When Colliers International Capital Investments Advisory Team announced Wednesday that the Bon Carré Technology Center on Florida Boulevard is up for sale, it took some by surprise—among them, the chairman of the Research Park Corporation, which is one of the long-standing tenants in the building and at one time owned a portion of the property.
But a spokeswoman for Commercial Properties Realty Trust—the for-profit arm of the Baton Rouge Area Foundation, which indirectly owns a majority interest in the 725,000-square-foot development of office and retail space—says the decision to sell “has been part of our strategic asset planning for a while.”
The spokeswoman, Tina Rance, declines to elaborate. But observers say it makes sense for a couple of reasons.
“Commercial Properties has been known to free up capital by selling off properties they’ve developed like the Hilton downtown and Acadian Village on Perkins Road,” says Wesley Moore, an appraiser with Cook, Moore and Associates. “Their mission is supposed to redevelop eyesores.”
The decision could also be a function of timing. A restoration tax abatement that the developers received when they acquired the building, could be ending if it hasn’t already. A restoration tax abatement freezes property taxes at the sale price for five years with a five-year renewal.
There’s no asking price on the property, which does not include the building that houses Cox Communications but does include two outparcels—a Dollar Tree and a Go Auto insurance office. But experts say it could fetch anywhere from $40 to $80 per square foot. Occupancy is currently averaging around 67%, according to Chris Boyd, who is marketing the property for Colliers, though historical occupancy over the past decade has averaged 80%.
Since the property hit the market earlier this week, initial interest has been strong—and not only from regional investors, Boyd says.
“This is getting a lot of national attention,” he says. “It’s an opportunity for an investor to acquire critical mass in a single transaction, given that this is 725,000-square-foot building. Also, an investor can get a return in Baton Rouge they might not be able to earn in Atlanta, Dallas or Chicago.”
—Stephanie Riegel
