Multifamily developments once again topped the list of priciest commercial real estate deals in 2019. Six of the top 10 most expensive transactions last year were apartment complex sales, mostly with out-of-state real estate investors, which has been typical the past few years and suggests the Capital Region market is attractive to investors.
Four of the properties are less than 20 years old, while the other two were built in the 1970s. Besides apartment complexes, out-of-state investors also scooped up two area retail shopping centers. For a second consecutive year, no office building deals made the top 10 list, and for the first time in several years, no medical buildings made the list.
The Millennium at Towne Center
The most expensive commercial real estate transaction of 2019 with a publicly recorded sales price was the spring sale of The Millennium at Towne Center, on Jefferson Highway, for $49.7 million, or $180,087 per unit. Illinois-based Inland Real Estate Group of Companies, an investment firm, bought the property from Thompson National Partners. Inland acquired the property through a statutory trust, Baton Rouge Multifamily. The Millennium also made Business Report’s annual top commercial deals list for 2009, after it changed hands for $39.75 million. The complex, built in 2007, has 276 units over 10.5 acres, and at the time of the sale was 95% occupied. The sale of The Millennium for $49.7 million is the lowest sale price that has made the No. 1 spot on Business Report’s annual top commercial deals list since 2016.
Live Oaks Apartment Homes
In August, Live Oaks Apartment Homes, off Jefferson Highway and Stumberg Lane, was sold for $20.5 million, or $111,413 per unit. Metairie-based Cypress Communities, doing business as Live Oaks Baton Rouge Apartments, bought the property from a New York-based firm. Built in 2001, the complex stretches over 9 acres and has 184 units in nine buildings. At the time of the sale, Live Oaks Apartment Homes was 94% occupied.
21 South at Parkview
A Colorado real estate management company bought the 21 South at Parkview apartment complex on Sherwood Forest Boulevard in February for $20 million. Monarch Investment and Management Group, of Boulder, scooped up the 10-acre property from Patrician Parkview LLC, a subsidiary of Baton Rouge-based Patrician Management, a real estate management company. The complex was built in 1974 and features 264 units, which were 89.3% occupied at the time of the sale. Monarch Investment and Management Group’s footprint stretches over 20 states and the company has nearly 50,000 apartment units in its portfolio. To make the purchase, Monarch used MIMG CXL South LLC, MIMG TT 21 South LLC, as well as Kimberly and Clay Thompson.
In early summer, a Boston-based investment company bought more than 250,000 square feet of industrial warehouse space on Exchequer Drive for nearly $20 million. Stag Industrial Holdings purchased a 109,000-square-foot building currently occupied by air-conditioning system supplier Carrier Enterprise and contractor Carrier South Central. The company also acquired a nearby 144,000-square-foot industrial warehouse used by Houston Wire & Cable Company, Jackson Supply Company, National Tire Wholesale, TireHub and Westlock Controls Corp. The purchase of the two buildings, at 6565 and 6735 Exchequer Drive, grows the company’s portfolio to three properties in Baton Rouge.
Siegen Village Shopping Center
Another out-of-state real estate investment group bought the Siegen Village Shopping Center, located across from Target, for more than $18 million in April. Houston-based Gulf Coast Commercial Group bought the property though GC Siegen LLC from Equity One (Louisiana Portfolio) LLC. Gulf Coast Commercial Group, which also owns developments in Lafayette and Lake Charles, has developed more than 7 million square feet of retail space in a dozen states, according to the group’s website. The roughly 21-acre Siegen Village—built in 1988—is anchored by Office Depot, Planet Fitness and Big Lots, and was 88% occupied at the time of the sale.
Along with 21 South at Parkview, Colorado-based Monarch Investment and Management Group also bought Longridge Apartments, off Sherwood Forest Boulevard near I-10, in September. The company bought the 8-acre property for $16 million from Longridge Apartments LLC. Monarch made the purchase through MIMG CLIV LLC, Longridge SUB LLC, MIMG LR4 Longridge LLC and Luciana Fernandez. The 144-unit complex, built in 2000, was 92% occupied at the time of the sale and features five floor plans for one-, two- and three-bedroom apartments.
At the beginning of the year, New Jersey-based Serenity Apartments Investment LLC bought Serenity Apartments, a 328-unit apartment complex in north Baton Rouge, for $15.5 million. Shlomo Goldwasser is listed as the officer for Serenity Apartments Investment LLC on the secretary of state’s website. Orlando-based private equity firm Elevation Financial Group sold the property after owning it for four years. The group purchased the property, then known as Woodside Manor Apartments, for $4 million in 2016 and invested $3.8 million into restoring the complex. More than 160 units were restored and occupancy rose from less than 50% to 95% at the time of the sale.
Bluebonnet Village Shopping Center
Equity One also sold the Bluebonnet Village Shopping Center in 2019, getting $15.3 million for the 11-acre property. The shopping center, across the street from Perkins Rowe, contains three buildings totaling some 101,500 square feet. Mississippi-based Concord Capital bought the property, which houses Rouses Market, Office Depot, Mi Madras and Roman’s Cafe. The shopping center, built in 1983, was 94.6% occupied at the time of the sale.
Dove Creek Apartments
Dove Creek Apartments, off Airline Highway near Jefferson Highway, was also sold to Boulder-based Monarch Investment and Management Group. The apartments, built in 1978, feature 165 one- and two-bedroom units, which were 93% occupied at the time of the sale in September.
Springhill Suites by Marriott
The SpringHill Suites by Marriott on Howell Boulevard, across from the Baton Rouge Metropolitan Airport, also traded hands between two out-of-state groups. Minnesota-based Oliver Companies, represented by CEO Seth Oliver, acquired the property for $11 million in April. The hospital operator made the transaction through CFOC Baton Rouge LA LLC, buying the property from Apple Nine Louisiana LP, a subsidiary of Richmond, Virginia-based Apple Hospitality REIT Inc., a publicly traded real estate investment trust. The SpringHill Suites by Marriott opened in September 2009 at a time when North Baton Rouge saw several mid-price hotels open in the area. The 119-room hotel is located at Howell Place, the mixed-use development by Richard Preis.