At 1,913, the number of building permits issued in East Baton Rouge Parish in April was up 13% over the 1,686 issued during the same month last year, according to a new report from the city-parish Department of Public Works. Perhaps even more important, the valuation of projects permitted was up 65% on the month—approximately $69.9 million, up from $42.4 million. A total of 65 permits for commercial projects, including five stores and six apartment projects, were issued during April. That's up from 46 commercial permits in April last year. Residential permitting, however, was down slightly in April. Of the 137 permits issued, 60 were for single-family residences and 77 were for additions. There were 142 residential permits issued last April. Four months into 2013, total permitting is down from last year, as is the valuation of projects permitted. The 7,083 permits issued this year are 2% fewer than the 7,227 issued through April last year. Valuation is off 5.6%: $199.7 million...
A $700,000 gap loan for Danny McGlynn to renovate the Darensbourg building on Government Street, as well as upgrade several neighboring buildings on the 2900 block of the Mid City street, will be taken up by the East Baton Rouge Redevelopment Authority board on June 11. An RDA loan review committee today gave McGlynn's plans a favorable review and is recommending the RDA give final approval to the low-interest loan for the project. "It's a loan that will make the project work, and now we just need the full board approval and we're off to the races," says McGlynn, who is calling the project a "model block" project for future Government Street redevelopment. The plan, as Daily Reportfirst reported in September, calls for Ritter Maher to move its headquarters from Bluebonnet Boulevard to the currently dilapidated and vacant Darensbourg building. It also calls for a face-lift...
Those behind a years-long effort to bring the Lincoln Theater in Old South Baton Rouge back to its former glory are gearing up for a new run at raising enough private funds to finally restore the historic theater—with a long-term goal of expanding the property to make room for the Louisiana Black History Hall of Fame Museum. A "Restore the Lincoln" fundraising campaign kickoff reception is being held Friday by the black history hall of fame and Foundation for Historical Louisiana. Attendees of the event will be shown plans for the first two phases of the restoration and asked to lend their support—and more important, their money. The first phase includes readying the property for a full renovation and making it environmentally safe, which means removing lead piping and paint, asbestos and mold. The second phase would restore the theater, which was built in 1950 and served as the premiere entertainment venue in Old South Baton Rouge. "This would bring the Lincoln Theater...
With 10,200 more people working in the construction industry in April than were during April 2012—an increase of 8.1%—Louisiana's sector job growth was the third-best in the nation, according to the latest monthly jobs report from the Associated General Contractors of America. Alaska was No. 2 for job growth by percentage on the year, at 9.1%, while Hawaii led the nation with 11.5% year-over-year growth. The 135,600 construction workers in Louisiana in April represented a 0.4% increase, or 600 more jobs, from the month previous. Construction sector employment has now grown in Louisiana every month so far this year. It is one of just 29 states in the country that saw year-over-year growth in April, while 32 states and the District of Columbia posted job losses. Louisiana is also among just 17 states that had construction job growth between March and April. You can find the complete April jobs report from AGCA
Builders received permits Monday from the city-parish to begin construction on homes in The Preserve at Harveston—the 95-acre, first phase of Mike Wampold and John Fetzer's planned 1,200-acre mixed-use development straddling the Bluebonnet Extension. Construction on the homes, which will be priced in the low-to-mid $300,000 range for smaller homes and close to $400,000 for larger properties, is scheduled to begin in the next two weeks. Five local builders have been selected for the project: Colby Constructors, Distinctive Homes by Watson, Dupree Construction, Fetzer Properties of Louisiana, and Unified Construction Group. Each builder will begin with three model homes, and will be required to follow strict design guidelines that detail the coastal/Creole/West Indies-architectural style that will characterize the development. Some 350 homes are planned for The Preserve, 93 of which will be constructed on a 33-acre tract that will be the first part of the first phase. Permits...
HUD offices across the nation will be closed Friday as part of a program to reduce costs through unpaid furloughs. The closure means the offices will be shuttered for four days through the Memorial Day weekend, so anyone with time critical issues should plan accordingly. But the biggest news from HUD on cost savings is the consolidation of several offices into regional hubs, and Louisiana is significantly impacted by these plans. First, the multifamily production activities currently being performed from the New Orleans field office will be consolidated into the existing Fort Worth hub in Texas, representing one of five regions being established in this new plan. According to statements on HUD's website, "this simplified structure will increase national consistency across Multifamily." In addition, they also expect "that the more streamlined field management structure will streamline decision-making and enhance accountability." HUD addresses potential fears that a Fort Worth office...
Bolstered by a strong April, in which home sales in the eight-parish Capital Region were up 28%, 2013 sales are now 16% higher than they were through April a year ago. That's according to the latest monthly sales report from the Greater Baton Rouge Association of Realtors. A total of 2,545 sales have closed through April this year, compared to 2,193 in the first four months of last year. In addition, the region's average sales price in April, at $208,153, was also 12% higher than the $186,352 average price recorded in April 2012. The number of homes on the market during April, 3,938, was down 14% compared to last April, when 4,592 homes were for sale in the region. "The prickliest thorns in our collective side are still lack of inventory and subdued listing activity," reads the GBRAR April report. "In some neighborhoods, consumers have 50 or 60 percent fewer options from which to choose than they did a few years ago. That's causing bidding wars in popular areas." In East Baton Rouge...
In or out: If the East Baton Rouge Library Board of Control does, in fact, decide to pull the plug on the long-planned Rouzan library and relocate the branch elsewhere—as board members indicated last week that they may well do—the traditional neighborhood development is still viable. So says the lender on the project, businessman John Engquist, who acquired the mortgage on Rouzan from BancorpSouth last year. "That is a very viable, vibrant development with or without a library," says Engquist. "Would I rather have the library? Absolutely. But I would not say 'oh, no!' if it fell apart." Daily Report has the full story here.
Hercules Trucking, doing business as Hercules Tec, has purchased a 43.9-acre tract on River Road, just downriver from Bear Industries in Iberville Parish. The sale closed on May 13 for $824,500, or about $18,780 per acre. The property, which includes 4.2 acres of batture with 308 feet of frontage on the Mississippi River, is an assemblage of two tracts. Trey Williams with NAI/Latter & Blum Realtors represented the purchaser in the transaction. The sellers, James Ralph Babin, Jerline Babin Hebert, Rita Delores Babin LeBlanc and Carol Ann Babin Landaiche, were not represented with an agent. Hercules' primary business is transporting propane and natural gas. The property will be used to develop a new facility, which will become the company's main office in the Baton Rouge metro area. (Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
Those behind a years-long effort to bring the Lincoln Theater in Old South Baton Rouge back to its former glory are gearing up for a new run at raising enough private funds to finally restore the historic theater—with a long-term goal of expanding the property to make room for the Louisiana Black History Hall of Fame Museum.
Those behind a years-long effort to bring the Lincoln Theater in Old South Baton Rouge back to its former glory are gearing up for a new run at raising enough private funds to finally restore the historic theater—with a long-term goal of expanding the property to make room for the Louisiana Black History Hall of Fame Museum. A "Restore the Lincoln" fundraising campaign kickoff reception is being held Friday by the black history hall of fame and Foundation for Historical Louisiana. Attendees of the event will be shown plans for the first two phases of the restoration and asked to lend their support—and more important, their money. The first phase includes readying the property for a full renovation and making it environmentally safe, which means removing lead piping and paint, asbestos and mold. The second phase would restore the theater, which was built in 1950 and served as the premiere entertainment venue in Old South Baton Rouge. "This would bring the Lincoln Theater...
Completion of the Galvez Plaza sculpture and stage cover has been delayed yet again, this time due to filming in the area. The nearly $1 million, stainless steel sculpture and stage cover at North Boulevard Town Square is now slated to be finished in June, rather than in late May as officials had previously hoped. It has been in the process of being built for months, and workers were recently forced to stop working on it while the Bonnie and Clyde miniseries and Search Party movie were being shot downtown, says Davis Rhorer, executive director of the Downtown Development District. Work to finish the crest can resume next week, he says. Progress on the project previously came to a halt earlier this year because of an ill-fitting piece of the massive overhead crest. The piece was reordered from fabricators in Kansas City. It arrived in April, and developers thought live performances could commence on the stage this month. Before that delay, they had hoped the project...
If the long-planned Rouzan branch library falls through, could the campus of the newly rebuilt Lee High School be a fallback location? It's an option the East Baton Rouge Library Board of Control is exploring, and a spokeswoman for the East Baton Rouge Parish School System says Superintendent Bernard Taylor likes the idea. "The [library board] staff reached out to us and I presented the idea to Dr. Taylor and … we are absolutely open to conversations with them," says EBR schools spokeswoman Susan Nelson. "Obviously, we would need to get board approval … but we want Lee High to be a community school and a community center." Preliminary discussions between the staffs of the library board and school system took place a couple of weeks ago—before the library board and Rouzan developer Tommy Spinosa hit the latest impasse in their long-running negotiations over construction of the Rouzan branch library. Though it appeared earlier this week that Spinosa and the board had...
If the Metro Council approves amending this year's capital improvement budget to free up $11 million for the purchase of the former Woman's Hospital campus on Airline Highway, the Baton Rouge Police Department's headquarters could be relocated there by the end of the year, says William Daniel, Mayor Kip Holden's chief administrative officer. While the former hospital building itself is outdated, has no use and will need to be demolished, Daniel says, the Physician's Tower on-site can be renovated with relative ease. "We can move the police in there pretty quickly," he says. The Metro Council will consider the budget amendment at its May 22 meeting, during which a public hearing will also be held on the matter. Daniel says it's important that the Metro Council approve the plan at its next meeting because the purchase agreement the city-parish signed in December for the 24-acre campus expires in early June—before the council would meet again following the May 22 meeting. "We're...
Paper and ink: After years of delays and negotiations, it appears the East Baton Rouge Parish Library Board of Control and developer Tommy Spinosa have reached an agreement over construction plans for the Rouzan branch library. Board President Travis Woodard tells Daily Report the board and the parish attorney's office expect to sign off on a revised cooperative endeavor agreement with Spinosa before the board's regular monthly meeting, which is Thursday. Read the full story here.
I sometimes get asked about using the popular Fannie Mae permanent loan for an apartment complex featuring commercial space, such as office or retail. As we try to develop more infill or downtown properties that mix commercial uses on the first floor with residential uses on upper floors, I expect the question to come up more frequently. And the good news is that Fannie Mae does allow for such financing, so long as special underwriting approaches are taken. First off, the two income streams need to be underwritten separately, such that residential expenses match up with residential income and commercial accounts also match up. The current Fannie Mae policy requires commercial income to be no more than 20% of the overall effective gross income of the total project, and also stipulates that the commercial income be underwritten at a minimum 10% vacancy. This arrangement is tougher with smaller properties but works fine with a larger property containing a higher ratio of residential to...
A converted residence at 601 St. Charles St., originally known as The Holt House and now included on the National Register of Historic Places, has sold for $193,000. It was purchased by NCP Properties LLC, which is represented by Lexlee Overton Roccaforte and Clay Roccaforte; the seller was Whitney Bank. The converted single-family residence, which contains 2,370 square feet and includes two parking spaces, had been listed for as much as $249,000. The actual sale price works out to $81.44 per square foot. The deal closed on April 22. The property is at the corner of St. Charles and France streets in Beauregard Town. The new owners intend to use the building as an office for their law practice. The seller was represented by Mathew Laborde with Beau Box Commercial Real Estate. The purchaser was represented by Danny Watts at Saurage Rotenberg Commercial Real Estate.
Just two months ago, the long-stalled Walmart Supercenter planned at Bluebonnet Boulevard and Burbank Drive finally seemed ready to get off the ground. Now it appears the 160,000-square-foot store, first announced in 2008, has hit another snag. In March, Daily Report obtained a DataFax construction report stating that the Bentonville, Ark.-corporation had put the project out to bid. According to that report, the estimated cost of construction was $7 million, and three pre-qualified contractors had been invited to bid: Clark Construction of McComb, Miss.; Crossland Construction of Columbus, Kan.; and Ewing Construction Co. of Corpus Christi, Texas. But sources familiar with the project confirm that Walmart rejected all three bids and now plans to put the project back out to bid. It is unclear whether price alone was the sole factor in the decision to rebid or if there were other considerations. It is also unknown whether the latest delay will affect that most recently announced...
Russell Mosely is looking to open a second filing of his still under-construction Long Farm development. Mosely filed an application for the building permits last week, seeking permission from city-parish regulators to develop 56 lots on the 11-acre second phase of his TND off Barringer Foreman Road. The addition would be called Long Farm Village and could be under construction by late summer, Mosely says. National developer D.R. Horton will build the homes, Mosely says. The Long Farm Village will have a "pocket park" with seating, sidewalks and landscaping. "Just another place for people to go relax," Mosely says. Homes in the second phase will be varied in size and will be built along tree-lined streets. Construction on a clubhouse and a 1,700-square-foot pool are set to begin in the next couple of weeks, he says. "The pool is going to have fountains and it's going to have a tanning ledge; it's going to be nice," Mosely says. Construction on the entryway and sidewalks around a pond...
If the Metro Council approves amending this year's capital improvement budget to free up $11 million for the purchase of the former Woman's Hospital campus on Airline Highway, the Baton Rouge Police Department's headquarters could be relocated there by the end of the year, says William Daniel, Mayor Kip Holden's chief administrative officer.
If the Metro Council approves amending this year's capital improvement budget to free up $11 million for the purchase of the former Woman's Hospital campus on Airline Highway, the Baton Rouge Police Department's headquarters could be relocated there by the end of the year, says William Daniel, Mayor Kip Holden's chief administrative officer. While the former hospital building itself is outdated, has no use and will need to be demolished, Daniel says, the Physician's Tower on-site can be renovated with relative ease. "We can move the police in there pretty quickly," he says. The Metro Council will consider the budget amendment at its May 22 meeting, during which a public hearing will also be held on the matter. Daniel says it's important that the Metro Council approve the plan at its next meeting because the purchase agreement the city-parish signed in December for the 24-acre campus expires in early June—before the council would meet again following the May 22 meeting. "We're...
The Baton Rouge METRO area continued its strong start to the year in March in the construction employment sector. According to the latest metro jobs report from the Associated General Contractors of America, Baton Rouge had 5,900 more people employed in the industry in March—an estimated 46,000 total—than it did during the month a year previous.
The East Baton Rouge Redevelopment Authority is asking Mayor Kip Holden for $425,000 to begin clearing land and doing site preparation work on the 40-acre, first phase of Smiley Heights, a 200-acre mixed-use development in Mid City that the RDA is developing. The funding request will be contained in the mayor's midyear, supplemental budget, which is currently being compiled by the administration and will likely be presented to the Metro Council either later this month or in early June. RDA President and CEO Walter Monsour says the first phase of Smiley Heights—which has been described as "an urban traditional neighborhood development"—will include a new Baton Rouge Community College campus with an automotive training facility as well as a Career Academy for EBR Schools. "This initial funding will be to clear and grub and start preparing the site," Monsour says. "We will also be doing some master planning as well as a housing survey so we can determine what type of housing...
A Metairie-based developer is hoping to move forward with a 600-acre, environmentally friendly, mixed-use development on River Road south of LSU. Charles Lambert, the property owner and developer, is awaiting approval from regulators to start clearing the site for the Village at Riverwood, which could ultimately include 1,550 homes. Lambert says he hopes to start developing the property, which he purchased in 1992, by early next year. About 130 acres between Elbow Bayou and River Road would be developed as part of the first phase, including residential lots and some commercial space. In addition to full-size homes, the draft plan filed with the Planning Commission also details more compact town and garden homes. Lambert says the project has been on hold for at least five years as market conditions slumped. But, he says, the Baton Rouge economy looks strong and "we're back on track." Plans call for a pedestrian-friendly urban village with 200,000 square feet of retail space and 18,000...
After years of delays and negotiations, it appears the East Baton Rouge Parish Library Board of Control and developer Tommy Spinosa have reached an agreement over construction plans for the Rouzan branch library. Board President Travis Woodard tells Daily Report the board and the parish attorney's office expect to sign off on a revised cooperative endeavor agreement with Spinosa before the board's regular monthly meeting, which is Thursday. Under the terms of the agreement—which is an amended version of a document first signed in 2010—Spinosa will agree to complete by November all the infrastructure work that's needed to begin construction of the library. The infrastructure work includes constructing roads, parking lots and utilities within the area of the TND on which the library will be situated, as well as turn lanes and signal modifications on Perkins Road. Previously, Spinosa had agreed to post a performance bond, but the parish attorney's office did not think...
Edging closer to 1,000 signatures, an online petition is bringing the debate about City Park's golf course back into the limelight. Should the 9-hole course be maintained and City Park grow around it, or should it be eliminated and the grounds added to the park's existing green space?
Developer Mike Wampold has filed for site plan approval to tear down One Lakeshore Place apartments on Stanford Avenue and build a new, upscale 240-unit apartment complex called Lakeshore Place on Stanford, says Ryan Holcomb, Planning Commission planning project coordinator. The aging apartment complex, built in 1963 on a roughly 5.5-acre site, is located next to the Crescent at University Lakes condos—also developed by Wampold—across the street from the LSU lakes. Because Wampold plans to build more than 100 residential units on the site, Holcomb says, he is required to get site plan approval for the project. Wampold's new plan is slated to go before the Planning Commission on June 17. Approval from the Metro Council is not required for the site plan, nor does Wampold need any permission to demolish One Lakeshore Place. —Steve Sanoski
For nearly three years, BancorpSouth "willfully refused to comply" with discovery requests made by developer Windy Gladney in his protracted court battle with the bank over $2 million in construction loans. So says 19th Judicial District Judge William Morvant, who delivered a major blow to BancorpSouth's case late Tuesday, when he threw out the bank's claim against Gladney and also dismissed its defense to allegations contained in a countersuit he filed against the bank. "The Court has lost confidence in the ability of [Gladney] to properly defend this matter based on the number and the extent of discovery abuses by the plaintiff … and when I say 'plaintiff' I mean the bank," Morvant says in a written transcript of his ruling, obtained by Daily Report. "The record in this case … is replete with instances that go beyond simple inadvertence or negligence. There are too many to write this off as a simple oversight or a slip up on the part of the bank." Gladney's...
Developer George Robinson is suing the city-parish and the East Baton Rouge Parish Planning Commission for denying preliminary approval of his planned subdivision, Mallard Trails, off Hoo Shoo Too Road. In a suit filed Tuesday, Robinson argues the Planning Commission acted arbitrarily and capriciously, and abused its discretion, when it denied his request last month to put 90 single-family lots on 57 acres on the south side of Hoo Shoo Too Road, east of Wood Duck Drive. Residents of the area largely opposed the planned subdivision, citing fears of increased traffic, road safety and drainage problems. Robinson's suit says that public opinion should not have factored into the Planning Commission's decision at this stage of the preliminary approval process. In contrast to, say, a requested zoning change, the suit argues that the preliminary approval process for a subdivision should not be influenced by public opinion, provided the applicant has complied with the city-parish Unified...
Developer Windy Gladney won a significant victory late Tuesday in his long-running legal dispute with BancorpSouth, when 19th Judicial District Court Judge William Morvant dismissed the bank's $2 million claim against Gladney and his partnership, Kleinpeter-Trace. In his ruling, Morvant also threw out BancorpSouth's defense to claims filed against it by Gladney in a countersuit. Morvant issued his ruling from the bench after a lengthy hearing over the production of bank records, emails and documents that Gladney's attorneys have been trying unsuccessfully for months to obtain from the bank. In a late December ruling, Morvant warned BancorpSouth was facing sanctions for failing to turn over the documents, but said the bank was entitled to an evidentiary hearing on the matter. That hearing was Tuesday. "We were very pleased with the outcome because the discovery in this case has been nothing but a struggle since the suit was filed," says Gladney's attorney Mary Olive Pierson. "You...
June 19 is the new date scheduled for the foreclosure sale of Perkins Rowe. A U.S. district judge this afternoon granted KeyBank National Association's request to postpone the auction, which was supposed to be held Wednesday. But sources familiar with the 3.5-year-old court battle between the Ohio lender and developer Tommy Spinosa say the June sale may also be postponed, as were previously scheduled foreclosure sales set for dates in March and May. That's because the bank keeps putting them off, which suggests the bank is trying to negotiate a deal with Spinosa. Why Spinosa would want the property is a no-brainer. If he can find investors willing to partner with him on the project—and sources say he has found them—he gets back a mixed-use development that has proven to be a financially viable and popular retail destination, while also getting out from under the more than $200 million he owes KeyBank and several smaller banks. Why KeyBank—which has fought Spinosa...
Owners of the Bluffs Golf Resort in St. Francisville have been quietly working to bring the once-troubled country club back to life. So far, the efforts appear to be paying off. Businessman Clyde DuBois, who joined Claude Penn as managing partner in January, helped guide the resort's cash flow from red to black within two weeks of taking over the club's management. Under his stewardship, new home construction, golfing and two restaurants on the resort grounds are booming, DuBois says. Play at the Arnold Palmer-designed golf course has increased by 30%, and membership is up almost as much since DuBois "reversed the nine," or reversed the direction of play of the first 10 holes, in April. The public 18-hole course is getting top rankings in national golf publications; and for the first time, later this month, it will host a U.S. Open qualifying event. That's a big turnaround for a course that was temporarily closed by an insolvent owner in 2009. —April Castro...
In the oven: Gambino's Bakery plans to move from its Essen Lane location to Panache Plaza at 8342 Perkins Road, between Essen and Bluebonnet Boulevard, by the end of the summer, says manager Paul Scelfo. The new 2,100-square-foot space will be "more suitable to our customers' wishes, as well as our needs," he says. That means a bigger retail area and a smaller kitchen. "The location we're in now is equipped for a lot more than what we do," Scelfo says. The New Orleans-based bakery has been in the Essen Lane location for almost three years.
Warren Buffett, the CEO and chairman of Berkshire Hathaway—in addition to being a really rich guy who got that way by being right about business investments most of the time—says in a recent CNBC interview that bonds are a "terrible investment" right now. His rationale for this position is pretty simple and time-tested: You buy things when they're priced low and sell when they increase in value. And at the moment, he says, bonds don't seem to have much upside potential. Buffett's thought is that bonds are already high right now because of the Federal Reserve's policy of buying up $85 billion in bonds each and every month, and that when the Fed stops buying, the prices should drop. How does this impact those of us who deal in real estate rather than bonds? If Buffett is correct, and remember that he has a pretty impressive track record, bond prices will fall and yields on bonds will increase. Since we get our pricing for permanent commercial real estate loans based on bond...
The Gulf Coast Research building at 7049 Perkins Road, situated next door to Spectrum Fitness Center, has sold for $780,000. The buyer was DB LeBlanc Properties. Ty Gose with NAI/Latter & Blum represented both the purchaser and seller, Gulf Coast Research, in the deal, which closed April 25. The building contains about 12,000 square feet, so the sale price calculates to roughly $65 per square foot. This is a free-standing office facility with 40 parking spaces. The purchaser bought it as a speculative investment and has made the building available for lease. (Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
Gonzales-based Broussard Paper is building a warehouse and distribution center on a 6.75-acre lot in the Sherwood Common Office Park. Broussard closed on the lot last week for $2.05 million and plans to complete the new warehouse by April 2014. The 45,000-square-foot warehouse and 7,500 square feet of office, showroom and training space will allow Broussard to consolidate two current locations—one in Gonzales and another on Choctaw Drive—into one, says Chuck Edwards, company president. The project is still in the design phase but will likely have a price tag of about $3.5 million, Edwards says. Broussard, which has been in operation since 1987, sells paper as well as janitorial, industrial and food service supplies. Broussard bought the property from Property Services Inc. —April Castro
The Baton Rouge metro area continued its strong start to the year in March in the construction employment sector. According to the latest metro jobs report from the Associated General Contractors of America, Baton Rouge had 5,900 more people employed in the industry in March—an estimated 46,000 total—than it did during the month a year previous. The 15% year-over-year increase made Baton Rouge the 11th-best-performing metro of the 339 tracked by AGCA. It follows a No. 13 ranking in February, when 45,300 people reportedly held construction jobs in the area, and a No. 11 ranking in January, when total construction employment was at 43,200. The Baton Rouge area also had a strong finish to last year, with a No. 8 ranking in the December jobs report and a No. 11 ranking in November. AGCA reports Baton Rouge is among 152 metros to see construction jobs increase in March, while 126 posted a decline and 61 saw stagnant employment levels. The March jobs report highlights "the...
Owners of the Bluffs Golf Resort in St. Francisville have been quietly working to bring the once-troubled country club back to life. So far, the efforts appear to be paying off. Businessman Clyde DuBois, who joined Claude Penn as managing partner in January, helped guide the resort's cash flow from red to black within two weeks of taking over the club's management. Under his stewardship, new home construction, golfing and two restaurants on the resort grounds are booming, DuBois says. Play at the Arnold Palmer-designed golf course has increased by 30% and membership is up almost as much since DuBois "reversed the nine," or reversed the direction of play of the first 10 holes, in April. The public 18-hole course is getting top rankings in national golf publications; and for the first time, later this month, it will host a U.S. Open qualifying event. That's a big turnaround for a course that was temporarily closed by an insolvent owner in 2009. Interest from potential homebuyers has...
For the second time this year, a scheduled foreclosure sale of Perkins Rowe will be postponed. Daily Report has learned that KeyBank National Associates, the Ohio lender that is owed more than $200 million on the project by developer Tommy Spinosa, plans to file documents Tuesday in U.S. District Court asking that the sale, scheduled for Wednesday, be postponed. Neither officials with KeyBank nor Spinosa will comment. The move suggests, however, that a deal involving Spinosa, could be in the works. The mixed-use development was originally scheduled to be auctioned in late March, but the bank asked the U.S. Marshal at that time to put off the sale until May 8. No explanation was given then, either. —Stephanie Riegel
Take a leisurely stroll and sample delicious fare Friday during the "Wine Walk on Rosemont" to benefit the Webb Park Playground Renovation Campaign. The group is hosting its second wine walk down Rosemont Drive to raise funds for park restoration, and the event is open to all neighbors, friends and supporters. Homeowners will open their doors for three stops, serving a variety of wine and hors d'oeuvres. Tickets can be purchased in advance or at the event. Click here for more information.
On a Thursday morning, Raymond Cutrer's booth at the Red Stick Farmers Market has a line five customers deep. Cutrer's Meat Market has quite the selection: homemade salami, ground beef, soup bones, premium steaks and smoked sausage made with a 100-year-old family recipe.
The East Baton Rouge Redevelopment Authority received a $60 million federal New Market Tax Credit allocation in 2009, which went toward two YMCAs; a Hampton Inn & Suites; the Emerge Center for Communication, Behavior & Development; and a green technologies project at the Honeywell plant in north Baton Rouge. The RDA didn't get any New Market credits in the most recent round of allocations announced last week, but that doesn't mean they're slowing down, says President/CEO Walter Monsour. He says RDA staffers are going through the list of possible projects and reaching out to other community development entities in other parts of the country, some of which have a national mission, to see if those entities might be interested in deploying their credits in East Baton Rouge Parish. On the Honeywell project, two other CDEs partnered with the RDA, he explains. The RDA also plans to seek a...
Costco is interested in the former site of a Coca-Cola bottling facility off Airline Highway, and East Baton Rouge Parish officials are pushing for a tax increment financing district to help close the deal. Patrick Mulhearn, who directs studio operations for Raleigh Studios Baton Rouge at the nearby Celtic Media Centre, is among those hoping the deal goes through. He says Celtic already is leasing a building on the site, and Celtic tenant Pixomondo is moving in. "We have gone ahead and renovated it, with the understanding that we're going to be able to acquire it," Mulhearn says. The problem is that Celtic only is interested in about six or seven acres of land, but Coca-Cola wants to sell the approximately 26-acre tract all at once. If Costco buys the land, Mulhearn says, then Celtic could buy what it wants from Costco. Celtic may build a mill shop on the new property, where sets could be constructed and decorated. Universal Pictures has booked space at Raleigh for a possible...
It fills you up: Toothbrushes, bread and wine have been the hot sellers at Baton Rouge's first downtown grocery store since it held a soft opening Thursday with little fanfare. While not a full-service grocery store, Downtown Grocery, at the corner of Third and Florida streets, is the closest thing to it downtown. As evidence of that, the small grocer had completely run out of bread by Saturday. A grand opening and ribbon cutting is slated to take place Monday. Read the full story from Daily Reporthere.
I've received some questions, following my recent column on prepaying permanent debt, in which readers want to know if a purchaser can simply assume the debt, thus avoiding a potentially large prepayment penalty. The answer is that in most situations a purchaser can assume the debt after paying a 1% fee and going through the approval process, but they might not want to do so if it negatively impacts their return. Assume that you bought a property with $80,000 in net income for $1 million, at about an 8% cap rate, and you borrowed $750,000 from a permanent lender who charged you 5% interest. You put up 25% of your own money and pocket about $31,700 per year after debt service, for a cash-on-cash return of about 12.7%. Through hard work and some luck, you quickly increase the net income to $88,000 and decide to sell the property at the same 8% cap rate for $1.1 million, with the purchaser assuming your $750,000 debt (there would not have been much amortization in the first few years of...
Chaseland Properties LLC, represented by Donald and Wanda Chase, has purchased a retail showroom building for $650,000 from ENFP LLC, represented by June Jackson and Stacey Davis. Located on Jefferson Highway just east of Highland Road, near Round Oak Subdivision, the facility encompasses approximately 6,570 square feet. According to listing agent Steve Legendre of Beau Box Commercial Real Estate, the property is in excellent condition. The building, which is about three years old and includes a retail showroom area as well as an air-conditioned warehouse space, had been listed for as much as $695,000. The deal closed on April 23. The building is separated into two suites, with one being owner occupied and the other leased. The property also includes a Lamar Advertising sign that helps offset rents on the property. The selling agent was Brent Struthers with Beau Box Commercial Real Estate. The new owner intends to lease the property and hold it as an investment.
With tax reform a hot topic on Capitol Hill these days, real estate expert Nicolas Retsinas says eliminating the mortgage interest deduction would not have the devastating effect that many in his industry say it would. "The mortgage interest deduction is a sacred cow, but I think that in an era when everybody is trying to look at the budget, there is some question as to whether the wealthy should continue to have a bite of that cow," says Retsinas, a former Federal Housing Commissioner and director emeritus of Harvard University's Joint Center for Housing Studies. Speaking to Forbes about the U.S. housing market recovery in general, Retsinas says the mortgage interest deduction is "is understandably at risk today" because it reduces the amount of money available to the federal government by about $100 billion a year. Realtors, homebuilders and many others in the industry typically argue that eliminating it would discourage home sales and undermine home values over time. But...
The rate of Capital Region homes in foreclosure fell in February compared to both January and the same month last year. According to a new report from CoreLogic, the percentage of Baton Rouge-area homes in foreclosure stood at 2.1% in February, down from 2.16% the month previous and 2.46% in February 2012. "Foreclosure activity in Baton Rouge was lower than the national foreclosure rate, which was 2.85% for February 2013," notes CoreLogic. The local rate was also below the state rate of 2.22% in February. The Capital Region's mortgage delinquency rate—or the percentage of home loans three months or more past due—also posted a decrease on the month. At 5.18% in February, it was down from 5.36% in January and 5.61% during the same month last year. The local foreclosure rate in February was only slightly higher than the 2.09% rate Baton Rouge posted in November, which was the lowest rate in nearly three years. The last time the local foreclosure rate was below 2% was...
Costco is interested in the former site of a Coca-Cola bottling facility off Airline Highway, and East Baton Rouge Parish officials are pushing for a tax incremental financing district to help close the deal. Patrick Mulhearn, who directs studio operations for Raleigh Studios Baton Rouge at the nearby Celtic Media Centre, is among those hoping the deal goes through. He says Celtic already is leasing a building on the site, and Celtic tenant Pixomondo is moving in. "We have gone ahead and renovated it, with the understanding that we're going to be able to acquire it," Mulhearn says. The problem is that Celtic only is interested in about six or seven acres of land, but Coca-Cola wants to sell the approximately 26-acre tract all at once. If Costco buys the land, Mulhearn says, then Celtic could buy what it wants from Costco. Celtic may build a mill shop on the new property, where sets could be constructed and decorated. Universal Pictures has booked space at Raleigh for a possible...
A provision of the federal immigration reform bill by the so-called Gang of Eight senators that would cap the number of available guest worker visas for construction jobs could further worsen the worker shortage the industry already faces in the Capital Region and across Louisiana, says Ken Naquin, CEO of the Louisiana Associated General Contractors.
For the past few years, tenants have had the upper hand in the Baton Rouge office market. Starting in 2009—and especially in 2010 and 2011—owners were cutting their rates to attract customers, says Branon Pesnell of Beau Box Commercial Real Estate. But while there still are some tenants and buyers who think they can "beat up" on renters and sellers, he says, overall, the market has stabilized. "We've kind of reached that intersection of optimism and pessimism," Pesnell says. "It's really become more of an equal market for both sides." Engineering and construction firms, which were hit hard by the recession, are making a comeback because cheap natural gas is spurring more work at the region's chemical plants. Most brokers are reporting higher deal volume and less foot-dragging by decision makers. There has even been some interest in new construction of garden offices along Bluebonnet Boulevard and Jefferson Highway. Office occupancy increased from about 83% last year to...
A roughly 8,000-square-foot commercial building to be anchored by a physician's office is going up at the intersection of Jefferson Highway and Rue De Belle Maison, near Bluebonnet Boulevard. "There's going to be about six bays there, and [the owner's] looking for retail" to fill the remainder of the development, says Michael Johnson of Acadiana Constructors, the general contractor on the project. "It's being done in two phases, and we're on the first phase now, so there's the possibility of extending that building." Johnson says he's not at liberty to disclose the name of the physician who is behind the development. He does say it's a speculative project, however, and that there are no other tenants lined up as yet. Charlie Colvin of Beau Box Commercial Real Estate, who is representing the development, did not return calls for further comment. The building has been framed in recent weeks and should be completed soon, Johnson says. "It should be stuccoed in the next week, and then...
Something's cooking: Wayne Stabiler, the man behind The Little Village and Le Creolé restaurants, is almost ready to open his next venture: Stab's Steak and Seafood. The high-end restaurant, focusing more on steaks than seafood, should be ready to open by June in the traditional neighborhood development in Central called The Village at Magnolia Square, he says. Daily Report has more details here.
Last week we looked at scenarios in which it's more appropriate to use bank debt than permanent debt, concluding that permanent debt works better if your project is stabilized and bank debt works better if there is repositioning or further stabilizing to be done. This week we look at another decision point: holding period. Most permanent loans are set to mature in 10 years, which is great if you want to lock in a low interest rate for an extended period. But the picture gets cloudy if you want to sell the property within that 10-year period. Unlike residential loans, which can be prepaid without a prepayment penalty, commercial real estate loans done in the permanent market have prepayment penalties—and they can be substantial. If you decide to sell the property before the 10-year maturity date and your purchaser does not want to assume your loan, you have...
In a community that prides itself on food and has no shortage of dining establishments—about one for every 150 residents, no less—you might think a shopping center on Highland Road with 4,050 square feet of ready-to-use restaurant space would be in demand. But for more than 18 months, the former Monjunis restaurant site in the Kenilworth Shopping Center has remained vacant. The restaurant closed unceremoniously in the fall of 2011, and leasing agent Chris Gremillion of NAI/Latter & Blum has yet to find another tenant, even though furniture, fixtures and culinary equipment have remained in place and ready for use. "It's a unique opportunity because it's a fully equipped restaurant that's ready to go," Gremillion says. "It's a turn-key kind of situation." But while a few local restaurants have expressed interest, there have not been any meaningful offers for the site, which is priced at $15.75 per square foot, or around $5,300 per month, not including common area...
Two new filings at the University Club Plantation are in the works for a summer opening. The 18-hole golf course community plans to open 70 lots in two subdivisions—Tiger Crossing and Lake Crest—ranging from $75,000 to $137,000 per lot. Seventeen lots already are under contract, including 12 for custom homes and five from speculative builders, says developer Sinclair Kouns. The University Club hasn't opened a new filing since 2008, but Kouns says interest in new home construction has skyrocketed this spring. "It's been a slow four or five years," Kouns says. "But the last two months have been overwhelming. The response and the inquiries we've had in this price range, not only from builders, but from individuals as well … have increased tenfold." Kouns is targeting homes in the $400,000 to $650,000 range, a price range where he says inventory is lacking for prospective homebuyers. Kouns says the filings will open in the next 30 days or as soon as road construction...
For the past few years, tenants have had the upper hand in the Baton Rouge office market. Starting in 2009—and especially in 2010 and 2011—owners were cutting their rates to attract customers, says Branon Pesnell of Beau Box Commercial Real Estate. But while there still are some tenants and buyers who think they can "beat up" on renters and sellers, he says, overall, the market has stabilized. "We've kind of reached that intersection of optimism and pessimism," Pesnell says. "It's really become more of an equal market for both sides." Engineering and construction firms, which were hit hard by the recession, are making a comeback because cheap natural gas is spurring more work at the region's chemical plants. Most brokers are reporting higher deal volume and less foot-dragging by decision makers. There has even been some interest in new construction of garden offices along Bluebonnet Boulevard and Jefferson Highway. Office occupancy increased from about 83% last year to...
DSLD Homes' plan for the second filing of its Hoo Shoo Too Lakes subdivision may hit a snag tonight when it comes before the Planning Commission at its monthly meeting. The homebuilder has filed an application for a Planned Use Development, or PUD, consisting of 41 low-density, single-family homes on a 15-acre site that is adjacent to the first filing of the development. The company is currently in the process of acquiring the property from Dick Brien, who is hoping to sell the back portion of his 22-acre tract, which is sandwiched between the first filing of Hoo Shoo Too Lakes and Mallard Crossing. But as so often happens in local land-use controversies, nearby residents oppose the plan on the grounds that it would bring unwanted traffic and congestion to their neighborhood. They also oppose connecting the new development to their subdivision, an issue that has thwarted other PUDs in recent years. At a neighborhood meeting last week, Metro Councilman Joel Boé's Metro Nine Committee,...
While the pre-recession easy money may be gone for good, financing for real estate pretty much is back to normal, says Brian Andrews, who spoke about finance at today's annual Trends real estate seminar.
While the pre-recession easy money may be gone for good, financing for real estate pretty much is back to normal, says Brian Andrews, who spoke about finance at today's annual Trends real estate seminar. "Financing is available again in our area," he says. "We're kinda-sorta on the road to getting back." Apartments are "the darling of the industry right now," while industrial warehouses, grocery-anchored retail centers, downtown offices, and mobile home parks also are attractive to lenders. Other deals might be considered if you have a "good story" to tell, although owner-occupied and pre-leased projects remain far more appealing than speculative construction. For many banks, caution has given way to business as usual, Andrews says, and conduit lenders are making deals again. The federal government is helping out by keeping the prime interest rate low and continuing to support Fannie Mae, Freddy Mac and HUD, although the feds could change their game plan at some point, Andrews...
The Capital Region real estate market is continuing to improve across most sectors. So say industry experts who are speaking this morning to more than 600 real estate professionals at the 25th annual Trends in Real Estate Seminar, which kicked off at 7:30 and runs through noon at the BREC Independence Park Theater. Some highlights coming from the seminars today are: • In commercial real estate, financing is becoming more readily available for commercial and residential projects from a growing number of sources. Banks, credit unions and thrifts are investing in construction, with both short- and long-term loans. • In the industrial sector, demand for warehouse space is up. The vacancy rate at the end of 2012 was 11.6%, compared to 14.3% at the end of 2011. The net change in occupied inventory from 2011 to 2012 nearly quadrupled the absorption rate from 2010 to 2011, a positive trend that is expected to continue, thanks to an industrial construction boom.
A spokesman for Tommy Spinosa says the cooperative endeavor agreement the developer has been negotiating with the city-parish over construction of the long-awaited Rouzan branch library is completed in principal, though details are still being finalized. But as of this morning, the head of the Library Board of Control, which meets this afternoon, says he won't be satisfied until the documents are signed and the infrastructure surrounding the facility is under construction. "I am disappointed it has not been resolved yet," board Chairman Travis Woodard tells Daily Report. "I would love to be surprised this afternoon to hear the deal is all done, but that is not my appreciation at this point." After years of delays, the library board finally gave Spinosa—who is donating to the city-parish the property within his development off Perkins Road for the library and is also agreeing to do the surrounding infrastructure work—a February deadline to either post a performance...
Developer Pete Clements has tentatively secured the $130 million he needs to begin developing his long-awaited, mixed-use downtown project known as River Park, according to his consultant on the development. Mark Drennen, who has been working with Clements for more than four years, says details of the deal are being finalized and that he expects an announcement in the next couple of weeks. "Actually, I thought an announcement would have been made last month," says Drennen, who declines to discuss the investors or the source of the capital. "It just takes forever when you have all the lawyers involved." Plans for the 50-acre River Park, which would be located north of Hollywood Casino on the riverfront, include an entertainment district, office space, condos and apartments. Clements plans to develop first the entertainment district, which will include hotels, restaurants, bars and music clubs. The establishments will be national chains, not locally owned businesses, Drennen says.
March has been the best month yet this year for home sales in the Capital Region, with approximately 16% more sales recorded than in March 2012, according to the latest report from the Greater Baton Rouge Association of Realtors. A total of 765 homes were sold during the month in the eight-parish region tracked by the GBRAR, which is 107 more than the total for March last year. Sales were up in January and February, but at the more modest pace of 9% and 5%, respectively. The March report also suggests the Capital Region market has turned the corner to a seller's market. Months inventory—or the number of months it would take to sell all homes on the market at the current pace—was at 5.3 in March, down from 6.9 a year earlier. A months inventory reading below 6 months is generally considered to indicate a seller's market. At the end of the first quarter of the year, home sales in the Capital Region—which includes East Baton Rouge, Ascension, Livingston, West Baton...
Downtown officials say delays in completing the Galvez Plaza sculpture and stage cover are nearing an end. Construction on the nearly $1 million, stainless steel sculpture and stage cover at North Boulevard Town Square came to a halt earlier this year because of an ill-fitting piece of the massive overhead crest. The piece was reordered from fabricators in Kansas City and is expected to arrive this week. That should clear the way for completion of and live performances on the downtown stage by the end of May, says DDD Executive Director Davis Rhorer. Officials had hoped the project would be complete in time for the April start of the spring concert season, including last weekend's Blues Festival and the ongoing weekly Live After Five concerts. But the mistake in the sculpture, which doubles as a stage cover, has postponed the project's conclusion by several months. "We'll probably plan something special for it; it's a very special piece," Rhorer says, comparing the sculpture to...
Water world: For anyone who has ever watched the ABC television series Wipeout and boasted, "Oh, I could do that," the opportunity to prove it has arrived. Cajun Lagoon—the Capital Region's newest amusement park—offers what's called aqua challenge courses. Essentially a collection of obstacle courses made of inflatables, the 13-acre park near Watson is slated to open May 4. Daily Report has more details here.
I've been fielding calls recently from investors who are wondering whether it would be better to get bank financing for their deals or go to the permanent market. The answer I give is similar to what I tell my students when they ask me similar questions: It depends on the circumstances. Now, I don't mean "it depends" like when you ask your attorney for an answer, and she says: "That's really a question for the jury." Or when you ask your accountant if a deduction is valid, and he says: "It depends on whether you get audited"—at which point you go to your attorney for advice (see first example). And my "it depends" definitely isn't the same as when you ask your appraiser if he is almost finished with a report, and he says: "It depends; who are you again?" (this doesn't apply to all appraisers, of course, but you know who I mean). As to the financing version of "it depends," there are a few solid factors to be considered, the first of which is whether the property is stabilized,...
Though the property had been listed for $650,000, D & B Rushing Property LLC sold a retail commercial warehouse building to Alimorad Y. Haghighi II LLC for $445,000 on April 2. Ryan Greene and Wade Greene with Maestri-Murrell Commercial Real Estate brokered the transaction. At 6,891 square feet, the building's sale price works out to about $64.50 per square foot. The property is located on the south side of Coursey Boulevard, between Stumberg Lane and Hickory Ridge Boulevard. The building was formerly occupied by U.U. Rushing Floors and Interiors. The new owner will occupy the building. (Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
JPMorgan Chase and Wells Fargo, the nation's largest banks, say they've seen a decline in applications for home loans, The Washington Post reports, a sign that the strength of the housing recovery may be waning. At JPMorgan, applications fell 8% in the first quarter, compared with the previous quarter, though they were up 1% from a year earlier. Overall revenue from its mortgage division fell 31%. Wells Fargo's mortgage applications also fell 8% in the opening quarter of the year, compared with the last three months of 2012, and were down 25% from the first quarter of 2012. The figures, however, aren't a perfect measure for the health of the housing market. The two banks saw mortgage revenues fall partly because competition increased, squeezing profit margins. In addition, the record-low costs of making loans—spurred by stimulus efforts by the Federal Reserve—have started to rise again. Ken Usdin, an analyst with investment banking firm Jefferies, says the pressure...
Mattress Firm is continuing its Baton Rouge expansion with a new location in the old Blockbuster store on Millerville Road near Interstate 12. The new location under development is expected to open within the next 30 days, says Dottie Tarleton, a broker with Stirling Properties who handled the leasing agreement. The 5,500-square-foot store is located in front of Super Target, near Best Buy, Lowe's, Petsmart, Office Depot and Chick-fil-A. It marks the sixth Baton Rouge Mattress Firm location. The new store also marks the final Baton Rouge Blockbuster to get a new tenant since the brick-and-mortar video rental retailer succumbed to the digital age. Shortly after Blockbuster filed for bankruptcy in 2010, the building was purchased in 2011 by Texas-based investor Edry Commercial Properties for a total price of $1 million. Almost a dozen former Blockbuster locations in Baton Rouge have been repurposed, including an Airline Highway location that also has been redeveloped into a Mattress...
March has been the best month yet this year for home sales in the Capital Region, with approximately 16% more sales recorded than in March 2012, according to the latest report from the Greater Baton Rouge Association of Realtors.
March has been the best month yet this year for home sales in the Capital Region, with approximately 16% more sales recorded than in March 2012, according to the latest report from the Greater Baton Rouge Association of Realtors. A total of 765 homes were sold during the month in the eight-parish region tracked by the GBRAR, which is 107 more than the total for March last year. Sales were up in January and February, but at a more modest pace of 9% and 5%, respectively. The March report also suggests the Capital Region market has turned the corner to a seller's market. Months inventory—or the number of months it would take to sell all homes on the market at the current pace—was at 5.3 in March, down from 6.9 a year earlier. A months inventory reading below 6 months is generally considered to indicate a seller's market. At the end of the first quarter of the year, home sales in the Capital Region—which includes East Baton Rouge, Ascension, Livingston, West Baton...
Costco Wholesale Corp. is awaiting approval from the state on its plan to accommodate increased traffic flow expected near the intersection of Airline Highway and Interstate 12 once its wholesale superstore is built.
Residential markets in most sectors showed increases in sales volume in the previous 12 months. Total sales volume for the Greater Baton Rouge Multiple Listing area increased more than 15% from March 2012 through February 2013 after increasing only 3.91% the previous 12 months.
Developer Richard Carmouche is planning to build 100 new homes in The Settlement at Willow Grove and has lined up his first commercial tenant for the development—Bistro Byronz, which will open its second Baton Rouge restaurant some time next year. "Our concept has really gelled, and it's really taking off," says Carmouche, who began the project in 2007 shortly before the real estate collapse and has persisted with the project over the past six years despite challenges. The need for the latest residential filing—which, when completed, will fill out the 350-home development—came much more quickly than Carmouche anticipated. "We're just finishing up construction on a group of 49 houses that I thought would last me all year," he says. "In the first quarter we sold all but six, so we need more inventory." The new homes, which will be located in the rear and on the east side of the development, will range from 2,500 square feet to more than 5,000 square feet, in keeping...
Residential construction is set to begin in the next two weeks on The Preserve at Harveston, the 95-acre, first phase of Mike Wampold and John Fetzer's planned 1,200-acre TND straddling the Bluebonnet Boulevard extension. Some 350 homes are planned for The Preserve, 93 of which will be constructed on a 33-acre tract that will be the first part of the first phase, Fetzer says. Five local builders have been selected for the project: Colby Constructors, Distinctive Homes by Watson, Dupree Construction, Fetzer Properties of Louisiana and Unified Construction Group. They were selected after a careful vetting by Wampold and Fetzer from about 20 contractors who were interested in working on the project. "We went out and just looked at their product and in most cases we kicked the tires pretty good," Fetzer says. "We just felt these five were the ones we wanted to start with." Homes, which are being designed by LRK's Mike Sullivan, will be priced in the low-to-mid $300,000 range for smaller...
Details on a potential tax increment financing deal for a Costco superstore planned at Airline Highway and Interstate 12 will be revealed on May 8, when a public hearing will take place. The Metro Council on Wednesday approved setting the hearing, but no other details on the envisioned TIF have been set. Metro Councilman Joel Boé says the council will be as eager as the public to see details of the TIF structure. "Nobody had heard or seen anything about it" before Wednesday's meeting, he says. "I'm open-minded to look at it, but having not seen any cost-benefit analysis on it, it's hard to say anything about it right now." While some TIF structures allow developments within a designated area to charge additional sales tax on purchases made within to offset construction costs, city-parish Finance Director Marsha Hanlon told Daily Report on Wednesday: "As I understand it, this would be a rebate" for Costco. The city-parish could opt to rebate part or all of its 2% local sales...
Is spec construction back in the local office market? A Shreveport developer apparently thinks so. E. J. Gaiennie is nearing completion on the first of eight units he is constructing on his new development, Sherwood Common Office Park. The complex is located at 4600 Sherwood Common Blvd. on a three-acre tract Gaiennie acquired in late 2011 for $897,000. Andy Roby of NAI/Latter & Blum Commercial Real Estate, who represents the developer, says the eight units will be constructed gradually, based on demand. But he says market research shows a need for the product. "There is demand for this because everything else in that area is older," he says. "This will be new, and there will be a lot of amenities—good finishes and high ceiling—in the units." The units will range in space from 1,137 to 4,592 square feet and will be available for sale or lease as single suites, or in groups of two, three or four. Roby says it's too soon to say how the units will be priced or whether they...
The Metro Council will consider today a proposal from Mayor Kip Holden's office to begin the process of creating a special "economic development district"—that is, set the boundaries for a tax increment financing zone—for the land on which a Costco superstore is planned. City-parish Finance Director Marsha Hanlon says specifics of the potential TIF structure have not yet been determined. However, while some TIF structures allow developments to charge additional sales tax on purchases made within to offset construction costs, Hanlon says, "As I understand it, this would be a rebate" for Costco. The city-parish could opt to rebate part or all of its 2% local sales tax to Costco, which is planning to build a $12 million, 148,000-square-foot superstore on Dawnadele Avenue, near the intersection of Airline Highway and Interstate 12. Plans also call for an adjoining gas station with 16 pumps. "The first step is to create the district and hold a public hearing on it," says...
A House committee is scheduled to take up a proposed constitutional amendment Wednesday that would make it easier for redevelopment authorities around the state to seize blighted properties that have unpaid property tax liens against them. East Baton Rouge Redevelopment Authority President and CEO Walter Monsour, who has worked on the legislation for the past several months, will be among those testifying before the House Ways and Means Committee in favor of House Bill 256. "The whole thrust of the legislation is to deal with properties that have been abandoned—properties the city or parish is forced to maintain and has not been able to collect on the maintenance they have incurred over the years," says Monsour. The amendment, which would have to be ratified by voters in a statewide election, would reduce the redemption time owners of blighted property have to pay unpaid taxes from 36 to 12 months. In New Orleans, it would reduce the redemption period from 18 to 12 months. A...
Construction is set to begin in the next 30 days on homes in the Villas at Casa Colina, a 25-acre residential development off Highland Road acquired last summer by a joint venture of several local developers. Level Construction owner Todd Waguespack, who is among those developers, says the 19 homes will be either 3,100 or 4,200 square feet and will be priced somewhere between $500,000 and $700,000. "I think there is going to be great demand for them," says Waguespack, who co-owns the development with John Engquist, Roland Kimbrough and Jack Iverstine. "There's really no other new construction in that area in that price range." Waguespack and the others bought the subdivision in July out of foreclosure from First American Bank, which had taken back the unfinished project from its previous owners in 2007. Its lots measure 65 by 150 feet. Four lots were already sold when Waguespack's group acquired the property. —Stephanie Riegel Read the rest of the new Real...
By the numbers: The number of building permits issued across East Baton Rouge Parish in February was down 14% compared to the same month a year ago, according to a new report from the city-parish Public Works Department. But while the total of 1,641 permits issued in February was lower than the 1,912 in February 2012, the number of permits for commercial projects was slightly up on the month—70, compared to 68. Daily Report has more details and the full February report here.
All federal agencies have been struggling with how to handle the sequestration mess up on Capitol Hill, and some have been told to furlough full-time workers sporadically over a five-month period to save money. Rather than try to work out an enormous number of time sheet modifications, the Department of Housing and Urban Development—those folks that brought us the popular 221(d)4 apartment construction loan—plans to shut down completely for seven days between May and August this year. HUD operations will be shuttered May 10 and 24, June 14, July 5 and 22, and August 16 and 30. According to The Washington Post, the HUD hierarchy decided to avoid burdensome recordkeeping and close the agency after assessing "the logistical complications that would be involved for personnel managers in trying to organize days off for thousands of employees, not to mention their vacation and sick days." What do these departmentwide closures mean for the investment and development...
The Burger King at 17082 Airline Highway in Prairieville has sold for $1,637,000. US 61 Holdings LLC sold the property to Chang Family Investments LLC. Justin Langlois of Mike Falgoust & Associates Commercial Real Estate brokered the transaction on the 2,400-square-foot restaurant. The sale price calculates to about $680-per-square-foot, but the sale price was also based upon the income generated by the lease. "We are continuing to see compressed cap rates, and I'm not seeing many investment options for those looking to buy," Langlois says. "The net operating income and sales price generated a return to the owner that exceeded 7%. This was the reason they purchased the property." (Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
Some 600 people are expected to attend the 25th annual Trends in Real Estate Seminar, an event highlighting what's happening in all sectors of the Capital Region market. It's set to take place Thursday, April 18. This year's event chairman, Branden Barker, says the presentations by local market experts will once again touch on all sectors—including multifamily, office, residential and retail—as well as the financing picture, with a focus on the forecast of what's to come. 225 Publisher Julio Melara is serving as this year's MC for the event. Trends was launched in 1988 as a joint project of the Commercial & Investment Division of the Greater Baton Rouge Association of Realtors and LSU's Real Estate Research Institute. Registration is now open to real estate professionals as well as the public. Advance registration is $50, while admission at the door is $60. The seminar begins at 7:30 a.m. at the BREC Independence Park Theater, 7800 Independence Blvd., and will...
The manager of Cortana Mall says he believes Baton Rouge is a "two-mall town" that has all the elements needed to revive the ailing shopping center at Airline Highway and Florida Boulevard. The 37-year old mall, which is just 54% occupied, is under new ownership after investors purchased the property last month for $6 million, promising to breathe new life into it. In its heyday, Cortana was the region's premier shopping destination. But since the Mall of Louisiana opened in 1997, Cortana has struggled with changing demographics and a loss of major retailers. Fred Meno, president and CEO of asset services for mall-manager The Woodmont Company, contends that Cortana is well-positioned for prosperity. With a good location and good traffic, he says, the fundamentals for retail success are already in place. A recent market analysis showed an estimated traffic count near the mall of 100,000 vehicles a day. The new owners, Moonbeam Equities, have a strategy to lure value-oriented retailers...
Construction is set to begin in the next 30 days on homes in the Villas at Casa Colina, a 25-acre residential development off Highland Road acquired last summer by a joint venture of several local developers. Level Construction owner Todd Waguespack, who is among those developers, says the 19 homes will be either 3,100 or 4,200 square feet and will be priced somewhere between $500,000 and $700,000. "I think there is going to be great demand for them," says Waguespack, who co-owns the development with John Engquist, Roland Kimbrough and Jack Iverstine. "There's really no other new construction in that area in that price range." Waguespack and the others bought the subdivision in July out of foreclosure from First American Bank, which had taken back the unfinished project from its previous owners in 2007. Its lots measure 65 by 150 feet. Four lots were already sold when Waguespack's group acquired the property. —Stephanie Riegel
The number of building permits issued across East Baton Rouge Parish in February was down 14% compared to the same month a year ago, according to a new report from the city-parish Public Works Department. But while the total of 1,641 permits issued in February was lower than the 1,912 in February 2012, the number of permits for commercial projects was slightly up on the month—70, compared to 68. There were 122 permits issued for new residential builds, additions and renovations, down from 138 in February a year ago. Through the first two months of the year, permitting in 2013 lags 2012 numbers by 7%—3,269, down from 3,515 last year. The largest commercial project permitted in February was Lipsey's Inc.'s new 84,000-square-foot, two-story warehouse on the corner of Reiger Road and Exchequer Drive that will house the headquarter offices and distribution center for the wholesale firearms distributor. The facility, valued at about $9.4 million, is being built on a 5.5-acre...
While little has been heard publicly in recent years about River District, the planned mixed-use development along the Nicholson Drive corridor, Dalis Waguespack of Moreno Properties says prominent architect Steve Oubre is in the process of finalizing the master plan. "We had to take a break," because of the recession, she says. "Things are coming back together. Lending is available. The housing market is turning around. We're getting excited again over it. We never lost the enthusiasm for the project." Waguespack didn't want to discuss the still-evolving details about the development on 45 acres near Magnolia Mound Plantation, although media reports dating back to 2008 describe a "smart-growth, new urbanist community" with multifamily residences, retail and office space. Waguespack says other projects along the corridor, such as the redevelopment of the former Prince Murat site, are good for River District. "Our studies are strong, and we're excited to have Steve doing it," she...
It's been about 10 months since the Metro Council awarded a $1.5 million design contract for a new downtown library to a joint venture by Baton Rouge-based WHLC Architecture and Schwartz/Silver Architects of Boston. Officials from the library system and the design firms are now ready to give the public a glimpse of what the new library at 120 St. Louis St. might look like. An open house-style design update will take place from 4 to 7 p.m. Wednesday in the atrium of the Louisiana Arts and Science Museum, 100 South River Rd., at which architects and library staff will discuss progress on the design process, answer questions and take public comments. The project has been the source of controversy in recent years, both for its estimated cost—$19 million is currently committed to it, including design and engineering work—and for the process...
When the deal goes down: A deal to sell the historic Richoux Building at 302 N. Third St. downtown has closed for $1.2 million. The building—well-known for its neon Coca-Cola sign—was purchased by local businessman Mike Crouch on Thursday from attorney Danny McGlynn, who acquired the midcentury building in 2005 and tried unsuccessfully to redevelop it. Daily Report has more details here.
It's that time again when I tell you that interest rates are low—very low. The prime rate, which is the index most commonly used for short term and floating rate debt, is currently resting at 3.25%, where it has been since January 2009. The driving factor for the prime rate is the federal funds rate, which has remained near zero over the same period. Through the Federal Open Market Committee, the Federal Reserve has stated that the federal funds rate will be held at current levels until at least 2015. Increasing the rate will be triggered by the reduction of national unemployment rate to 6.5% or lower. Even then, the rate will be increased, but will still be held below its expected long-run value. Meanwhile, the benchmark 10-year Treasury rate, the index we use for long-term loans, was around 1.85% at the end of March 2013, and was about 9 basis points higher at this time last year. Long-term Treasury rates are also being held low by activities of the Federal Reserve known as...
A retail center located within Southgate Village on Burbank Drive that's home to Balfour House, Quizno's, Princeton Review Operations, Cold Stone Creamery and CC's Coffee House, has sold for $3,940,000. At 18,038 square feet, the sale price works out to about $218 per-square-foot. Southgate Village LLC was the seller, and Campus View II LLC was the purchaser. The sale, which closed on March 25, was brokered by Ty Gose, Dave Treppendahl, and Dean Bryson, all with NAI/Latter & Blum Commercial Real Estate. Campus View II is a J.B. Levert Land Company subsidiary. According to Gose, this was an excellent deal for the purchaser, who has previously acquired two other retail properties on Nicholson Drive from Southgate Village. "The rental rates supported the sale price," Gose says. "That coupled with the fact that the location can't be beat, prompted the purchaser to make the investment."
The LSU Board of Supervisors last month approved a ground lease for a new LSU Foundation headquarters at the corner of Nicholson and Skip Bertman drives on the south edge of what is planned as the Nicholson Gateway mixed-use development. However, the size and tenant makeup of the building—which the LSU board also would have to approve—have not yet been determined. For now the foundation expects to occupy about 20,000 square feet, plus additional space for meetings and events, foundation spokeswoman Sara Crow says. A retail presence is also possible, she adds. The location near the heart of campus, and its proximity to the experience of game days for football, will be a "wonderful move forward" for the foundation, Crow says. "That's going to be an advantage for us, to be able to raise more money for LSU," she says. "The more...
While little has been heard publicly in recent years about River District, the planned mixed-use development along the Nicholson Drive corridor, Dalis Waguespack of Moreno Properties says prominent architect Steve Oubre is in the process of finalizing the master plan. "We had to take a break," because of the recession, she says. "Things are coming back together. Lending is available. The housing market is turning around. We're getting excited again over it. We never lost the enthusiasm for the project." Waguespack didn't want to discuss the still-evolving details about the development on 45 acres near Magnolia Mound Plantation, although media reports dating back to 2008 and 2010 describe a "smart-growth, new urbanist community" with multifamily residences, retail and office space. Waguespack says other projects along the corridor, such as the redevelopment of the former Prince Murat site, are good for River District. "Our studies are strong, and we're excited to have Steve doing it,"...
The key to downtown development is getting people to live there. But that has proven difficult for a couple of reasons, not the least of which is a shortage of competitively priced apartments and condos.
A deal to sell the historic Richoux Building at 302 N. Third St. downtown has closed for $1.2 million. The building—well-known for its neon Coca-Cola sign—was purchased by local businessman Mike Crouch on Thursday from attorney Danny McGlynn, who acquired the midcentury building in 2005 and tried unsuccessfully to redevelop it. As reported by Daily Report, Crouch is negotiating with Raising Cane's, which is interested in opening its first downtown restaurant in the building's 8,000-square-foot ground-floor space. Raising Cane's founder and CEO Todd Graves confirms the company is looking at the space and is committed to opening a downtown location. Crouch also previously told...
A pair of separate reports out this morning shows spending on U.S. construction projects rebounded in February to the highest level in more than four years, while U.S. manufacturing activity expanded more slowly in March than February. Construction spending rose 1.2% overall in February compared to January, when construction had dropped 2.1%, the Commerce Department reports. Spending rose to a seasonally adjusted annual rate of $885.1 billion, which was 7.9% higher than a year ago. The advance was led by a 2.2% rise in private residential construction, which climbed to an annual rate of $303.4 billion—the best showing since November 2008. Private nonresidential construction was up 0.4% while public construction rose 0.9%. Construction spending is expected to keep growing this year, fueled by more homebuilding and broader improvement in the economy. The Associated Press has more details on that report
EBR building permits rise in April
At 1,913, the number of building permits issued in East Baton Rouge Parish in April was up 13% over the 1,686 issued during the same month last year, according to a new report from the city-parish Department of Public Works. Perhaps even more important, the valuation of projects permitted was up 65% on the month—approximately $69.9 million, up from $42.4 million. A total of 65 permits for commercial projects, including five stores and six apartment projects, were issued during April. That's up from 46 commercial permits in April last year. Residential permitting, however, was down slightly in April. Of the 137 permits issued, 60 were for single-family residences and 77 were for additions. There were 142 residential permits issued last April. Four months into 2013, total permitting is down from last year, as is the valuation of projects permitted. The 7,083 permits issued this year are 2% fewer than the 7,227 issued through April last year. Valuation is off 5.6%: $199.7 million...
RDA committee recommends loan approval for Government Street 'model block' project
A $700,000 gap loan for Danny McGlynn to renovate the Darensbourg building on Government Street, as well as upgrade several neighboring buildings on the 2900 block of the Mid City street, will be taken up by the East Baton Rouge Redevelopment Authority board on June 11. An RDA loan review committee today gave McGlynn's plans a favorable review and is recommending the RDA give final approval to the low-interest loan for the project. "It's a loan that will make the project work, and now we just need the full board approval and we're off to the races," says McGlynn, who is calling the project a "model block" project for future Government Street redevelopment. The plan, as Daily Report first reported in September, calls for Ritter Maher to move its headquarters from Bluebonnet Boulevard to the currently dilapidated and vacant Darensbourg building. It also calls for a face-lift...
'Real Estate Weekly': New fundraising effort for Lincoln Theater restoration begins
Those behind a years-long effort to bring the Lincoln Theater in Old South Baton Rouge back to its former glory are gearing up for a new run at raising enough private funds to finally restore the historic theater—with a long-term goal of expanding the property to make room for the Louisiana Black History Hall of Fame Museum. A "Restore the Lincoln" fundraising campaign kickoff reception is being held Friday by the black history hall of fame and Foundation for Historical Louisiana. Attendees of the event will be shown plans for the first two phases of the restoration and asked to lend their support—and more important, their money. The first phase includes readying the property for a full renovation and making it environmentally safe, which means removing lead piping and paint, asbestos and mold. The second phase would restore the theater, which was built in 1950 and served as the premiere entertainment venue in Old South Baton Rouge. "This would bring the Lincoln Theater...
La. posts third-highest construction job growth last month
With 10,200 more people working in the construction industry in April than were during April 2012—an increase of 8.1%—Louisiana's sector job growth was the third-best in the nation, according to the latest monthly jobs report from the Associated General Contractors of America. Alaska was No. 2 for job growth by percentage on the year, at 9.1%, while Hawaii led the nation with 11.5% year-over-year growth. The 135,600 construction workers in Louisiana in April represented a 0.4% increase, or 600 more jobs, from the month previous. Construction sector employment has now grown in Louisiana every month so far this year. It is one of just 29 states in the country that saw year-over-year growth in April, while 32 states and the District of Columbia posted job losses. Louisiana is also among just 17 states that had construction job growth between March and April. You can find the complete April jobs report from AGCA
Construction on Harveston expected to begin in coming weeks
Builders received permits Monday from the city-parish to begin construction on homes in The Preserve at Harveston—the 95-acre, first phase of Mike Wampold and John Fetzer's planned 1,200-acre mixed-use development straddling the Bluebonnet Extension. Construction on the homes, which will be priced in the low-to-mid $300,000 range for smaller homes and close to $400,000 for larger properties, is scheduled to begin in the next two weeks. Five local builders have been selected for the project: Colby Constructors, Distinctive Homes by Watson, Dupree Construction, Fetzer Properties of Louisiana, and Unified Construction Group. Each builder will begin with three model homes, and will be required to follow strict design guidelines that detail the coastal/Creole/West Indies-architectural style that will characterize the development. Some 350 homes are planned for The Preserve, 93 of which will be constructed on a 33-acre tract that will be the first part of the first phase. Permits...
Andrews: Big changes coming to HUD
HUD offices across the nation will be closed Friday as part of a program to reduce costs through unpaid furloughs. The closure means the offices will be shuttered for four days through the Memorial Day weekend, so anyone with time critical issues should plan accordingly. But the biggest news from HUD on cost savings is the consolidation of several offices into regional hubs, and Louisiana is significantly impacted by these plans. First, the multifamily production activities currently being performed from the New Orleans field office will be consolidated into the existing Fort Worth hub in Texas, representing one of five regions being established in this new plan. According to statements on HUD's website, "this simplified structure will increase national consistency across Multifamily." In addition, they also expect "that the more streamlined field management structure will streamline decision-making and enhance accountability." HUD addresses potential fears that a Fort Worth office...
Capital Region home sales 16% higher than last year through April
Bolstered by a strong April, in which home sales in the eight-parish Capital Region were up 28%, 2013 sales are now 16% higher than they were through April a year ago. That's according to the latest monthly sales report from the Greater Baton Rouge Association of Realtors. A total of 2,545 sales have closed through April this year, compared to 2,193 in the first four months of last year. In addition, the region's average sales price in April, at $208,153, was also 12% higher than the $186,352 average price recorded in April 2012. The number of homes on the market during April, 3,938, was down 14% compared to last April, when 4,592 homes were for sale in the region. "The prickliest thorns in our collective side are still lack of inventory and subdued listing activity," reads the GBRAR April report. "In some neighborhoods, consumers have 50 or 60 percent fewer options from which to choose than they did a few years ago. That's causing bidding wars in popular areas." In East Baton Rouge...
Real estate recap: Rouzan viable with or without a library, representatives say … MAPP, architects in settlement talks over Baton Rouge High … Marriott Residence Inn to get new look
In or out: If the East Baton Rouge Library Board of Control does, in fact, decide to pull the plug on the long-planned Rouzan library and relocate the branch elsewhere—as board members indicated last week that they may well do—the traditional neighborhood development is still viable. So says the lender on the project, businessman John Engquist, who acquired the mortgage on Rouzan from BancorpSouth last year. "That is a very viable, vibrant development with or without a library," says Engquist. "Would I rather have the library? Absolutely. But I would not say 'oh, no!' if it fell apart." Daily Report has the full story here.
Cook: River Road industrial site sells
Hercules Trucking, doing business as Hercules Tec, has purchased a 43.9-acre tract on River Road, just downriver from Bear Industries in Iberville Parish. The sale closed on May 13 for $824,500, or about $18,780 per acre. The property, which includes 4.2 acres of batture with 308 feet of frontage on the Mississippi River, is an assemblage of two tracts. Trey Williams with NAI/Latter & Blum Realtors represented the purchaser in the transaction. The sellers, James Ralph Babin, Jerline Babin Hebert, Rita Delores Babin LeBlanc and Carol Ann Babin Landaiche, were not represented with an agent. Hercules' primary business is transporting propane and natural gas. The property will be used to develop a new facility, which will become the company's main office in the Baton Rouge metro area.
(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
New fundraising effort for Lincoln Theater restoration begins
Those behind a years-long effort to bring the Lincoln Theater in Old South Baton Rouge back to its former glory are gearing up for a new run at raising enough private funds to finally restore the historic theater—with a long-term goal of expanding the property to make room for the Louisiana Black History Hall of Fame Museum.
New fundraising effort for Lincoln Theater restoration begins
Those behind a years-long effort to bring the Lincoln Theater in Old South Baton Rouge back to its former glory are gearing up for a new run at raising enough private funds to finally restore the historic theater—with a long-term goal of expanding the property to make room for the Louisiana Black History Hall of Fame Museum. A "Restore the Lincoln" fundraising campaign kickoff reception is being held Friday by the black history hall of fame and Foundation for Historical Louisiana. Attendees of the event will be shown plans for the first two phases of the restoration and asked to lend their support—and more important, their money. The first phase includes readying the property for a full renovation and making it environmentally safe, which means removing lead piping and paint, asbestos and mold. The second phase would restore the theater, which was built in 1950 and served as the premiere entertainment venue in Old South Baton Rouge. "This would bring the Lincoln Theater...
Galvez Plaza stage sculpture completion delayed again
Completion of the Galvez Plaza sculpture and stage cover has been delayed yet again, this time due to filming in the area. The nearly $1 million, stainless steel sculpture and stage cover at North Boulevard Town Square is now slated to be finished in June, rather than in late May as officials had previously hoped. It has been in the process of being built for months, and workers were recently forced to stop working on it while the Bonnie and Clyde miniseries and Search Party movie were being shot downtown, says Davis Rhorer, executive director of the Downtown Development District. Work to finish the crest can resume next week, he says. Progress on the project previously came to a halt earlier this year because of an ill-fitting piece of the massive overhead crest. The piece was reordered from fabricators in Kansas City. It arrived in April, and developers thought live performances could commence on the stage this month. Before that delay, they had hoped the project...
Lee High campus a possible option for library if Rouzan falls through
If the long-planned Rouzan branch library falls through, could the campus of the newly rebuilt Lee High School be a fallback location? It's an option the East Baton Rouge Library Board of Control is exploring, and a spokeswoman for the East Baton Rouge Parish School System says Superintendent Bernard Taylor likes the idea. "The [library board] staff reached out to us and I presented the idea to Dr. Taylor and … we are absolutely open to conversations with them," says EBR schools spokeswoman Susan Nelson. "Obviously, we would need to get board approval … but we want Lee High to be a community school and a community center." Preliminary discussions between the staffs of the library board and school system took place a couple of weeks ago—before the library board and Rouzan developer Tommy Spinosa hit the latest impasse in their long-running negotiations over construction of the Rouzan branch library. Though it appeared earlier this week that Spinosa and the board had...
'Real Estate Weekly': Police could be relocated into former Woman's Hospital by year's end
If the Metro Council approves amending this year's capital improvement budget to free up $11 million for the purchase of the former Woman's Hospital campus on Airline Highway, the Baton Rouge Police Department's headquarters could be relocated there by the end of the year, says William Daniel, Mayor Kip Holden's chief administrative officer. While the former hospital building itself is outdated, has no use and will need to be demolished, Daniel says, the Physician's Tower on-site can be renovated with relative ease. "We can move the police in there pretty quickly," he says. The Metro Council will consider the budget amendment at its May 22 meeting, during which a public hearing will also be held on the matter. Daniel says it's important that the Metro Council approve the plan at its next meeting because the purchase agreement the city-parish signed in December for the 24-acre campus expires in early June—before the council would meet again following the May 22 meeting. "We're...
Real estate recap: Library board and Spinosa appear to reach deal on Rouzan … Large, long-stalled development south of LSU 'back on track' … RDA to seek $425,000 from city-parish for Smiley Heights
Paper and ink: After years of delays and negotiations, it appears the East Baton Rouge Parish Library Board of Control and developer Tommy Spinosa have reached an agreement over construction plans for the Rouzan branch library. Board President Travis Woodard tells Daily Report the board and the parish attorney's office expect to sign off on a revised cooperative endeavor agreement with Spinosa before the board's regular monthly meeting, which is Thursday. Read the full story here.
Andrews: A look at Fannie Mae financing for apartments with commercial space
I sometimes get asked about using the popular Fannie Mae permanent loan for an apartment complex featuring commercial space, such as office or retail. As we try to develop more infill or downtown properties that mix commercial uses on the first floor with residential uses on upper floors, I expect the question to come up more frequently. And the good news is that Fannie Mae does allow for such financing, so long as special underwriting approaches are taken. First off, the two income streams need to be underwritten separately, such that residential expenses match up with residential income and commercial accounts also match up. The current Fannie Mae policy requires commercial income to be no more than 20% of the overall effective gross income of the total project, and also stipulates that the commercial income be underwritten at a minimum 10% vacancy. This arrangement is tougher with smaller properties but works fine with a larger property containing a higher ratio of residential to...
Cook: Beauregard property sells, to become law office
A converted residence at 601 St. Charles St., originally known as The Holt House and now included on the National Register of Historic Places, has sold for $193,000. It was purchased by NCP Properties LLC, which is represented by Lexlee Overton Roccaforte and Clay Roccaforte; the seller was Whitney Bank. The converted single-family residence, which contains 2,370 square feet and includes two parking spaces, had been listed for as much as $249,000. The actual sale price works out to $81.44 per square foot. The deal closed on April 22. The property is at the corner of St. Charles and France streets in Beauregard Town. The new owners intend to use the building as an office for their law practice. The seller was represented by Mathew Laborde with Beau Box Commercial Real Estate. The purchaser was represented by Danny Watts at Saurage Rotenberg Commercial Real Estate.
Walmart rejects bids for Supercenter at Bluebonnet
Just two months ago, the long-stalled Walmart Supercenter planned at Bluebonnet Boulevard and Burbank Drive finally seemed ready to get off the ground. Now it appears the 160,000-square-foot store, first announced in 2008, has hit another snag. In March, Daily Report obtained a DataFax construction report stating that the Bentonville, Ark.-corporation had put the project out to bid. According to that report, the estimated cost of construction was $7 million, and three pre-qualified contractors had been invited to bid: Clark Construction of McComb, Miss.; Crossland Construction of Columbus, Kan.; and Ewing Construction Co. of Corpus Christi, Texas. But sources familiar with the project confirm that Walmart rejected all three bids and now plans to put the project back out to bid. It is unclear whether price alone was the sole factor in the decision to rebid or if there were other considerations. It is also unknown whether the latest delay will affect that most recently announced...
Mosely makes second filing for Long Farm
Russell Mosely is looking to open a second filing of his still under-construction Long Farm development. Mosely filed an application for the building permits last week, seeking permission from city-parish regulators to develop 56 lots on the 11-acre second phase of his TND off Barringer Foreman Road. The addition would be called Long Farm Village and could be under construction by late summer, Mosely says. National developer D.R. Horton will build the homes, Mosely says. The Long Farm Village will have a "pocket park" with seating, sidewalks and landscaping. "Just another place for people to go relax," Mosely says. Homes in the second phase will be varied in size and will be built along tree-lined streets. Construction on a clubhouse and a 1,700-square-foot pool are set to begin in the next couple of weeks, he says. "The pool is going to have fountains and it's going to have a tanning ledge; it's going to be nice," Mosely says. Construction on the entryway and sidewalks around a pond...
City-parish hopes to have police relocated into former Woman's Hospital by year's end
If the Metro Council approves amending this year's capital improvement budget to free up $11 million for the purchase of the former Woman's Hospital campus on Airline Highway, the Baton Rouge Police Department's headquarters could be relocated there by the end of the year, says William Daniel, Mayor Kip Holden's chief administrative officer.
City-parish hopes to have police relocated into former Woman's Hospital by year's end
If the Metro Council approves amending this year's capital improvement budget to free up $11 million for the purchase of the former Woman's Hospital campus on Airline Highway, the Baton Rouge Police Department's headquarters could be relocated there by the end of the year, says William Daniel, Mayor Kip Holden's chief administrative officer. While the former hospital building itself is outdated, has no use and will need to be demolished, Daniel says, the Physician's Tower on-site can be renovated with relative ease. "We can move the police in there pretty quickly," he says. The Metro Council will consider the budget amendment at its May 22 meeting, during which a public hearing will also be held on the matter. Daniel says it's important that the Metro Council approve the plan at its next meeting because the purchase agreement the city-parish signed in December for the 24-acre campus expires in early June—before the council would meet again following the May 22 meeting. "We're...
A cautious comeback
The days of “if you build it, they will come” are pretty much over.
Building jobs
The Baton Rouge METRO area continued its strong start to the year in March in the construction employment sector. According to the latest metro jobs report from the Associated General Contractors of America, Baton Rouge had 5,900 more people employed in the industry in March—an estimated 46,000 total—than it did during the month a year previous.
RDA to seek $425,000 from city-parish for Smiley Heights
The East Baton Rouge Redevelopment Authority is asking Mayor Kip Holden for $425,000 to begin clearing land and doing site preparation work on the 40-acre, first phase of Smiley Heights, a 200-acre mixed-use development in Mid City that the RDA is developing. The funding request will be contained in the mayor's midyear, supplemental budget, which is currently being compiled by the administration and will likely be presented to the Metro Council either later this month or in early June. RDA President and CEO Walter Monsour says the first phase of Smiley Heights—which has been described as "an urban traditional neighborhood development"—will include a new Baton Rouge Community College campus with an automotive training facility as well as a Career Academy for EBR Schools. "This initial funding will be to clear and grub and start preparing the site," Monsour says. "We will also be doing some master planning as well as a housing survey so we can determine what type of housing...
Large, long-stalled development south of LSU 'back on track'
A Metairie-based developer is hoping to move forward with a 600-acre, environmentally friendly, mixed-use development on River Road south of LSU. Charles Lambert, the property owner and developer, is awaiting approval from regulators to start clearing the site for the Village at Riverwood, which could ultimately include 1,550 homes. Lambert says he hopes to start developing the property, which he purchased in 1992, by early next year. About 130 acres between Elbow Bayou and River Road would be developed as part of the first phase, including residential lots and some commercial space. In addition to full-size homes, the draft plan filed with the Planning Commission also details more compact town and garden homes. Lambert says the project has been on hold for at least five years as market conditions slumped. But, he says, the Baton Rouge economy looks strong and "we're back on track." Plans call for a pedestrian-friendly urban village with 200,000 square feet of retail space and 18,000...
Library board and Spinosa reach deal on Rouzan
After years of delays and negotiations, it appears the East Baton Rouge Parish Library Board of Control and developer Tommy Spinosa have reached an agreement over construction plans for the Rouzan branch library. Board President Travis Woodard tells Daily Report the board and the parish attorney's office expect to sign off on a revised cooperative endeavor agreement with Spinosa before the board's regular monthly meeting, which is Thursday. Under the terms of the agreement—which is an amended version of a document first signed in 2010—Spinosa will agree to complete by November all the infrastructure work that's needed to begin construction of the library. The infrastructure work includes constructing roads, parking lots and utilities within the area of the TND on which the library will be situated, as well as turn lanes and signal modifications on Perkins Road. Previously, Spinosa had agreed to post a performance bond, but the parish attorney's office did not think...
City Park, sans golf course?
Edging closer to 1,000 signatures, an online petition is bringing the debate about City Park's golf course back into the limelight. Should the 9-hole course be maintained and City Park grow around it, or should it be eliminated and the grounds added to the park's existing green space?
Wampold plans to tear down, rebuild Stanford Avenue apartments
Developer Mike Wampold has filed for site plan approval to tear down One Lakeshore Place apartments on Stanford Avenue and build a new, upscale 240-unit apartment complex called Lakeshore Place on Stanford, says Ryan Holcomb, Planning Commission planning project coordinator. The aging apartment complex, built in 1963 on a roughly 5.5-acre site, is located next to the Crescent at University Lakes condos—also developed by Wampold—across the street from the LSU lakes. Because Wampold plans to build more than 100 residential units on the site, Holcomb says, he is required to get site plan approval for the project. Wampold's new plan is slated to go before the Planning Commission on June 17. Approval from the Metro Council is not required for the site plan, nor does Wampold need any permission to demolish One Lakeshore Place. —Steve Sanoski
Judge rips BancorpSouth in ruling
For nearly three years, BancorpSouth "willfully refused to comply" with discovery requests made by developer Windy Gladney in his protracted court battle with the bank over $2 million in construction loans. So says 19th Judicial District Judge William Morvant, who delivered a major blow to BancorpSouth's case late Tuesday, when he threw out the bank's claim against Gladney and also dismissed its defense to allegations contained in a countersuit he filed against the bank. "The Court has lost confidence in the ability of [Gladney] to properly defend this matter based on the number and the extent of discovery abuses by the plaintiff … and when I say 'plaintiff' I mean the bank," Morvant says in a written transcript of his ruling, obtained by Daily Report. "The record in this case … is replete with instances that go beyond simple inadvertence or negligence. There are too many to write this off as a simple oversight or a slip up on the part of the bank." Gladney's...
Mallard Trails developer sues city-parish
Developer George Robinson is suing the city-parish and the East Baton Rouge Parish Planning Commission for denying preliminary approval of his planned subdivision, Mallard Trails, off Hoo Shoo Too Road. In a suit filed Tuesday, Robinson argues the Planning Commission acted arbitrarily and capriciously, and abused its discretion, when it denied his request last month to put 90 single-family lots on 57 acres on the south side of Hoo Shoo Too Road, east of Wood Duck Drive. Residents of the area largely opposed the planned subdivision, citing fears of increased traffic, road safety and drainage problems. Robinson's suit says that public opinion should not have factored into the Planning Commission's decision at this stage of the preliminary approval process. In contrast to, say, a requested zoning change, the suit argues that the preliminary approval process for a subdivision should not be influenced by public opinion, provided the applicant has complied with the city-parish Unified...
Judge throws out BancorpSouth claims against Gladney
Developer Windy Gladney won a significant victory late Tuesday in his long-running legal dispute with BancorpSouth, when 19th Judicial District Court Judge William Morvant dismissed the bank's $2 million claim against Gladney and his partnership, Kleinpeter-Trace. In his ruling, Morvant also threw out BancorpSouth's defense to claims filed against it by Gladney in a countersuit. Morvant issued his ruling from the bench after a lengthy hearing over the production of bank records, emails and documents that Gladney's attorneys have been trying unsuccessfully for months to obtain from the bank. In a late December ruling, Morvant warned BancorpSouth was facing sanctions for failing to turn over the documents, but said the bank was entitled to an evidentiary hearing on the matter. That hearing was Tuesday. "We were very pleased with the outcome because the discovery in this case has been nothing but a struggle since the suit was filed," says Gladney's attorney Mary Olive Pierson. "You...
Judge sets new date for sale of Perkins Rowe
June 19 is the new date scheduled for the foreclosure sale of Perkins Rowe. A U.S. district judge this afternoon granted KeyBank National Association's request to postpone the auction, which was supposed to be held Wednesday. But sources familiar with the 3.5-year-old court battle between the Ohio lender and developer Tommy Spinosa say the June sale may also be postponed, as were previously scheduled foreclosure sales set for dates in March and May. That's because the bank keeps putting them off, which suggests the bank is trying to negotiate a deal with Spinosa. Why Spinosa would want the property is a no-brainer. If he can find investors willing to partner with him on the project—and sources say he has found them—he gets back a mixed-use development that has proven to be a financially viable and popular retail destination, while also getting out from under the more than $200 million he owes KeyBank and several smaller banks. Why KeyBank—which has fought Spinosa...
'Real Estate Weekly': Bluffs Golf Resort getting its game back
Owners of the Bluffs Golf Resort in St. Francisville have been quietly working to bring the once-troubled country club back to life. So far, the efforts appear to be paying off. Businessman Clyde DuBois, who joined Claude Penn as managing partner in January, helped guide the resort's cash flow from red to black within two weeks of taking over the club's management. Under his stewardship, new home construction, golfing and two restaurants on the resort grounds are booming, DuBois says. Play at the Arnold Palmer-designed golf course has increased by 30%, and membership is up almost as much since DuBois "reversed the nine," or reversed the direction of play of the first 10 holes, in April. The public 18-hole course is getting top rankings in national golf publications; and for the first time, later this month, it will host a U.S. Open qualifying event. That's a big turnaround for a course that was temporarily closed by an insolvent owner in 2009. —April Castro...
Real estate recap: Gambino's moving into Panache Plaza … Ruffino's buys Cochon Lafayette for $3.3 million … Katrina hero undertaking residential development in B.R.
In the oven: Gambino's Bakery plans to move from its Essen Lane location to Panache Plaza at 8342 Perkins Road, between Essen and Bluebonnet Boulevard, by the end of the summer, says manager Paul Scelfo. The new 2,100-square-foot space will be "more suitable to our customers' wishes, as well as our needs," he says. That means a bigger retail area and a smaller kitchen. "The location we're in now is equipped for a lot more than what we do," Scelfo says. The New Orleans-based bakery has been in the Essen Lane location for almost three years.
Andrews: What Buffett's bearish bond forecast may mean for lending
Warren Buffett, the CEO and chairman of Berkshire Hathaway—in addition to being a really rich guy who got that way by being right about business investments most of the time—says in a recent CNBC interview that bonds are a "terrible investment" right now. His rationale for this position is pretty simple and time-tested: You buy things when they're priced low and sell when they increase in value. And at the moment, he says, bonds don't seem to have much upside potential. Buffett's thought is that bonds are already high right now because of the Federal Reserve's policy of buying up $85 billion in bonds each and every month, and that when the Fed stops buying, the prices should drop. How does this impact those of us who deal in real estate rather than bonds? If Buffett is correct, and remember that he has a pretty impressive track record, bond prices will fall and yields on bonds will increase. Since we get our pricing for permanent commercial real estate loans based on bond...
Cook: Gulf Coast Research sells Perkins Road office
The Gulf Coast Research building at 7049 Perkins Road, situated next door to Spectrum Fitness Center, has sold for $780,000. The buyer was DB LeBlanc Properties. Ty Gose with NAI/Latter & Blum represented both the purchaser and seller, Gulf Coast Research, in the deal, which closed April 25. The building contains about 12,000 square feet, so the sale price calculates to roughly $65 per square foot. This is a free-standing office facility with 40 parking spaces. The purchaser bought it as a speculative investment and has made the building available for lease.
(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
Broussard Paper purchases lot to build warehouse, distribution center
Gonzales-based Broussard Paper is building a warehouse and distribution center on a 6.75-acre lot in the Sherwood Common Office Park. Broussard closed on the lot last week for $2.05 million and plans to complete the new warehouse by April 2014. The 45,000-square-foot warehouse and 7,500 square feet of office, showroom and training space will allow Broussard to consolidate two current locations—one in Gonzales and another on Choctaw Drive—into one, says Chuck Edwards, company president. The project is still in the design phase but will likely have a price tag of about $3.5 million, Edwards says. Broussard, which has been in operation since 1987, sells paper as well as janitorial, industrial and food service supplies. Broussard bought the property from Property Services Inc. —April Castro
Baton Rouge posts 15% increase in construction jobs in March
The Baton Rouge metro area continued its strong start to the year in March in the construction employment sector. According to the latest metro jobs report from the Associated General Contractors of America, Baton Rouge had 5,900 more people employed in the industry in March—an estimated 46,000 total—than it did during the month a year previous. The 15% year-over-year increase made Baton Rouge the 11th-best-performing metro of the 339 tracked by AGCA. It follows a No. 13 ranking in February, when 45,300 people reportedly held construction jobs in the area, and a No. 11 ranking in January, when total construction employment was at 43,200. The Baton Rouge area also had a strong finish to last year, with a No. 8 ranking in the December jobs report and a No. 11 ranking in November. AGCA reports Baton Rouge is among 152 metros to see construction jobs increase in March, while 126 posted a decline and 61 saw stagnant employment levels. The March jobs report highlights "the...
Bluffs Golf Resort getting its game back
Owners of the Bluffs Golf Resort in St. Francisville have been quietly working to bring the once-troubled country club back to life. So far, the efforts appear to be paying off. Businessman Clyde DuBois, who joined Claude Penn as managing partner in January, helped guide the resort's cash flow from red to black within two weeks of taking over the club's management. Under his stewardship, new home construction, golfing and two restaurants on the resort grounds are booming, DuBois says. Play at the Arnold Palmer-designed golf course has increased by 30% and membership is up almost as much since DuBois "reversed the nine," or reversed the direction of play of the first 10 holes, in April. The public 18-hole course is getting top rankings in national golf publications; and for the first time, later this month, it will host a U.S. Open qualifying event. That's a big turnaround for a course that was temporarily closed by an insolvent owner in 2009. Interest from potential homebuyers has...
News alert: Perkins Rowe sale to be postponed
For the second time this year, a scheduled foreclosure sale of Perkins Rowe will be postponed. Daily Report has learned that KeyBank National Associates, the Ohio lender that is owed more than $200 million on the project by developer Tommy Spinosa, plans to file documents Tuesday in U.S. District Court asking that the sale, scheduled for Wednesday, be postponed. Neither officials with KeyBank nor Spinosa will comment. The move suggests, however, that a deal involving Spinosa, could be in the works. The mixed-use development was originally scheduled to be auctioned in late March, but the bank asked the U.S. Marshal at that time to put off the sale until May 8. No explanation was given then, either. —Stephanie Riegel
Wine Walk on Rosemont Friday
Take a leisurely stroll and sample delicious fare Friday during the "Wine Walk on Rosemont" to benefit the Webb Park Playground Renovation Campaign. The group is hosting its second wine walk down Rosemont Drive to raise funds for park restoration, and the event is open to all neighbors, friends and supporters. Homeowners will open their doors for three stops, serving a variety of wine and hors d'oeuvres. Tickets can be purchased in advance or at the event. Click here for more information.
From 225: Making Groceries
On a Thursday morning, Raymond Cutrer's booth at the Red Stick Farmers Market has a line five customers deep. Cutrer's Meat Market has quite the selection: homemade salami, ground beef, soup bones, premium steaks and smoked sausage made with a 100-year-old family recipe.
RDA investigating funding sources
The East Baton Rouge Redevelopment Authority received a $60 million federal New Market Tax Credit allocation in 2009, which went toward two YMCAs; a Hampton Inn & Suites; the Emerge Center for Communication, Behavior & Development; and a green technologies project at the Honeywell plant in north Baton Rouge. The RDA didn't get any New Market credits in the most recent round of allocations announced last week, but that doesn't mean they're slowing down, says President/CEO Walter Monsour. He says RDA staffers are going through the list of possible projects and reaching out to other community development entities in other parts of the country, some of which have a national mission, to see if those entities might be interested in deploying their credits in East Baton Rouge Parish. On the Honeywell project, two other CDEs partnered with the RDA, he explains. The RDA also plans to seek a...
'Real Estate Weekly': Studio head rooting for Costco deal to close
Costco is interested in the former site of a Coca-Cola bottling facility off Airline Highway, and East Baton Rouge Parish officials are pushing for a tax increment financing district to help close the deal. Patrick Mulhearn, who directs studio operations for Raleigh Studios Baton Rouge at the nearby Celtic Media Centre, is among those hoping the deal goes through. He says Celtic already is leasing a building on the site, and Celtic tenant Pixomondo is moving in. "We have gone ahead and renovated it, with the understanding that we're going to be able to acquire it," Mulhearn says. The problem is that Celtic only is interested in about six or seven acres of land, but Coca-Cola wants to sell the approximately 26-acre tract all at once. If Costco buys the land, Mulhearn says, then Celtic could buy what it wants from Costco. Celtic may build a mill shop on the new property, where sets could be constructed and decorated. Universal Pictures has booked space at Raleigh for a possible...
Real estate recap: Downtown Grocery begins filling food void downtown … Former department of insurance site may go to legislative auditor … Baton Rouge's definition of 'family' in UDC ruled unconstitutional
It fills you up: Toothbrushes, bread and wine have been the hot sellers at Baton Rouge's first downtown grocery store since it held a soft opening Thursday with little fanfare. While not a full-service grocery store, Downtown Grocery, at the corner of Third and Florida streets, is the closest thing to it downtown. As evidence of that, the small grocer had completely run out of bread by Saturday. A grand opening and ribbon cutting is slated to take place Monday. Read the full story from Daily Report here.
Andrews: The perils of assuming debt
I've received some questions, following my recent column on prepaying permanent debt, in which readers want to know if a purchaser can simply assume the debt, thus avoiding a potentially large prepayment penalty. The answer is that in most situations a purchaser can assume the debt after paying a 1% fee and going through the approval process, but they might not want to do so if it negatively impacts their return. Assume that you bought a property with $80,000 in net income for $1 million, at about an 8% cap rate, and you borrowed $750,000 from a permanent lender who charged you 5% interest. You put up 25% of your own money and pocket about $31,700 per year after debt service, for a cash-on-cash return of about 12.7%. Through hard work and some luck, you quickly increase the net income to $88,000 and decide to sell the property at the same 8% cap rate for $1.1 million, with the purchaser assuming your $750,000 debt (there would not have been much amortization in the first few years of...
Cook: Retail showroom on Jefferson sells
Chaseland Properties LLC, represented by Donald and Wanda Chase, has purchased a retail showroom building for $650,000 from ENFP LLC, represented by June Jackson and Stacey Davis. Located on Jefferson Highway just east of Highland Road, near Round Oak Subdivision, the facility encompasses approximately 6,570 square feet. According to listing agent Steve Legendre of Beau Box Commercial Real Estate, the property is in excellent condition. The building, which is about three years old and includes a retail showroom area as well as an air-conditioned warehouse space, had been listed for as much as $695,000. The deal closed on April 23. The building is separated into two suites, with one being owner occupied and the other leased. The property also includes a Lamar Advertising sign that helps offset rents on the property. The selling agent was Brent Struthers with Beau Box Commercial Real Estate. The new owner intends to lease the property and hold it as an investment.
Mortgage interest deduction at risk, says housing expert
With tax reform a hot topic on Capitol Hill these days, real estate expert Nicolas Retsinas says eliminating the mortgage interest deduction would not have the devastating effect that many in his industry say it would. "The mortgage interest deduction is a sacred cow, but I think that in an era when everybody is trying to look at the budget, there is some question as to whether the wealthy should continue to have a bite of that cow," says Retsinas, a former Federal Housing Commissioner and director emeritus of Harvard University's Joint Center for Housing Studies. Speaking to Forbes about the U.S. housing market recovery in general, Retsinas says the mortgage interest deduction is "is understandably at risk today" because it reduces the amount of money available to the federal government by about $100 billion a year. Realtors, homebuilders and many others in the industry typically argue that eliminating it would discourage home sales and undermine home values over time. But...
Capital Region foreclosure rate falls in February
The rate of Capital Region homes in foreclosure fell in February compared to both January and the same month last year. According to a new report from CoreLogic, the percentage of Baton Rouge-area homes in foreclosure stood at 2.1% in February, down from 2.16% the month previous and 2.46% in February 2012. "Foreclosure activity in Baton Rouge was lower than the national foreclosure rate, which was 2.85% for February 2013," notes CoreLogic. The local rate was also below the state rate of 2.22% in February. The Capital Region's mortgage delinquency rate—or the percentage of home loans three months or more past due—also posted a decrease on the month. At 5.18% in February, it was down from 5.36% in January and 5.61% during the same month last year. The local foreclosure rate in February was only slightly higher than the 2.09% rate Baton Rouge posted in November, which was the lowest rate in nearly three years. The last time the local foreclosure rate was below 2% was...
Studio head rooting for Costco deal to close
Costco is interested in the former site of a Coca-Cola bottling facility off Airline Highway, and East Baton Rouge Parish officials are pushing for a tax incremental financing district to help close the deal. Patrick Mulhearn, who directs studio operations for Raleigh Studios Baton Rouge at the nearby Celtic Media Centre, is among those hoping the deal goes through. He says Celtic already is leasing a building on the site, and Celtic tenant Pixomondo is moving in. "We have gone ahead and renovated it, with the understanding that we're going to be able to acquire it," Mulhearn says. The problem is that Celtic only is interested in about six or seven acres of land, but Coca-Cola wants to sell the approximately 26-acre tract all at once. If Costco buys the land, Mulhearn says, then Celtic could buy what it wants from Costco. Celtic may build a mill shop on the new property, where sets could be constructed and decorated. Universal Pictures has booked space at Raleigh for a possible...
Cap not welcome
A provision of the federal immigration reform bill by the so-called Gang of Eight senators that would cap the number of available guest worker visas for construction jobs could further worsen the worker shortage the industry already faces in the Capital Region and across Louisiana, says Ken Naquin, CEO of the Louisiana Associated General Contractors.
'Real Estate Weekly': Office market getting back in balance
For the past few years, tenants have had the upper hand in the Baton Rouge office market. Starting in 2009—and especially in 2010 and 2011—owners were cutting their rates to attract customers, says Branon Pesnell of Beau Box Commercial Real Estate. But while there still are some tenants and buyers who think they can "beat up" on renters and sellers, he says, overall, the market has stabilized. "We've kind of reached that intersection of optimism and pessimism," Pesnell says. "It's really become more of an equal market for both sides." Engineering and construction firms, which were hit hard by the recession, are making a comeback because cheap natural gas is spurring more work at the region's chemical plants. Most brokers are reporting higher deal volume and less foot-dragging by decision makers. There has even been some interest in new construction of garden offices along Bluebonnet Boulevard and Jefferson Highway. Office occupancy increased from about 83% last year to...
New office, retail development going up on Jefferson
A roughly 8,000-square-foot commercial building to be anchored by a physician's office is going up at the intersection of Jefferson Highway and Rue De Belle Maison, near Bluebonnet Boulevard. "There's going to be about six bays there, and [the owner's] looking for retail" to fill the remainder of the development, says Michael Johnson of Acadiana Constructors, the general contractor on the project. "It's being done in two phases, and we're on the first phase now, so there's the possibility of extending that building." Johnson says he's not at liberty to disclose the name of the physician who is behind the development. He does say it's a speculative project, however, and that there are no other tenants lined up as yet. Charlie Colvin of Beau Box Commercial Real Estate, who is representing the development, did not return calls for further comment. The building has been framed in recent weeks and should be completed soon, Johnson says. "It should be stuccoed in the next week, and then...
Real estate recap: High-end restaurant coming to Central … Details on River Park coming, consultant says … Neighbors voice traffic concerns at meeting on Costco
Something's cooking: Wayne Stabiler, the man behind The Little Village and Le Creolé restaurants, is almost ready to open his next venture: Stab's Steak and Seafood. The high-end restaurant, focusing more on steaks than seafood, should be ready to open by June in the traditional neighborhood development in Central called The Village at Magnolia Square, he says. Daily Report has more details here.
Andrews: How holding period affects your debt decision
Last week we looked at scenarios in which it's more appropriate to use bank debt than permanent debt, concluding that permanent debt works better if your project is stabilized and bank debt works better if there is repositioning or further stabilizing to be done. This week we look at another decision point: holding period. Most permanent loans are set to mature in 10 years, which is great if you want to lock in a low interest rate for an extended period. But the picture gets cloudy if you want to sell the property within that 10-year period. Unlike residential loans, which can be prepaid without a prepayment penalty, commercial real estate loans done in the permanent market have prepayment penalties—and they can be substantial. If you decide to sell the property before the 10-year maturity date and your purchaser does not want to assume your loan, you have...
What's wrong with this Highland Road restaurant site?
In a community that prides itself on food and has no shortage of dining establishments—about one for every 150 residents, no less—you might think a shopping center on Highland Road with 4,050 square feet of ready-to-use restaurant space would be in demand. But for more than 18 months, the former Monjunis restaurant site in the Kenilworth Shopping Center has remained vacant. The restaurant closed unceremoniously in the fall of 2011, and leasing agent Chris Gremillion of NAI/Latter & Blum has yet to find another tenant, even though furniture, fixtures and culinary equipment have remained in place and ready for use. "It's a unique opportunity because it's a fully equipped restaurant that's ready to go," Gremillion says. "It's a turn-key kind of situation." But while a few local restaurants have expressed interest, there have not been any meaningful offers for the site, which is priced at $15.75 per square foot, or around $5,300 per month, not including common area...
University Club opens two new filings
Two new filings at the University Club Plantation are in the works for a summer opening. The 18-hole golf course community plans to open 70 lots in two subdivisions—Tiger Crossing and Lake Crest—ranging from $75,000 to $137,000 per lot. Seventeen lots already are under contract, including 12 for custom homes and five from speculative builders, says developer Sinclair Kouns. The University Club hasn't opened a new filing since 2008, but Kouns says interest in new home construction has skyrocketed this spring. "It's been a slow four or five years," Kouns says. "But the last two months have been overwhelming. The response and the inquiries we've had in this price range, not only from builders, but from individuals as well … have increased tenfold." Kouns is targeting homes in the $400,000 to $650,000 range, a price range where he says inventory is lacking for prospective homebuyers. Kouns says the filings will open in the next 30 days or as soon as road construction...
Office market getting back in balance
For the past few years, tenants have had the upper hand in the Baton Rouge office market. Starting in 2009—and especially in 2010 and 2011—owners were cutting their rates to attract customers, says Branon Pesnell of Beau Box Commercial Real Estate. But while there still are some tenants and buyers who think they can "beat up" on renters and sellers, he says, overall, the market has stabilized. "We've kind of reached that intersection of optimism and pessimism," Pesnell says. "It's really become more of an equal market for both sides." Engineering and construction firms, which were hit hard by the recession, are making a comeback because cheap natural gas is spurring more work at the region's chemical plants. Most brokers are reporting higher deal volume and less foot-dragging by decision makers. There has even been some interest in new construction of garden offices along Bluebonnet Boulevard and Jefferson Highway. Office occupancy increased from about 83% last year to...
Commission considers Hoo Shoo Too Lakes second filing
DSLD Homes' plan for the second filing of its Hoo Shoo Too Lakes subdivision may hit a snag tonight when it comes before the Planning Commission at its monthly meeting. The homebuilder has filed an application for a Planned Use Development, or PUD, consisting of 41 low-density, single-family homes on a 15-acre site that is adjacent to the first filing of the development. The company is currently in the process of acquiring the property from Dick Brien, who is hoping to sell the back portion of his 22-acre tract, which is sandwiched between the first filing of Hoo Shoo Too Lakes and Mallard Crossing. But as so often happens in local land-use controversies, nearby residents oppose the plan on the grounds that it would bring unwanted traffic and congestion to their neighborhood. They also oppose connecting the new development to their subdivision, an issue that has thwarted other PUDs in recent years. At a neighborhood meeting last week, Metro Councilman Joel Boé's Metro Nine Committee,...
BR Trends: Real estate financing is back
While the pre-recession easy money may be gone for good, financing for real estate pretty much is back to normal, says Brian Andrews, who spoke about finance at today's annual Trends real estate seminar.
BR Trends: Real estate financing is back
While the pre-recession easy money may be gone for good, financing for real estate pretty much is back to normal, says Brian Andrews, who spoke about finance at today's annual Trends real estate seminar. "Financing is available again in our area," he says. "We're kinda-sorta on the road to getting back." Apartments are "the darling of the industry right now," while industrial warehouses, grocery-anchored retail centers, downtown offices, and mobile home parks also are attractive to lenders. Other deals might be considered if you have a "good story" to tell, although owner-occupied and pre-leased projects remain far more appealing than speculative construction. For many banks, caution has given way to business as usual, Andrews says, and conduit lenders are making deals again. The federal government is helping out by keeping the prime interest rate low and continuing to support Fannie Mae, Freddy Mac and HUD, although the feds could change their game plan at some point, Andrews...
Trends data suggests Capital Region real estate strengthening
The Capital Region real estate market is continuing to improve across most sectors. So say industry experts who are speaking this morning to more than 600 real estate professionals at the 25th annual Trends in Real Estate Seminar, which kicked off at 7:30 and runs through noon at the BREC Independence Park Theater. Some highlights coming from the seminars today are:
• In commercial real estate, financing is becoming more readily available for commercial and residential projects from a growing number of sources. Banks, credit unions and thrifts are investing in construction, with both short- and long-term loans.
• In the industrial sector, demand for warehouse space is up. The vacancy rate at the end of 2012 was 11.6%, compared to 14.3% at the end of 2011. The net change in occupied inventory from 2011 to 2012 nearly quadrupled the absorption rate from 2010 to 2011, a positive trend that is expected to continue, thanks to an industrial construction boom.
Library board to take up agreement with Spinosa again today
A spokesman for Tommy Spinosa says the cooperative endeavor agreement the developer has been negotiating with the city-parish over construction of the long-awaited Rouzan branch library is completed in principal, though details are still being finalized. But as of this morning, the head of the Library Board of Control, which meets this afternoon, says he won't be satisfied until the documents are signed and the infrastructure surrounding the facility is under construction. "I am disappointed it has not been resolved yet," board Chairman Travis Woodard tells Daily Report. "I would love to be surprised this afternoon to hear the deal is all done, but that is not my appreciation at this point." After years of delays, the library board finally gave Spinosa—who is donating to the city-parish the property within his development off Perkins Road for the library and is also agreeing to do the surrounding infrastructure work—a February deadline to either post a performance...
Details on River Park coming, consultant says
Developer Pete Clements has tentatively secured the $130 million he needs to begin developing his long-awaited, mixed-use downtown project known as River Park, according to his consultant on the development. Mark Drennen, who has been working with Clements for more than four years, says details of the deal are being finalized and that he expects an announcement in the next couple of weeks. "Actually, I thought an announcement would have been made last month," says Drennen, who declines to discuss the investors or the source of the capital. "It just takes forever when you have all the lawyers involved." Plans for the 50-acre River Park, which would be located north of Hollywood Casino on the riverfront, include an entertainment district, office space, condos and apartments. Clements plans to develop first the entertainment district, which will include hotels, restaurants, bars and music clubs. The establishments will be national chains, not locally owned businesses, Drennen says.
'Real Estate Weekly': Capital Region home sales climb 16% in March
March has been the best month yet this year for home sales in the Capital Region, with approximately 16% more sales recorded than in March 2012, according to the latest report from the Greater Baton Rouge Association of Realtors. A total of 765 homes were sold during the month in the eight-parish region tracked by the GBRAR, which is 107 more than the total for March last year. Sales were up in January and February, but at the more modest pace of 9% and 5%, respectively. The March report also suggests the Capital Region market has turned the corner to a seller's market. Months inventory—or the number of months it would take to sell all homes on the market at the current pace—was at 5.3 in March, down from 6.9 a year earlier. A months inventory reading below 6 months is generally considered to indicate a seller's market. At the end of the first quarter of the year, home sales in the Capital Region—which includes East Baton Rouge, Ascension, Livingston, West Baton...
Galvez Plaza stage sculpture now on track for end of May completion
Downtown officials say delays in completing the Galvez Plaza sculpture and stage cover are nearing an end. Construction on the nearly $1 million, stainless steel sculpture and stage cover at North Boulevard Town Square came to a halt earlier this year because of an ill-fitting piece of the massive overhead crest. The piece was reordered from fabricators in Kansas City and is expected to arrive this week. That should clear the way for completion of and live performances on the downtown stage by the end of May, says DDD Executive Director Davis Rhorer. Officials had hoped the project would be complete in time for the April start of the spring concert season, including last weekend's Blues Festival and the ongoing weekly Live After Five concerts. But the mistake in the sculpture, which doubles as a stage cover, has postponed the project's conclusion by several months. "We'll probably plan something special for it; it's a very special piece," Rhorer says, comparing the sculpture to...
Real estate recap: 'Wipeout'-style waterpark coming to Watson area … Bistro Byronz, 100 new homes planned at Willow Grove … The Preserve at Harveston set to break ground
Water world: For anyone who has ever watched the ABC television series Wipeout and boasted, "Oh, I could do that," the opportunity to prove it has arrived. Cajun Lagoon—the Capital Region's newest amusement park—offers what's called aqua challenge courses. Essentially a collection of obstacle courses made of inflatables, the 13-acre park near Watson is slated to open May 4. Daily Report has more details here.
Andrews: Bank debt versus permanent debt
I've been fielding calls recently from investors who are wondering whether it would be better to get bank financing for their deals or go to the permanent market. The answer I give is similar to what I tell my students when they ask me similar questions: It depends on the circumstances. Now, I don't mean "it depends" like when you ask your attorney for an answer, and she says: "That's really a question for the jury." Or when you ask your accountant if a deduction is valid, and he says: "It depends on whether you get audited"—at which point you go to your attorney for advice (see first example). And my "it depends" definitely isn't the same as when you ask your appraiser if he is almost finished with a report, and he says: "It depends; who are you again?" (this doesn't apply to all appraisers, of course, but you know who I mean). As to the financing version of "it depends," there are a few solid factors to be considered, the first of which is whether the property is stabilized,...
Cook: Retail building on Coursey sells for $445K
Though the property had been listed for $650,000, D & B Rushing Property LLC sold a retail commercial warehouse building to Alimorad Y. Haghighi II LLC for $445,000 on April 2. Ryan Greene and Wade Greene with Maestri-Murrell Commercial Real Estate brokered the transaction. At 6,891 square feet, the building's sale price works out to about $64.50 per square foot. The property is located on the south side of Coursey Boulevard, between Stumberg Lane and Hickory Ridge Boulevard. The building was formerly occupied by U.U. Rushing Floors and Interiors. The new owner will occupy the building.
(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
Is the party over for mortgage lenders?
JPMorgan Chase and Wells Fargo, the nation's largest banks, say they've seen a decline in applications for home loans, The Washington Post reports, a sign that the strength of the housing recovery may be waning. At JPMorgan, applications fell 8% in the first quarter, compared with the previous quarter, though they were up 1% from a year earlier. Overall revenue from its mortgage division fell 31%. Wells Fargo's mortgage applications also fell 8% in the opening quarter of the year, compared with the last three months of 2012, and were down 25% from the first quarter of 2012. The figures, however, aren't a perfect measure for the health of the housing market. The two banks saw mortgage revenues fall partly because competition increased, squeezing profit margins. In addition, the record-low costs of making loans—spurred by stimulus efforts by the Federal Reserve—have started to rise again. Ken Usdin, an analyst with investment banking firm Jefferies, says the pressure...
Former Blockbuster on Millerville to become Mattress Firm
Mattress Firm is continuing its Baton Rouge expansion with a new location in the old Blockbuster store on Millerville Road near Interstate 12. The new location under development is expected to open within the next 30 days, says Dottie Tarleton, a broker with Stirling Properties who handled the leasing agreement. The 5,500-square-foot store is located in front of Super Target, near Best Buy, Lowe's, Petsmart, Office Depot and Chick-fil-A. It marks the sixth Baton Rouge Mattress Firm location. The new store also marks the final Baton Rouge Blockbuster to get a new tenant since the brick-and-mortar video rental retailer succumbed to the digital age. Shortly after Blockbuster filed for bankruptcy in 2010, the building was purchased in 2011 by Texas-based investor Edry Commercial Properties for a total price of $1 million. Almost a dozen former Blockbuster locations in Baton Rouge have been repurposed, including an Airline Highway location that also has been redeveloped into a Mattress...
Capital Region home sales climb 16% in March
March has been the best month yet this year for home sales in the Capital Region, with approximately 16% more sales recorded than in March 2012, according to the latest report from the Greater Baton Rouge Association of Realtors.
Capital Region home sales climb 16% in March
March has been the best month yet this year for home sales in the Capital Region, with approximately 16% more sales recorded than in March 2012, according to the latest report from the Greater Baton Rouge Association of Realtors. A total of 765 homes were sold during the month in the eight-parish region tracked by the GBRAR, which is 107 more than the total for March last year. Sales were up in January and February, but at a more modest pace of 9% and 5%, respectively. The March report also suggests the Capital Region market has turned the corner to a seller's market. Months inventory—or the number of months it would take to sell all homes on the market at the current pace—was at 5.3 in March, down from 6.9 a year earlier. A months inventory reading below 6 months is generally considered to indicate a seller's market. At the end of the first quarter of the year, home sales in the Capital Region—which includes East Baton Rouge, Ascension, Livingston, West Baton...
Waiting on the state
Costco Wholesale Corp. is awaiting approval from the state on its plan to accommodate increased traffic flow expected near the intersection of Airline Highway and Interstate 12 once its wholesale superstore is built.
Residential market gains ground
Residential markets in most sectors showed increases in sales volume in the previous 12 months. Total sales volume for the Greater Baton Rouge Multiple Listing area increased more than 15% from March 2012 through February 2013 after increasing only 3.91% the previous 12 months.
Bistro Byronz, 100 new homes coming to Willow Grove
Developer Richard Carmouche is planning to build 100 new homes in The Settlement at Willow Grove and has lined up his first commercial tenant for the development—Bistro Byronz, which will open its second Baton Rouge restaurant some time next year. "Our concept has really gelled, and it's really taking off," says Carmouche, who began the project in 2007 shortly before the real estate collapse and has persisted with the project over the past six years despite challenges. The need for the latest residential filing—which, when completed, will fill out the 350-home development—came much more quickly than Carmouche anticipated. "We're just finishing up construction on a group of 49 houses that I thought would last me all year," he says. "In the first quarter we sold all but six, so we need more inventory." The new homes, which will be located in the rear and on the east side of the development, will range from 2,500 square feet to more than 5,000 square feet, in keeping...
The Preserve at Harveston set to begin construction
Residential construction is set to begin in the next two weeks on The Preserve at Harveston, the 95-acre, first phase of Mike Wampold and John Fetzer's planned 1,200-acre TND straddling the Bluebonnet Boulevard extension. Some 350 homes are planned for The Preserve, 93 of which will be constructed on a 33-acre tract that will be the first part of the first phase, Fetzer says. Five local builders have been selected for the project: Colby Constructors, Distinctive Homes by Watson, Dupree Construction, Fetzer Properties of Louisiana and Unified Construction Group. They were selected after a careful vetting by Wampold and Fetzer from about 20 contractors who were interested in working on the project. "We went out and just looked at their product and in most cases we kicked the tires pretty good," Fetzer says. "We just felt these five were the ones we wanted to start with." Homes, which are being designed by LRK's Mike Sullivan, will be priced in the low-to-mid $300,000 range for smaller...
Public to get say on Costco TIF next month
Details on a potential tax increment financing deal for a Costco superstore planned at Airline Highway and Interstate 12 will be revealed on May 8, when a public hearing will take place. The Metro Council on Wednesday approved setting the hearing, but no other details on the envisioned TIF have been set. Metro Councilman Joel Boé says the council will be as eager as the public to see details of the TIF structure. "Nobody had heard or seen anything about it" before Wednesday's meeting, he says. "I'm open-minded to look at it, but having not seen any cost-benefit analysis on it, it's hard to say anything about it right now." While some TIF structures allow developments within a designated area to charge additional sales tax on purchases made within to offset construction costs, city-parish Finance Director Marsha Hanlon told Daily Report on Wednesday: "As I understand it, this would be a rebate" for Costco. The city-parish could opt to rebate part or all of its 2% local sales...
New office park under way on Sherwood Common
Is spec construction back in the local office market? A Shreveport developer apparently thinks so. E. J. Gaiennie is nearing completion on the first of eight units he is constructing on his new development, Sherwood Common Office Park. The complex is located at 4600 Sherwood Common Blvd. on a three-acre tract Gaiennie acquired in late 2011 for $897,000. Andy Roby of NAI/Latter & Blum Commercial Real Estate, who represents the developer, says the eight units will be constructed gradually, based on demand. But he says market research shows a need for the product. "There is demand for this because everything else in that area is older," he says. "This will be new, and there will be a lot of amenities—good finishes and high ceiling—in the units." The units will range in space from 1,137 to 4,592 square feet and will be available for sale or lease as single suites, or in groups of two, three or four. Roby says it's too soon to say how the units will be priced or whether they...
Metro Council to consider Costco TIF
The Metro Council will consider today a proposal from Mayor Kip Holden's office to begin the process of creating a special "economic development district"—that is, set the boundaries for a tax increment financing zone—for the land on which a Costco superstore is planned. City-parish Finance Director Marsha Hanlon says specifics of the potential TIF structure have not yet been determined. However, while some TIF structures allow developments to charge additional sales tax on purchases made within to offset construction costs, Hanlon says, "As I understand it, this would be a rebate" for Costco. The city-parish could opt to rebate part or all of its 2% local sales tax to Costco, which is planning to build a $12 million, 148,000-square-foot superstore on Dawnadele Avenue, near the intersection of Airline Highway and Interstate 12. Plans also call for an adjoining gas station with 16 pumps. "The first step is to create the district and hold a public hearing on it," says...
Monsour to testify Wednesday on bill to clean up blighted property
A House committee is scheduled to take up a proposed constitutional amendment Wednesday that would make it easier for redevelopment authorities around the state to seize blighted properties that have unpaid property tax liens against them. East Baton Rouge Redevelopment Authority President and CEO Walter Monsour, who has worked on the legislation for the past several months, will be among those testifying before the House Ways and Means Committee in favor of House Bill 256. "The whole thrust of the legislation is to deal with properties that have been abandoned—properties the city or parish is forced to maintain and has not been able to collect on the maintenance they have incurred over the years," says Monsour. The amendment, which would have to be ratified by voters in a statewide election, would reduce the redemption time owners of blighted property have to pay unpaid taxes from 36 to 12 months. In New Orleans, it would reduce the redemption period from 18 to 12 months. A...
'Real Estate Weekly': Construction at Casa Colina set to begin
Construction is set to begin in the next 30 days on homes in the Villas at Casa Colina, a 25-acre residential development off Highland Road acquired last summer by a joint venture of several local developers. Level Construction owner Todd Waguespack, who is among those developers, says the 19 homes will be either 3,100 or 4,200 square feet and will be priced somewhere between $500,000 and $700,000. "I think there is going to be great demand for them," says Waguespack, who co-owns the development with John Engquist, Roland Kimbrough and Jack Iverstine. "There's really no other new construction in that area in that price range." Waguespack and the others bought the subdivision in July out of foreclosure from First American Bank, which had taken back the unfinished project from its previous owners in 2007. Its lots measure 65 by 150 feet. Four lots were already sold when Waguespack's group acquired the property. —Stephanie Riegel Read the rest of the new Real...
Real estate recap: EBR building permits fall in February … Panera Bread still on the drawing board for B.R. … DPW officials, architects mapping office space in old Woman's Hospital
By the numbers: The number of building permits issued across East Baton Rouge Parish in February was down 14% compared to the same month a year ago, according to a new report from the city-parish Public Works Department. But while the total of 1,641 permits issued in February was lower than the 1,912 in February 2012, the number of permits for commercial projects was slightly up on the month—70, compared to 68. Daily Report has more details and the full February report here.
Andrews: HUD plans to close 7 days as cost-cutting measure
All federal agencies have been struggling with how to handle the sequestration mess up on Capitol Hill, and some have been told to furlough full-time workers sporadically over a five-month period to save money. Rather than try to work out an enormous number of time sheet modifications, the Department of Housing and Urban Development—those folks that brought us the popular 221(d)4 apartment construction loan—plans to shut down completely for seven days between May and August this year. HUD operations will be shuttered May 10 and 24, June 14, July 5 and 22, and August 16 and 30. According to The Washington Post, the HUD hierarchy decided to avoid burdensome recordkeeping and close the agency after assessing "the logistical complications that would be involved for personnel managers in trying to organize days off for thousands of employees, not to mention their vacation and sick days." What do these departmentwide closures mean for the investment and development...
Cook: Prairieville Burger King sold
The Burger King at 17082 Airline Highway in Prairieville has sold for $1,637,000. US 61 Holdings LLC sold the property to Chang Family Investments LLC. Justin Langlois of Mike Falgoust & Associates Commercial Real Estate brokered the transaction on the 2,400-square-foot restaurant. The sale price calculates to about $680-per-square-foot, but the sale price was also based upon the income generated by the lease. "We are continuing to see compressed cap rates, and I'm not seeing many investment options for those looking to buy," Langlois says. "The net operating income and sales price generated a return to the owner that exceeded 7%. This was the reason they purchased the property."
(Appraiser Tom Cook owns Cook Moore and Associates. Reach him at 293-7006 or TCook@cookmoore.com.)
Registration opens for 25th annual Trends seminar
Some 600 people are expected to attend the 25th annual Trends in Real Estate Seminar, an event highlighting what's happening in all sectors of the Capital Region market. It's set to take place Thursday, April 18. This year's event chairman, Branden Barker, says the presentations by local market experts will once again touch on all sectors—including multifamily, office, residential and retail—as well as the financing picture, with a focus on the forecast of what's to come. 225 Publisher Julio Melara is serving as this year's MC for the event. Trends was launched in 1988 as a joint project of the Commercial & Investment Division of the Greater Baton Rouge Association of Realtors and LSU's Real Estate Research Institute. Registration is now open to real estate professionals as well as the public. Advance registration is $50, while admission at the door is $60. The seminar begins at 7:30 a.m. at the BREC Independence Park Theater, 7800 Independence Blvd., and will...
Cortana manager confident mall can succeed after sale
The manager of Cortana Mall says he believes Baton Rouge is a "two-mall town" that has all the elements needed to revive the ailing shopping center at Airline Highway and Florida Boulevard. The 37-year old mall, which is just 54% occupied, is under new ownership after investors purchased the property last month for $6 million, promising to breathe new life into it. In its heyday, Cortana was the region's premier shopping destination. But since the Mall of Louisiana opened in 1997, Cortana has struggled with changing demographics and a loss of major retailers. Fred Meno, president and CEO of asset services for mall-manager The Woodmont Company, contends that Cortana is well-positioned for prosperity. With a good location and good traffic, he says, the fundamentals for retail success are already in place. A recent market analysis showed an estimated traffic count near the mall of 100,000 vehicles a day. The new owners, Moonbeam Equities, have a strategy to lure value-oriented retailers...
Level Construction ready to begin building at Casa Colina
Construction is set to begin in the next 30 days on homes in the Villas at Casa Colina, a 25-acre residential development off Highland Road acquired last summer by a joint venture of several local developers. Level Construction owner Todd Waguespack, who is among those developers, says the 19 homes will be either 3,100 or 4,200 square feet and will be priced somewhere between $500,000 and $700,000. "I think there is going to be great demand for them," says Waguespack, who co-owns the development with John Engquist, Roland Kimbrough and Jack Iverstine. "There's really no other new construction in that area in that price range." Waguespack and the others bought the subdivision in July out of foreclosure from First American Bank, which had taken back the unfinished project from its previous owners in 2007. Its lots measure 65 by 150 feet. Four lots were already sold when Waguespack's group acquired the property. —Stephanie Riegel
EBR building permits fall in February
The number of building permits issued across East Baton Rouge Parish in February was down 14% compared to the same month a year ago, according to a new report from the city-parish Public Works Department. But while the total of 1,641 permits issued in February was lower than the 1,912 in February 2012, the number of permits for commercial projects was slightly up on the month—70, compared to 68. There were 122 permits issued for new residential builds, additions and renovations, down from 138 in February a year ago. Through the first two months of the year, permitting in 2013 lags 2012 numbers by 7%—3,269, down from 3,515 last year. The largest commercial project permitted in February was Lipsey's Inc.'s new 84,000-square-foot, two-story warehouse on the corner of Reiger Road and Exchequer Drive that will house the headquarter offices and distribution center for the wholesale firearms distributor. The facility, valued at about $9.4 million, is being built on a 5.5-acre...
'Real Estate Weekly': Nicholson corridor project still in the works
While little has been heard publicly in recent years about River District, the planned mixed-use development along the Nicholson Drive corridor, Dalis Waguespack of Moreno Properties says prominent architect Steve Oubre is in the process of finalizing the master plan. "We had to take a break," because of the recession, she says. "Things are coming back together. Lending is available. The housing market is turning around. We're getting excited again over it. We never lost the enthusiasm for the project." Waguespack didn't want to discuss the still-evolving details about the development on 45 acres near Magnolia Mound Plantation, although media reports dating back to 2008 describe a "smart-growth, new urbanist community" with multifamily residences, retail and office space. Waguespack says other projects along the corridor, such as the redevelopment of the former Prince Murat site, are good for River District. "Our studies are strong, and we're excited to have Steve doing it," she...
Update on downtown library design coming
It's been about 10 months since the Metro Council awarded a $1.5 million design contract for a new downtown library to a joint venture by Baton Rouge-based WHLC Architecture and Schwartz/Silver Architects of Boston. Officials from the library system and the design firms are now ready to give the public a glimpse of what the new library at 120 St. Louis St. might look like. An open house-style design update will take place from 4 to 7 p.m. Wednesday in the atrium of the Louisiana Arts and Science Museum, 100 South River Rd., at which architects and library staff will discuss progress on the design process, answer questions and take public comments. The project has been the source of controversy in recent years, both for its estimated cost—$19 million is currently committed to it, including design and engineering work—and for the process...
Real estate recap: Richoux Building sells for $1.2 million … Officials say IBM Services Center will transform Baton Rouge, state … Cortana Mall sold
When the deal goes down: A deal to sell the historic Richoux Building at 302 N. Third St. downtown has closed for $1.2 million. The building—well-known for its neon Coca-Cola sign—was purchased by local businessman Mike Crouch on Thursday from attorney Danny McGlynn, who acquired the midcentury building in 2005 and tried unsuccessfully to redevelop it. Daily Report has more details here.
Andrews: Interest rates remain low at end of first quarter
It's that time again when I tell you that interest rates are low—very low. The prime rate, which is the index most commonly used for short term and floating rate debt, is currently resting at 3.25%, where it has been since January 2009. The driving factor for the prime rate is the federal funds rate, which has remained near zero over the same period. Through the Federal Open Market Committee, the Federal Reserve has stated that the federal funds rate will be held at current levels until at least 2015. Increasing the rate will be triggered by the reduction of national unemployment rate to 6.5% or lower. Even then, the rate will be increased, but will still be held below its expected long-run value. Meanwhile, the benchmark 10-year Treasury rate, the index we use for long-term loans, was around 1.85% at the end of March 2013, and was about 9 basis points higher at this time last year. Long-term Treasury rates are also being held low by activities of the Federal Reserve known as...
Cook: Southgate Village retail center sells
A retail center located within Southgate Village on Burbank Drive that's home to Balfour House, Quizno's, Princeton Review Operations, Cold Stone Creamery and CC's Coffee House, has sold for $3,940,000. At 18,038 square feet, the sale price works out to about $218 per-square-foot. Southgate Village LLC was the seller, and Campus View II LLC was the purchaser. The sale, which closed on March 25, was brokered by Ty Gose, Dave Treppendahl, and Dean Bryson, all with NAI/Latter & Blum Commercial Real Estate. Campus View II is a J.B. Levert Land Company subsidiary. According to Gose, this was an excellent deal for the purchaser, who has previously acquired two other retail properties on Nicholson Drive from Southgate Village. "The rental rates supported the sale price," Gose says. "That coupled with the fact that the location can't be beat, prompted the purchaser to make the investment."
LSU Foundation looking forward to new location
The LSU Board of Supervisors last month approved a ground lease for a new LSU Foundation headquarters at the corner of Nicholson and Skip Bertman drives on the south edge of what is planned as the Nicholson Gateway mixed-use development. However, the size and tenant makeup of the building—which the LSU board also would have to approve—have not yet been determined. For now the foundation expects to occupy about 20,000 square feet, plus additional space for meetings and events, foundation spokeswoman Sara Crow says. A retail presence is also possible, she adds. The location near the heart of campus, and its proximity to the experience of game days for football, will be a "wonderful move forward" for the foundation, Crow says. "That's going to be an advantage for us, to be able to raise more money for LSU," she says. "The more...
Nicholson corridor project still in the works, developer says
While little has been heard publicly in recent years about River District, the planned mixed-use development along the Nicholson Drive corridor, Dalis Waguespack of Moreno Properties says prominent architect Steve Oubre is in the process of finalizing the master plan. "We had to take a break," because of the recession, she says. "Things are coming back together. Lending is available. The housing market is turning around. We're getting excited again over it. We never lost the enthusiasm for the project." Waguespack didn't want to discuss the still-evolving details about the development on 45 acres near Magnolia Mound Plantation, although media reports dating back to 2008 and 2010 describe a "smart-growth, new urbanist community" with multifamily residences, retail and office space. Waguespack says other projects along the corridor, such as the redevelopment of the former Prince Murat site, are good for River District. "Our studies are strong, and we're excited to have Steve doing it,"...
The missing link
No building says “Baton Rouge” more than the Louisiana State Capitol, with the possible exception of Tiger Stadium.
The hard reality of doing residential downtown
The key to downtown development is getting people to live there. But that has proven difficult for a couple of reasons, not the least of which is a shortage of competitively priced apartments and condos.
Richoux Building sells for $1.2 million
A deal to sell the historic Richoux Building at 302 N. Third St. downtown has closed for $1.2 million. The building—well-known for its neon Coca-Cola sign—was purchased by local businessman Mike Crouch on Thursday from attorney Danny McGlynn, who acquired the midcentury building in 2005 and tried unsuccessfully to redevelop it. As reported by Daily Report, Crouch is negotiating with Raising Cane's, which is interested in opening its first downtown restaurant in the building's 8,000-square-foot ground-floor space. Raising Cane's founder and CEO Todd Graves confirms the company is looking at the space and is committed to opening a downtown location. Crouch also previously told...
U.S. construction spending grows, while manufacturing slows
A pair of separate reports out this morning shows spending on U.S. construction projects rebounded in February to the highest level in more than four years, while U.S. manufacturing activity expanded more slowly in March than February. Construction spending rose 1.2% overall in February compared to January, when construction had dropped 2.1%, the Commerce Department reports. Spending rose to a seasonally adjusted annual rate of $885.1 billion, which was 7.9% higher than a year ago. The advance was led by a 2.2% rise in private residential construction, which climbed to an annual rate of $303.4 billion—the best showing since November 2008. Private nonresidential construction was up 0.4% while public construction rose 0.9%. Construction spending is expected to keep growing this year, fueled by more homebuilding and broader improvement in the economy. The Associated Press has more details on that report