The outparcel shopping center that adjoins the Albertsons at Airline Highway and Highland Road has sold for $3.2 million.
Consisting of three buildings, the center is home to tenants such as Pet Market, Taco Bell and—my favorite—Cake Goddess. Planet Fitness has signed a lease to occupy most of the 14,500 square feet of vacant space, and will renovate and occupy the building on the south side of Albertsons. There’s also a new yoga studio planned, Hot Worx, that will occupy about 2,500 square feet on the north side, next to Cake Goddess (did I mention Cake Goddess is my favorite?).
The center encompasses 30,550 square feet total, so the sale price works out to about $104.75 per square foot. Airline Highland Building Partners LLC, represented by Steve Legendre at SVN | Graham, Langlois & Legendre, bought the center from William Buckner, represented by Rick Hymel at Select Properties.
“We are going to do some upgrades to the property, and with the Planet Fitness lease in place, we feel like it will generate a capitalization rate north of 9 percent,” says Legendre, who will also be a part owner. “I am excited. I think we will generate excellent returns, and the intersection of Highland Road and Airline Highway has to be one of the best locations in the city, so we think we made a pretty good deal.”
North Baton Rouge apartments sell
Over the last 15 to 20 years, BMW Holding LLC had acquired more than three hundred apartment units in as many as eight different complexes in the north Baton Rouge area. But BMW sold the last of its holdings on Jan. 20 to Prescott Brookstown LLC for $2.1 million.
The sale consisted of two different apartment projects: The Prescott Apartments at 5617 Prescott Road and The Howell Park Apartments at 3942 West Brookstown Dr. The Prescott Apartments includs 60 units and had been listed for $1.7 million before selling for $1.6 million. The Howell Park project consists of 20 units, and had been listed for $550,000 before selling for $500,000. Combined, the sale price works out to $2.1 million for 80 units, or $26,250 per unit. The Howell Place project had recently been renovated and the Prescott project was reported to be in good condition at the time of sale.
“The projects were both primarily one-bedroom units and combining both complexes makes them easier to manage,” says Troy Daigle with NAI/Latter and Blum, who brokered the transaction. The apartment market is pretty soft, Daigle says, but the project was about 90% occupied at the time of sale. “The units were renting for between $500 and $600 per month, and the purchasers felt like the property would generate about a 9 percent capitalization rate.”
The demand for lower cost apartments has remained stable in north Baton Rouge, potentially due to the fact that some units that flooded in August 2016 have not come back online, increasing the demand for habitable units. Also, no new units have come online in the area in several years.
Tom Cook of Cook, Moore and Associates has been an independent real estate appraiser for more than 20 years.