boone

Derbes named to appraiser board

Dan Derbes, a veteran appraiser and former president of the Greater Baton Rouge Association of Realtors, has been appointed to the Louisiana Real Estate Appraisers Board. Gov. Bobby Jindal on Friday appointed Derbes to fill the 6th Congressional District seat on the board. Derbes has been a licensed appraiser and real estate broker for more than 40 years. He replaces Dale Plauche of St. Francisville as the 6th District representative.

Poll: Most think EBR strongest residential market

A majority of Real Estate Weekly readers believe East Baton Rouge Parish is the strongest residential housing market. Fifty-two percent say East Baton Rouge Parish is the best spot for residential real estate; 27% believe Ascension Parish is the best and 21% say Livingston Parish. More than 200 people participated in the survey.

This week's question: Will the housing bailout plan approved by Congress last week help the local real estate market?

Brian Andrews: Financial assistance for first-time homebuyers

The federal government is pushing H.R. 3221, the Housing Assistance Tax Act of 2008, in an effort to stabilize the national housing market. Sandy Dunn, president of the National Association of Home Builders, says the bill "contains several provisions to help homebuyers, stop the slide in home prices, provide a lifeline to borrowers facing foreclosure, improve mortgage liquidity and bolster confidence in Fannie Mae and Freddie Mac."

One of the primary benefits of the legislation is a refundable first-time homebuyer credit. According to the House Committee on Ways and Means Web site, the bill "provides a refundable tax credit that is equivalent to an interest-free loan equal to 10% of the purchase of a home (up to $7,500) by first-time homebuyers." Key elements include:

-- The provision applies to primary residences (single-family, townhomes or condominiums) purchased on or after April 9, 2008 and before July 1, 2009.

-- The credit is available for first-time homebuyers only (defined as a buyer who has not owned a home during the past three years).

-- Taxpayers receiving this tax credit would be required to repay any amount received under this provision back to the government over 15 years in equal installments. If the home is sold, the remaining credit would be due from the profit of the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

-- The credit begins to phase out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return).

Lynda Evans, executive vice president of the Capital Region Builders Association, says the housing credit is "great news for our industry." Others in the local market feel that the incentives will jumpstart sales and help reduce the excess inventory of houses on the market.

Details of the legislation will be forthcoming and, as with any tax benefit, purchasers should consult qualified tax specialists before making any decisions.

(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.)

Real estate recap: Chase building gets new owner; B.R. still ranks

Bank branch switches hands: The empty Chase Bank building on Jefferson Highway south of Corporate Boulevard has been sold for $1.075 million. Jim Tanner, who bought the building in September, sold it to Sidney Coxe Jr. Coxe bought the property for a long-term hold, says Grey Mullins of Beau Box Commercial Real Estate, who represented both the buyer and the seller. The 2,500-square-foot building has been empty for a year, since Chase opened up its Towne Center branch. Number of houses being seized shoots up: Baton Rouge ranks 96th on a list of foreclosure rates in the 100 largest U.S. cities. According to RealtyTrac, one out of every 780 Capital Region households faced foreclosure during the second quarter. The national average was one foreclosure for every 171 U.S. households, a 121% increase over the second quarter of 2007. The foreclosure rate in Baton Rouge increased more than the national average over the past year, going up 133%.