KeyBank National Association has once again asked a judge to postpone the foreclosure sale of Perkins Rowe that was set to take place Wednesday. In a one-page motion filed today, the Ohio-based lender simply says it "needs to postpone the foreclosure sale" and does not provide a reason. This marks the third time that KeyBank has asked for a postponement; at its request, previously scheduled sales in March and May were put off. As of this afternoon, U.S. District Judge James Brady had not yet ruled on KeyBank's latest request for postponement. Sources familiar with the 3.5-year-old court battle between the KeyBank and Perkins Rowe developer Tommy Spinosa predicted the June sale would be postponed, They have told Daily Report that the bank's repeated postponements suggest that KeyBank may be trying to negotiate a deal with Spinosa. Meanwhile, in January, the U.S. Fifth...
The Planning and Zoning Commission has approved a more than 10,000-square-foot commercial development that would include a boutique shop as well as a day care center and an elementary school at the intersection of Congress Boulevard and Perkins Road. The development, which also would include office space and a restaurant, next goes before the Metro Council at the July 17 meeting. Carla Schild, director of Country Day School of Baton Rouge, filed the application for approval. Schild did not immediately respond to a message left by Daily Report seeking further details on the development. The Planning and Zoning Commission also approved a planned unit development concept plan for the Village at Riverwood, a proposed 600-acre mixed-use development on River Road south of LSU. That concept had been previously approved in 2007, but that approval expired when the project was put on hold;
Officials at the Baton Rouge Metropolitan Airport are asking the Planning Commission to rezone about 3.5 acres of undeveloped land on the north side of the airport to make way for an auto auction business announced last fall. The commission will consider rezoning the property off the south side of Blount Road at its July 15 meeting. The land is a part of the larger Aviation Business Park at the airport, which is also home to United Coca-Cola Bottlers and Express Jet Regional Jet Maintenance Center, as well as several government offices. Future tenants planned for the park include Loomis and All Star Chevrolet-North, among others. In October, Auction Broadcasting Co. told Daily Report of its plans for an ABC Baton Rouge auction business at the airport, with company officials estimating they could move as many as 600 cars a week when fully operational. Officials said they planned on employing about 50 workers at the outse, and hoped to increase employment to about 100 by the end...
Done deal: A group of investors led by David Weinstein and local architect Dyke Nelson acquired the Capital One Bank building last week for $4.3 million. The new owners are looking for potential commercial tenants for the eight-story, 111,000-square-foot downtown building while they explore options for mixed-use redevelopment that could include residential space. They also plan to immediately add a 6,000-square-foot ninth floor on the building for use as a penthouse office. Daily Report has the full story here.
I'm stepping back from my self-appointed mission of informing the public that interest rates are going up (they are, you know, and right soon) to remind my friends in the real estate world that June 30 is fast approaching and bankers would appreciate it if you send in your required financial information before the end of the quarter. Bankers worry about such matters because their performance is partially evaluated based on the number of loan files that have missing financial information, and they get written up for an "exception" if they do not get the missing information into the file by the end of the quarter. The second quarter typically finds a large number of exceptions for tax returns or extensions, financial statements from subsidiaries and other items that just could not be prepared by the end of the first quarter. It is time to send that missing information to your banker and keep your file off of the lender's exception list.
Area Wholesale Tire Company is constructing a new 8,000-square-foot warehouse and retail center with five, 22-foot bays on the former Napa Auto Parts at 11860 Airline Hwy. In the name of William B. Potter LLC, AWT purchased the 1.38-acre site last summer for $477,000. The property includes about 150 feet of frontage on Airline and measures roughly 400 feet in depth, with the sale price working out to $8 per square foot (before factoring in the cost of demolishing the existing structure). Austin Earhart with Beau Box Commercial Real Estate brokered the deal. AWT also has a huge warehouse distribution and retail operation on Airline, further north from the new warehouse and retail center. "We are trying to better serve our customers," says Bill Potter with AWT. "We want to be able to provide quick reliable service to people where nobody tries to sell you what you don't need. We are going to concentrate on selling tires, but we will do some alignment." The new facility is currently...
Minorities continue to face discrimination when it comes to finding and securing housing, according to a new study by the Department of Housing and Urban Development and the Urban Institute. "Real estate agents and rental housing providers recommend and show fewer available homes and apartments to minorities than equally qualified whites," HUD says in summary of the study, for which its "paired-testing" consisted of two people—one white and one minority—calling and visiting real estate offices in 28 cities across the country last year. "Although the most blatant forms of housing discrimination have declined since the first national paired-testing study in 1977, the forms that persist raise the costs of housing search for minorities and restrict their housing options." While minorities were usually given an appointment to view available properties with an agent about as often as whites, the study says, their experiences during the appointments were often far different. In...
Officials at the Baton Rouge Metropolitan Airport are asking the Planning Commission to rezone about 3.5 acres of undeveloped land on the north side of the airport to make way for an auto auction business announced last fall. The commission will consider rezoning the property off the south side of Blount Road at its July 15 meeting. The land is a part of the larger Aviation Business Park at the airport, which is also home to United Coca-Cola Bottlers and Express Jet Regional Jet Maintenance Center, as well as several government offices. Future tenants planned for the park include Loomis and All Star Chevrolet-North, among others. In October, Auction Broadcasting Co. told Daily Report of its plans for an ABC Baton Rouge auction business at the airport, with company officials estimating they could move as many as 600 cars a week when fully operational. Officials said they...
Stab's Steak & Seafood, a Wayne Stabiler restaurant, is opening soon in Central's Magnolia Square. So are three other businesses: Avant Tous Beauty Bar and Day Spa, Beau Ideal Salon, and Title Plus. They are joining Bourg Insurance, Edward Jones Investments, B & K Bank, Rabalais Homes, and Wall Décor & More: the existing businesses in the commercial-retail section of Magnolia Square. To celebrate, the Magnolia Square Business Association, along with the Central Chamber of Commerce, is hosting an evening social at Stab's on Thursday, 6 to 8 p.m. "All are invited" to the event, organizers say. Jimmy Nunnally and Steele Pollard are the developers of the TND on Lovett Road in Central.
The U.S. Fifth Circuit Court of Appeals has agreed to hear oral arguments in the nearly four-year-old foreclosure case of Perkins Rowe. The court today said it will set a hearing for the week of Aug. 5 to decide whether the U.S. district court had jurisdiction in the case. Attorneys for developer Tommy Spinosa, who owes some $200 million on the mixed-use development to a consortium of lenders led by KeyBank National Association, have argued repeatedly that the foreclosure suit should have been tried in state court. “We are glad we will have a chance to appeal our case and that our arguments on the issue of jurisdiction will finally be heard,” says Spinosa’s spokesman Jeff Wright. Officials with KeyBank could not be reached for comment. Perkins Rowe is scheduled to be put up for auction June 19 at a foreclosure sale. Sources familiar with the case say that auction is likely to be postponed for reasons unrelated to the appellate court’s actions.
With local home sales 9.8% better in May than they were during the month one year ago—and the average home sales price up nearly 5%—the Greater Baton Rouge Association of Realtors says "the market as a whole has summertime heat." According to GBRAR's latest monthly report, a total of 809 homes were sold last month in the eight-parish region it tracks, compared to 737 sold last May. The average sales price last month was $198,991, up from $196,757 in May 2012. The number of homes on the market was down considerably, at 3,980, or about 14.5% fewer than were up for sale last May. GBRAR's report says, "It seems our collective attention has shifted from monitoring price and sales gains to eagerly anticipating more new listing activity on the part of sellers." The declining number of listings is the "result of an imbalance between strong demand for homes and constrained supply," GBRAR says, adding, "In some markets, purchase agreements are being written up directly after a...
Collis Temple—along with his son Garrett Temple and former LSU basketball star Glenn "Big Baby" Davis—is planning to redevelop his 40-unit DeVille Apartment complex on North Street downtown. Temple has applied for Louisiana Housing Commission tax credits to help fund the overhaul of the 54-year-old building, which was designed by A.C. Lewis. "It is going to be a mixed-income development because we do not want to exclude anybody," Temple says. "We want it to be a complex of inclusion." With the construction nearby of The Elysian—another mixed-income apartment complex—as well as several downtown redevelopment projects and the recent announcement that IBM is opening a technology services center in a riverfront office building, Temple believes the area is poised for growth. "Clearly, with IBM making the move they're making and all the development taking place, there is an opportunity for that complex to be improved," Temple says. "So we're going to do it." Temple...
DMC Carter Chambers' plans for a new $10 million headquarters complex on Highland Road are moving forward, with a groundbreaking expected in three or four months, company officials say. The project, which was first announced in May 2012, will include consolidating existing facilities in Baton Rouge, Gonzales and Prairieville into a single office, warehouse and shop located on roughly 13.5 acres at 19200 Highland Road. The project is a little behind schedule, says vice president of supply chain David Ross, but may end up being a little larger than the 90,000-square-foot facility announced last year. "The plan is basically still the same, but we have tweaked the design here and there, and it might be a tad bit bigger," he says. A plan recently submitted to the city-parish Planning Commission calls for a facility as large as 120,00 square feet, including 75,000 square feet of warehouse and shop space. DMC, which supplies industrial, service and support products, is asking the Planning...
Developer Mike Wampold is optimistic the Metro Council will approve the creation of a new sewer district for his 1,600-acre Harveston development on Nicholson Drive at the Bluebonnet Extension. "A couple of the council people had questions about it, and we met with them and they have met with DPW and their questions have been answered," Wampold says. "Anything could happen, but we feel good about it." Councilman Ryan Heck, the council member raising the most pointed questions about the potential cost to the city-parish of the new district, agrees the measure will likely pass, though he will not be among those voting for it. "I think it's a great development, but I don't care for their sewer plan," says Heck, who explains that part of the business plan of the ongoing city-parish sewer system overhaul factors in thousands of new sewer connections over the next 30 years—new customers, in other words, who will be paying off the massive debt from the program. "We were counting on...
Shooting for the stars: Baton Rouge-based Orion Instruments is planning an expansion of its manufacturing facility on Oak Villa Boulevard, just off South Choctaw Drive. The company is asking the Planning & Zoning Commission for approval to add 36,000 square feet to its roughly 48,900-square-foot headquarters. The commission will take up the proposed expansion July 15, at which meeting it's also scheduled to consider a proposed concept plan revision for the Rouzan TND off Perkins Road. Daily Report has more details here.
The benchmark 10-year U.S. Treasury rate has increased over the past month from 1.75% to about 2.2%. This 45-basis-point increase may not sound like much, but it represents a roughly 25% rate increase and hurts any checkbook when it comes to making a loan payment. The increase has many influences, the biggest being the Fed's indications of changing policies and philosophies about stimulus programs. It's a "good new versus bad news" story because the increased rates also indicate possible strengthening in the economy. Spreads on permanent loans typically widen out when we see such changes, but so far they have stayed the same, possibly meaning that the increases are already cooked into current pricing or that there is some expectation (or hope) that rates will come back down. For now, long-term rates are at their highest point in some time. Stay tuned for what will probably be further increases by year's end in both the index and the spread.
Two tracts of land on Highland Road, located between Airline and Jefferson highways have been purchased by Baton Rouge-based industrial contractor Topcor Companies via Highland Road Investors LLC, represented by Ty Harvison at NAI/Latter & Blum Commercial Real Estate. The first property, at 20269 Highland, was purchased from Hercules Trucking for $1,150,000. Hercules was represented in the deal by Trey Williams of NAI/Latter & Blum. The second, neighboring tract, at 20249 Highland, was formerly occupied by Vaults and More Vaults, and it sold for $399,000. Vaults and More Vaults was represented by Jessie Babcock of Beau Box Commercial Real Estate. The purchase amounted to about 10 total acres between the two sites, with the total sales price working out to about $3.55 per square foot. There were some improvements on the properties that will likely be demolished. According to Harvison, the new owners "were looking at potential uses for the property, but no decisions had been made yet.
The U.S. housing-market recovery is here, but there's a growing debate among bulls and bears over how long it will last and how strong it will become, with both groups pointing to the same demographic data to make their case. As The Wall Street Journal reports, the bulls say the housing market is in the early stages of a rebound that should last several years because the U.S. hasn't built enough housing to support the country's growth. The recession and the foreclosure crisis led to a sharp slump in new-home construction and in household formation. But the population didn't stop growing. Instead, households simply doubled up or added adult family members. The bears argue that the recent gains in housing will be short-lived, pointing to changes in access to credit, elevated consumer-debt levels, and an over-reliance on investors. They don't believe the housing market will crash again, and they concede that it should contribute somewhat to economic growth. But they see little...
Mike Wampold has not yet decided on the final design for one of his latest projects, an apartment complex that will be constructed on the site of One Lakeshore Place apartments on Stanford Avenue, across from University Lake. But the developer says the new, 240-unit complex will be more upscale than the existing 50-year-old complex, which will be demolished at the end of the year. The new complex—which is being designed by Coleman Architects and will complement Wampold's adjacent luxury condo development, The Crescent at University Lakes—will be four stories tall with double-loaded corridors, which means some units will overlook the LSU lakes and others will look out to a courtyard and pool area. "They will be higher-end apartments," says Wampold, whose project was set to go before the Planning Commission Monday for site approval but has been deferred until August. "It will be towards the upper-middle end of the spectrum." Wampold expects the tenant mix to change at the...
DMC Carter Chambers' plans for a new $10 million headquarters complex on Highland Road are moving forward, with a groundbreaking expected in three or four months, company officials say. The project, which was first announced last May, will include consolidating existing facilities in Baton Rouge, Gonzales and Prairieville into a single office, warehouse and shop located on roughly 13.5 acres at 19200 Highland Road. The project is a little behind schedule, says vice president of supply chain David Ross, but may end up being a little larger than the 90,000-square-foot facility announced last year. "The plan is basically still the same, but we have tweaked the design here and there, and it might be a tad bit bigger," he says. Plans recently submitted to the city-parish Planning Commission calls for a facility as large as 120,00 square feet, including 75,000 square feet of warehouse and shop space. DMC, which supplies industrial, service and support products, is asking the Planning...
Baton Rouge-based Orion Instruments is planning an expansion of its manufacturing facility on Oak Villa Boulevard, just off South Choctaw Drive. The company, which is a custom designer and manufacturer of highly specific fluid measurement devices for industrial uses, is asking the Planning & Zoning Commission for approval to add 36,000 square feet to its roughly 48,900-square-foot headquarters. The addition would include another 50 parking spaces to the 85 currently on-site. The headquarters was built in 2010. Orion was named Business Report's 2011 Company of the Year (less than 100 employees) and last year received a Lantern Award from LED. The commission will take up the proposed expansion July 15, at which meeting it's also scheduled to consider a proposed concept plan revision for the Rouzan TND off Perkins Road. The revision, which is the sixth submitted since the development was initially approved in September 2007, is to "realign some of the streets in Rouzan and...
Dean Tower, the 14-story landmark on Florida Boulevard, is now Mid City Tower and will soon host a college, its new owners say. Ann Simmers is a partner in Mid City Tower and director of the Court Reporting Institute of Louisiana, currently on South Harrell’s Ferry Road. She says the school will add business, paralegal and medical classes, and reopen in the fall as Mid City College. Plans are for the school to take up two floors initially and grow over time to fill four floors. Simmers says the building, which is about 60% leased, is getting fresh paint, an outdoor courtyard, and some interior renovations, but is structurally in great shape. She says two chefs have expressed interest in opening a restaurant or banquet facility on the top floor. The building once hosted Top of the Tower restaurant, which Simmers describes as "the Ruth’s Chris of the '70s." She says Mid City Tower will manage the building on-site, and says she looks forward to getting involved in Mid City...
Ground clearing is under way on 40 acres at Ben Hur Road and Burbank Drive for the next massive apartment complex going up in the area: Fairfield at Baton Rouge. The first portion of the 298-unit, 898-bed complex is expected to open in 2014 in time for the start of the fall school semester, with the full build-out completed in 2015. The $36 million development is located on the opposite end of Ben Hur from The Woodlands, a 291-unit complex completed last year, in an area that has become the hottest for new apartment construction aimed at LSU students. "We fell in love with the location," says Zach Johnson, vice president of student housing for Irving, Texas-based Fairfield Residential, whose development in Baton Rouge is its first in Louisiana. "Clearly, it's a proven student housing location, and we think the potential for future commercial growth is really big." The rapid development of apartment complexes along the LSU-area corridor including Ben Hur, River Road and Brightside...
Contractors have begun gutting the old Louisiana Theater building at 336 N. Third St. in downtown as part of an overhaul that the building's owners hope will help attract a new tenant. "We have talked to a number of parties who are interested," says Gordon "Skeet" LeBlanc, who owns the building with his sister, Moffett Strain, and cousins, Dwight and Lyn Singer. "But we figured the best approach is to gut it and let potential tenants look at it to get an idea of what is there and what they can do with it." The 4,000-square-foot building—perhaps better known as the former home of Riverside Patty, which closed in November after serving downtown lunch crowds for 30 years—was built in 1913 and has 40-foot ceilings, which were previously obscured by a false ceiling. LeBlanc says possible tenants include a restaurant, market or business that would use it for office space. The building is just the latest of several historic structures on Third Street to undergo a transformation.
Two tenants have signed letters of intent to move into the second phase of the Acadian-Perkins Plaza shopping center at the corner of Perkins Road and South Acadian Thruway, and construction is scheduled to begin this week on the spaces. John Bugea, whose residential real estate firm is currently located downtown, plans to lease nearly 2,000 square feet on the second level of the shopping center. His two-year-old firm has outgrown its shared office space at Springboard in the Kress Building, and Bugea says he is ready to grow the sales side of his business and add more employees. He hopes to move into the space, which is being built out by Chris Town Construction, by Sept. 1. The Salad Shop is the other new tenant. Owner Bradley Sanchez is planning to lease 1,500 square feet for his concept restaurant on the ground floor of the shopping center. The Salad Shop will offer custom-made salads and wraps from dozens of ingredients. Sanchez, a Baton Rouge native and recent LSU graduate,...
Coming to terms: Attorneys for Creekstone Developers and Associated Concrete Contractors have asked for another 30 days to settle a matter involving a lien on the property at Juban Crossing. In a joint motion filed late last week, lawyers for both firms say the parties have "made great efforts to finalize their settlement efforts, and but for one or two remaining matters, which they believe will be amicably resolved, are essentially complete." In March, U.S. District Judge James Brady gave the parties 60 days to reach an agreement. Daily Report has the full story here.
Pelican Lakes Land Holdings LLC has sold a 69-acre tract to D.R. Horton Inc. for $3,650,000, or about $52,900 per acre. The tract is located off Pelican Lakes Parkway, on the south side of Burbank Drive, west of Gardere Lane. The property will be developed with 300 lots on which D.R. Horton will construct homes that range in price from $200,000 to $400,000; the builder will also spend several hundred thousand dollars to develop an entry off Burbank. The development will feature a clubhouse, pool, park and lake water features. The seller was represented by Dave Treppendahl of NAI/Latter & Blum Realtors; D.R. Horton was represented by Ben Stalter, a partner with Maestri-Murrell Real Estate. Lots should be under construction early this summer.
Baton Rouge area construction employment was 16% higher in April than it was during the month a year previous, making it the fourth-best performing metro of the 339 tracked by Associated General Contractors of America. Construction firms in the Capital Region employed approximately 46,700 two months ago, according to AGCA's latest metro jobs report, about 6,600 more than it did in April 2012. It was also a gain of 700 jobs from March, when Baton Rouge ranked 11th in the nation for year-over-year construction job gains. Of the six Louisiana metros tracked by AGCA, five posted a year-over-year increase in jobs during April, with the Shreveport area the only one that experienced a dip in employment. The Lake Charles area also posted a 16% increase, tying it with Baton Rouge for the fourth-best performance by percentage. Construction employment increased in 170 out of 339 U.S. metro areas on the year in April, while it declined in 123 and was stagnant in 46, according to the AGCA's...
Early one morning last month, lightning struck the Louisiana Realtors' headquarters on Bennington Avenue. By the time CEO Malcolm Young arrived, "the whole building was engulfed in flames," he says. Even after the fire was put out, it was unsafe to go back inside. Fortunately, after Hurricane Katrina in 2005, the organization created a crisis response plan that included having a parallel off-site server, which preserved their membership records and other information. They also have business interruption insurance, which allowed the staff of 10 people to move quickly into a temporary space with rented furniture. With hurricane season upon us, Young says, Louisiana Realtors' experience shows the importance of being ready for disaster. The association may build a new headquarters at the current site or move elsewhere, he says. In assessing its needs, it will consider adding classroom space and consolidating its downtown legislative office with the main building. The goal is to be...
Ground clearing is under way on 40 acres at Ben Hur Road and Burbank Drive for the next massive apartment complex going up in the area: Fairfield at Baton Rouge. The first portion of the 298-unit, 898-bed complex is expected to open in 2014 in time for the start of the fall school semester, with the full build-out completed in 2015. The $36 million development is located on the opposite end of Ben Hur from The Woodlands, a 291-unit complex completed last year, in an area that has become the hottest for new apartment construction aimed at LSU students. "We fell in love with the location," says Zach Johnson, vice president of student housing for Irving, Texas-based Fairfield Residential, whose development in Baton Rouge is its first in Louisiana. "Clearly, it's a proven student housing location, and we think the potential for future commercial growth is really big." The rapid development of apartment complexes along the LSU-area corridor including Ben Hur, River Road and Brightside...
Red River Bank has signed a purchase agreement on a half-acre vacant parcel at the corner of Perkins Road and South Acadian Thruway and hopes to build a new 2,500-square-foot branch on the site, which has long been an eyesore in the neighborhood. Before the deal can close, however, some contingencies in the contract need to be resolved. "Hopefully those issues will be resolved and cleared in the coming months because we think it is a great location," says Red River Bank market president Joanie Netterville. "It's a great area of town and is very convenient for a lot of our clients." Netterville declines to discuss the contingencies. However, court records show the property is the subject of a lawsuit between its current owner, Laurence Brooks, and Jon Claitor, who owns the Acadian-Perkins Plaza shopping center adjacent to the vacant parcel. Claitor is suing Brooks over the servitude that leads from Perkins Road to the 0.5-acre parcel. Because the property has been vacant for more than...
Attorneys for Creekstone Developers and Associated Concrete Contractors have asked for another 30 days to settle a matter involving a lien on the property at Juban Crossing. In a joint motion filed late last week, lawyers for both firms say the parties have "made great efforts to finalize their settlement efforts, and but for one or two remaining matters, which they believe will be amicably resolved, are essentially complete." In March, U.S. District Judge James Brady gave the parties 60 days to reach an agreement. Associated Concrete recorded a lien against the property on Interstate 12 east of Denham Springs in October 2012, claiming it is owed nearly $6.9 million for work on the shopping development. Creekstone Companies/Juban subsequently sued Associated Concrete in Baton Rouge federal court, alleging the lien was improper and had stalled $81 million in financing for the shopping center. Creekstone principal Stephen Keller later issued a statement saying Associated Concrete had...
Danny McGlynn's plan for an artists' workspace and living community in Mid City was dealt another blow recently when the Treasury Department did not award any New Market Tax Credits to the East Baton Rouge Redevelopment Authority. "Everyone was blown away when the RDA didn't get any," McGlynn says, "because we were pretty much a shoo-in." In 2012 he secured $8.1 million in tax credits from the RDA to develop the Circa 1857 artists community but had to forfeit them in November because he was unable to meet a deadline to use the allocation. Though Baton Rouge-based Stonehenge Community Development was awarded $40 million in NMTC this year, McGlynn says his project doesn't qualify for them. "The allocations come in two forms: real estate development and operations funds; and what they got is for operations funds, which cannot be applied to business expansions," he explains. The plan for the artists community calls for expanding the current Circa 1857 complex at Government and South 19th...
Tougher underwriting standards have led to increasing struggles among retirees trying to qualify for a mortgage, but a rule change by the largest players in the home loan business may mitigate their difficulties. As The Washington Post reports, seniors may now use income from their 401(k), IRA and other retirement assets to qualify for a loan; the change has money-saving potential in that it may make possible financing to a loan at a lower interest rate or downsizing to a less costly house or condo. Top credit officials at Freddie Mac, the giant federally controlled mortgage investment company, say a "little known" policy revision now allows seniors and others to use certain retirement account balances to supplement their incomes for underwriting purposes—without actually tapping those balances or drawing down cash. Freddie's revised rule is aimed at the waves of baby boomers heading into retirement status—8,000 a day for the next 18 years, according to one...
Danny McGlynn's plan for an artists' workspace and living community in Mid City was dealt another blow recently when the Treasury Department did not award any New Market Tax Credits to the East Baton Rouge Redevelopment Authority. "Everyone was blown away when the RDA didn't get any," McGlynn says, "because we were pretty much a shoo-in." In 2012 he secured $8.1 million in tax credits from the RDA to develop the Circa 1857 artists community but had to forfeit them in November because he was unable to meet a deadline to use the allocation. Though Baton Rouge-based Stonehenge Community Development was awarded $40 million in NMTC this year, McGlynn says his project doesn't qualify for them. "The allocations come in two forms: real estate development and operations funds, and what they got is for operations funds, which cannot be applied to business expansions," he explains. The plan for the artists community calls for expanding the current Circa 1857 complex at Government and South 19th...
On the move: After a decade at its Corporate Boulevard location, Body Mechanics Personal Fitness will be relocating later this year to 4550 Concord Ave., off College Drive, in the building that was home to Phil's Oyster Bar for several years in the mid-2000s. Body Mechanics owner Kolby Tullier says though the new location will actually be slightly smaller than his existing 3,800-square-foot studio, the newly renovated space will be more functional and will enable his growing business to offer more services and more types of training. Daily Report has the full story here.
The Federal Reserve recently released the minutes of its most recent Federal Open Market Committee meeting, and while we might typically skip right to the interest rate section (rates are low and will stay there for the foreseeable future), there were some comments directly concerning the real estate industry. With regard to the commercial segment, the FOMC reported that conditions in some CRE segments continued to improve in recent months and that outstanding CRE loans held by commercial banks edged up in the past two quarters following a prolonged period of decline. Commercial mortgage-backed security issuance was also strong in the first quarter. It appears that banks are easing up on credit standards for CRE loans. According to the Senior Loan Officer Opinion Survey on Bank Lending Practices, which was conducted in April, more banks are easing standards over the past three months than in previous quarters, while demand for these loans strengthened. Finally, the FOMC reports that...
The percentage of Baton Rouge area homes in foreclosure was flat in March compared to the month previous, but down compared to the same month last year, according to the latest figures from CoreLogic. At 2.1%, the Baton Rouge foreclosure rate remained below the Louisiana rate, 2.21%, and the U.S. rate, 2.84%, in March. The local rate in March 2012 was 2.39%. Baton Rouge's mortgage delinquency rate—that is, the percentage of home loans three months or more past due—was down in March compared to the month and year previous. The 4.95% mortgage delinquency rate in March was down from 5.18% in February and 5.39% in March 2012. The March rate for the Baton Rouge area was also below the state rate of 5.46% and the U.S. rate of 6.01%. The last time the local foreclosure rate was below 2% was December 2009, when it dipped to 1.98%. The highest the rate has climbed since then was 2.82% in February 2011. For historical comparison, the Baton Rouge area foreclosure rate was 1.38% in...
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—and eventually expand the property to make room for the Louisiana Black History Hall of Fame Museum.
The market for home sales has been picking up for a while now. A solid local economy, low interest rates and the release of pent-up demand are some of the most often-cited reasons. And April and May historically are popular months to buy a home.
Instead, the East Baton Rouge Parish Library Board of Control delayed accepting the revised agreement, and said it will begin exploring alternative sites for the south Baton Rouge branch.
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...
KeyBank asks for another postponement of Perkins Rowe foreclosure sale
KeyBank National Association has once again asked a judge to postpone the foreclosure sale of Perkins Rowe that was set to take place Wednesday. In a one-page motion filed today, the Ohio-based lender simply says it "needs to postpone the foreclosure sale" and does not provide a reason. This marks the third time that KeyBank has asked for a postponement; at its request, previously scheduled sales in March and May were put off. As of this afternoon, U.S. District Judge James Brady had not yet ruled on KeyBank's latest request for postponement. Sources familiar with the 3.5-year-old court battle between the KeyBank and Perkins Rowe developer Tommy Spinosa predicted the June sale would be postponed, They have told Daily Report that the bank's repeated postponements suggest that KeyBank may be trying to negotiate a deal with Spinosa. Meanwhile, in January, the U.S. Fifth...
New development at Congress and Perkins OK'd
The Planning and Zoning Commission has approved a more than 10,000-square-foot commercial development that would include a boutique shop as well as a day care center and an elementary school at the intersection of Congress Boulevard and Perkins Road. The development, which also would include office space and a restaurant, next goes before the Metro Council at the July 17 meeting. Carla Schild, director of Country Day School of Baton Rouge, filed the application for approval. Schild did not immediately respond to a message left by Daily Report seeking further details on the development. The Planning and Zoning Commission also approved a planned unit development concept plan for the Village at Riverwood, a proposed 600-acre mixed-use development on River Road south of LSU. That concept had been previously approved in 2007, but that approval expired when the project was put on hold;
'Real Estate Weekly': BTR seeks rezoning approval for auto auctioneer
Officials at the Baton Rouge Metropolitan Airport are asking the Planning Commission to rezone about 3.5 acres of undeveloped land on the north side of the airport to make way for an auto auction business announced last fall. The commission will consider rezoning the property off the south side of Blount Road at its July 15 meeting. The land is a part of the larger Aviation Business Park at the airport, which is also home to United Coca-Cola Bottlers and Express Jet Regional Jet Maintenance Center, as well as several government offices. Future tenants planned for the park include Loomis and All Star Chevrolet-North, among others. In October, Auction Broadcasting Co. told Daily Report of its plans for an ABC Baton Rouge auction business at the airport, with company officials estimating they could move as many as 600 cars a week when fully operational. Officials said they planned on employing about 50 workers at the outse, and hoped to increase employment to about 100 by the end...
Real estate recap: Capital One building sells … Capital Region May home sales up nearly 10% … Council OK's private sewer district for Harveston
Done deal: A group of investors led by David Weinstein and local architect Dyke Nelson acquired the Capital One Bank building last week for $4.3 million. The new owners are looking for potential commercial tenants for the eight-story, 111,000-square-foot downtown building while they explore options for mixed-use redevelopment that could include residential space. They also plan to immediately add a 6,000-square-foot ninth floor on the building for use as a penthouse office. Daily Report has the full story here.
Andrews: End of 2Q looms for exceptions
I'm stepping back from my self-appointed mission of informing the public that interest rates are going up (they are, you know, and right soon) to remind my friends in the real estate world that June 30 is fast approaching and bankers would appreciate it if you send in your required financial information before the end of the quarter. Bankers worry about such matters because their performance is partially evaluated based on the number of loan files that have missing financial information, and they get written up for an "exception" if they do not get the missing information into the file by the end of the quarter. The second quarter typically finds a large number of exceptions for tax returns or extensions, financial statements from subsidiaries and other items that just could not be prepared by the end of the first quarter. It is time to send that missing information to your banker and keep your file off of the lender's exception list.
Cook: Area Wholesale Tire to replace Napa store on Airline
Area Wholesale Tire Company is constructing a new 8,000-square-foot warehouse and retail center with five, 22-foot bays on the former Napa Auto Parts at 11860 Airline Hwy. In the name of William B. Potter LLC, AWT purchased the 1.38-acre site last summer for $477,000. The property includes about 150 feet of frontage on Airline and measures roughly 400 feet in depth, with the sale price working out to $8 per square foot (before factoring in the cost of demolishing the existing structure). Austin Earhart with Beau Box Commercial Real Estate brokered the deal. AWT also has a huge warehouse distribution and retail operation on Airline, further north from the new warehouse and retail center. "We are trying to better serve our customers," says Bill Potter with AWT. "We want to be able to provide quick reliable service to people where nobody tries to sell you what you don't need. We are going to concentrate on selling tires, but we will do some alignment." The new facility is currently...
Study: Minorities still face housing discrimination
Minorities continue to face discrimination when it comes to finding and securing housing, according to a new study by the Department of Housing and Urban Development and the Urban Institute. "Real estate agents and rental housing providers recommend and show fewer available homes and apartments to minorities than equally qualified whites," HUD says in summary of the study, for which its "paired-testing" consisted of two people—one white and one minority—calling and visiting real estate offices in 28 cities across the country last year. "Although the most blatant forms of housing discrimination have declined since the first national paired-testing study in 1977, the forms that persist raise the costs of housing search for minorities and restrict their housing options." While minorities were usually given an appointment to view available properties with an agent about as often as whites, the study says, their experiences during the appointments were often far different. In...
B.R. airport seeks rezoning approval for auto auctioneer
Officials at the Baton Rouge Metropolitan Airport are asking the Planning Commission to rezone about 3.5 acres of undeveloped land on the north side of the airport to make way for an auto auction business announced last fall. The commission will consider rezoning the property off the south side of Blount Road at its July 15 meeting. The land is a part of the larger Aviation Business Park at the airport, which is also home to United Coca-Cola Bottlers and Express Jet Regional Jet Maintenance Center, as well as several government offices. Future tenants planned for the park include Loomis and All Star Chevrolet-North, among others. In October, Auction Broadcasting Co. told Daily Report of its plans for an ABC Baton Rouge auction business at the airport, with company officials estimating they could move as many as 600 cars a week when fully operational. Officials said they...
Magnolia Square adding commercial tenants
Stab's Steak & Seafood, a Wayne Stabiler restaurant, is opening soon in Central's Magnolia Square. So are three other businesses: Avant Tous Beauty Bar and Day Spa, Beau Ideal Salon, and Title Plus. They are joining Bourg Insurance, Edward Jones Investments, B & K Bank, Rabalais Homes, and Wall Décor & More: the existing businesses in the commercial-retail section of Magnolia Square. To celebrate, the Magnolia Square Business Association, along with the Central Chamber of Commerce, is hosting an evening social at Stab's on Thursday, 6 to 8 p.m. "All are invited" to the event, organizers say. Jimmy Nunnally and Steele Pollard are the developers of the TND on Lovett Road in Central.
News alert: Fifth Circuit to hear Perkins Rowe appeal
The U.S. Fifth Circuit Court of Appeals has agreed to hear oral arguments in the nearly four-year-old foreclosure case of Perkins Rowe. The court today said it will set a hearing for the week of Aug. 5 to decide whether the U.S. district court had jurisdiction in the case. Attorneys for developer Tommy Spinosa, who owes some $200 million on the mixed-use development to a consortium of lenders led by KeyBank National Association, have argued repeatedly that the foreclosure suit should have been tried in state court. “We are glad we will have a chance to appeal our case and that our arguments on the issue of jurisdiction will finally be heard,” says Spinosa’s spokesman Jeff Wright. Officials with KeyBank could not be reached for comment. Perkins Rowe is scheduled to be put up for auction June 19 at a foreclosure sale. Sources familiar with the case say that auction is likely to be postponed for reasons unrelated to the appellate court’s actions.
Capital Region May home sales up nearly 10%
With local home sales 9.8% better in May than they were during the month one year ago—and the average home sales price up nearly 5%—the Greater Baton Rouge Association of Realtors says "the market as a whole has summertime heat." According to GBRAR's latest monthly report, a total of 809 homes were sold last month in the eight-parish region it tracks, compared to 737 sold last May. The average sales price last month was $198,991, up from $196,757 in May 2012. The number of homes on the market was down considerably, at 3,980, or about 14.5% fewer than were up for sale last May. GBRAR's report says, "It seems our collective attention has shifted from monitoring price and sales gains to eagerly anticipating more new listing activity on the part of sellers." The declining number of listings is the "result of an imbalance between strong demand for homes and constrained supply," GBRAR says, adding, "In some markets, purchase agreements are being written up directly after a...
Collis Temple planning to redevelop DeVille Apartments
Collis Temple—along with his son Garrett Temple and former LSU basketball star Glenn "Big Baby" Davis—is planning to redevelop his 40-unit DeVille Apartment complex on North Street downtown. Temple has applied for Louisiana Housing Commission tax credits to help fund the overhaul of the 54-year-old building, which was designed by A.C. Lewis. "It is going to be a mixed-income development because we do not want to exclude anybody," Temple says. "We want it to be a complex of inclusion." With the construction nearby of The Elysian—another mixed-income apartment complex—as well as several downtown redevelopment projects and the recent announcement that IBM is opening a technology services center in a riverfront office building, Temple believes the area is poised for growth. "Clearly, with IBM making the move they're making and all the development taking place, there is an opportunity for that complex to be improved," Temple says. "So we're going to do it." Temple...
'Real Estate Weekly': DMC Carter Chambers moving forward with new HQ plans
DMC Carter Chambers' plans for a new $10 million headquarters complex on Highland Road are moving forward, with a groundbreaking expected in three or four months, company officials say. The project, which was first announced in May 2012, will include consolidating existing facilities in Baton Rouge, Gonzales and Prairieville into a single office, warehouse and shop located on roughly 13.5 acres at 19200 Highland Road. The project is a little behind schedule, says vice president of supply chain David Ross, but may end up being a little larger than the 90,000-square-foot facility announced last year. "The plan is basically still the same, but we have tweaked the design here and there, and it might be a tad bit bigger," he says. A plan recently submitted to the city-parish Planning Commission calls for a facility as large as 120,00 square feet, including 75,000 square feet of warehouse and shop space. DMC, which supplies industrial, service and support products, is asking the Planning...
Wampold confident council will OK Harveston sewer district
Developer Mike Wampold is optimistic the Metro Council will approve the creation of a new sewer district for his 1,600-acre Harveston development on Nicholson Drive at the Bluebonnet Extension. "A couple of the council people had questions about it, and we met with them and they have met with DPW and their questions have been answered," Wampold says. "Anything could happen, but we feel good about it." Councilman Ryan Heck, the council member raising the most pointed questions about the potential cost to the city-parish of the new district, agrees the measure will likely pass, though he will not be among those voting for it. "I think it's a great development, but I don't care for their sewer plan," says Heck, who explains that part of the business plan of the ongoing city-parish sewer system overhaul factors in thousands of new sewer connections over the next 30 years—new customers, in other words, who will be paying off the massive debt from the program. "We were counting on...
Real estate recap: Orion Instruments plans expansion; Rouzan seeks concept plan amendment … Plans for pizzeria near Perkins Road overpass 'on major life support' … Bricks discovered at Magnolia Mound spark 'historical mystery'
Shooting for the stars: Baton Rouge-based Orion Instruments is planning an expansion of its manufacturing facility on Oak Villa Boulevard, just off South Choctaw Drive. The company is asking the Planning & Zoning Commission for approval to add 36,000 square feet to its roughly 48,900-square-foot headquarters. The commission will take up the proposed expansion July 15, at which meeting it's also scheduled to consider a proposed concept plan revision for the Rouzan TND off Perkins Road. Daily Report has more details here.
Andrews: Interest rates headed up
The benchmark 10-year U.S. Treasury rate has increased over the past month from 1.75% to about 2.2%. This 45-basis-point increase may not sound like much, but it represents a roughly 25% rate increase and hurts any checkbook when it comes to making a loan payment. The increase has many influences, the biggest being the Fed's indications of changing policies and philosophies about stimulus programs. It's a "good new versus bad news" story because the increased rates also indicate possible strengthening in the economy. Spreads on permanent loans typically widen out when we see such changes, but so far they have stayed the same, possibly meaning that the increases are already cooked into current pricing or that there is some expectation (or hope) that rates will come back down. For now, long-term rates are at their highest point in some time. Stay tuned for what will probably be further increases by year's end in both the index and the spread.
Cook: Topcor buys two properties on Highland Road
Two tracts of land on Highland Road, located between Airline and Jefferson highways have been purchased by Baton Rouge-based industrial contractor Topcor Companies via Highland Road Investors LLC, represented by Ty Harvison at NAI/Latter & Blum Commercial Real Estate. The first property, at 20269 Highland, was purchased from Hercules Trucking for $1,150,000. Hercules was represented in the deal by Trey Williams of NAI/Latter & Blum. The second, neighboring tract, at 20249 Highland, was formerly occupied by Vaults and More Vaults, and it sold for $399,000. Vaults and More Vaults was represented by Jessie Babcock of Beau Box Commercial Real Estate. The purchase amounted to about 10 total acres between the two sites, with the total sales price working out to about $3.55 per square foot. There were some improvements on the properties that will likely be demolished. According to Harvison, the new owners "were looking at potential uses for the property, but no decisions had been made yet.
Housing's up, but is the foundation solid?
The U.S. housing-market recovery is here, but there's a growing debate among bulls and bears over how long it will last and how strong it will become, with both groups pointing to the same demographic data to make their case. As The Wall Street Journal reports, the bulls say the housing market is in the early stages of a rebound that should last several years because the U.S. hasn't built enough housing to support the country's growth. The recession and the foreclosure crisis led to a sharp slump in new-home construction and in household formation. But the population didn't stop growing. Instead, households simply doubled up or added adult family members. The bears argue that the recent gains in housing will be short-lived, pointing to changes in access to credit, elevated consumer-debt levels, and an over-reliance on investors. They don't believe the housing market will crash again, and they concede that it should contribute somewhat to economic growth. But they see little...
Wampold's new apartments on Stanford to be 'higher-end'
Mike Wampold has not yet decided on the final design for one of his latest projects, an apartment complex that will be constructed on the site of One Lakeshore Place apartments on Stanford Avenue, across from University Lake. But the developer says the new, 240-unit complex will be more upscale than the existing 50-year-old complex, which will be demolished at the end of the year. The new complex—which is being designed by Coleman Architects and will complement Wampold's adjacent luxury condo development, The Crescent at University Lakes—will be four stories tall with double-loaded corridors, which means some units will overlook the LSU lakes and others will look out to a courtyard and pool area. "They will be higher-end apartments," says Wampold, whose project was set to go before the Planning Commission Monday for site approval but has been deferred until August. "It will be towards the upper-middle end of the spectrum." Wampold expects the tenant mix to change at the...
DMC Carter Chambers moving forward with new HQ plans
DMC Carter Chambers' plans for a new $10 million headquarters complex on Highland Road are moving forward, with a groundbreaking expected in three or four months, company officials say. The project, which was first announced last May, will include consolidating existing facilities in Baton Rouge, Gonzales and Prairieville into a single office, warehouse and shop located on roughly 13.5 acres at 19200 Highland Road. The project is a little behind schedule, says vice president of supply chain David Ross, but may end up being a little larger than the 90,000-square-foot facility announced last year. "The plan is basically still the same, but we have tweaked the design here and there, and it might be a tad bit bigger," he says. Plans recently submitted to the city-parish Planning Commission calls for a facility as large as 120,00 square feet, including 75,000 square feet of warehouse and shop space. DMC, which supplies industrial, service and support products, is asking the Planning...
Orion Instruments plans expansion; Rouzan seeks concept plan amendment
Baton Rouge-based Orion Instruments is planning an expansion of its manufacturing facility on Oak Villa Boulevard, just off South Choctaw Drive. The company, which is a custom designer and manufacturer of highly specific fluid measurement devices for industrial uses, is asking the Planning & Zoning Commission for approval to add 36,000 square feet to its roughly 48,900-square-foot headquarters. The addition would include another 50 parking spaces to the 85 currently on-site. The headquarters was built in 2010. Orion was named Business Report's 2011 Company of the Year (less than 100 employees) and last year received a Lantern Award from LED. The commission will take up the proposed expansion July 15, at which meeting it's also scheduled to consider a proposed concept plan revision for the Rouzan TND off Perkins Road. The revision, which is the sixth submitted since the development was initially approved in September 2007, is to "realign some of the streets in Rouzan and...
Dean Tower becomes Mid City Tower
Dean Tower, the 14-story landmark on Florida Boulevard, is now Mid City Tower and will soon host a college, its new owners say. Ann Simmers is a partner in Mid City Tower and director of the Court Reporting Institute of Louisiana, currently on South Harrell’s Ferry Road. She says the school will add business, paralegal and medical classes, and reopen in the fall as Mid City College. Plans are for the school to take up two floors initially and grow over time to fill four floors. Simmers says the building, which is about 60% leased, is getting fresh paint, an outdoor courtyard, and some interior renovations, but is structurally in great shape. She says two chefs have expressed interest in opening a restaurant or banquet facility on the top floor. The building once hosted Top of the Tower restaurant, which Simmers describes as "the Ruth’s Chris of the '70s." She says Mid City Tower will manage the building on-site, and says she looks forward to getting involved in Mid City...
'Real Estate Weekly': Student housing boom continues on Ben Hur
Ground clearing is under way on 40 acres at Ben Hur Road and Burbank Drive for the next massive apartment complex going up in the area: Fairfield at Baton Rouge. The first portion of the 298-unit, 898-bed complex is expected to open in 2014 in time for the start of the fall school semester, with the full build-out completed in 2015. The $36 million development is located on the opposite end of Ben Hur from The Woodlands, a 291-unit complex completed last year, in an area that has become the hottest for new apartment construction aimed at LSU students. "We fell in love with the location," says Zach Johnson, vice president of student housing for Irving, Texas-based Fairfield Residential, whose development in Baton Rouge is its first in Louisiana. "Clearly, it's a proven student housing location, and we think the potential for future commercial growth is really big." The rapid development of apartment complexes along the LSU-area corridor including Ben Hur, River Road and Brightside...
Work begins on former Riverside Patty site
Contractors have begun gutting the old Louisiana Theater building at 336 N. Third St. in downtown as part of an overhaul that the building's owners hope will help attract a new tenant. "We have talked to a number of parties who are interested," says Gordon "Skeet" LeBlanc, who owns the building with his sister, Moffett Strain, and cousins, Dwight and Lyn Singer. "But we figured the best approach is to gut it and let potential tenants look at it to get an idea of what is there and what they can do with it." The 4,000-square-foot building—perhaps better known as the former home of Riverside Patty, which closed in November after serving downtown lunch crowds for 30 years—was built in 1913 and has 40-foot ceilings, which were previously obscured by a false ceiling. LeBlanc says possible tenants include a restaurant, market or business that would use it for office space. The building is just the latest of several historic structures on Third Street to undergo a transformation.
Two tenants sign letters of intent at Acadian-Perkins Plaza
Two tenants have signed letters of intent to move into the second phase of the Acadian-Perkins Plaza shopping center at the corner of Perkins Road and South Acadian Thruway, and construction is scheduled to begin this week on the spaces. John Bugea, whose residential real estate firm is currently located downtown, plans to lease nearly 2,000 square feet on the second level of the shopping center. His two-year-old firm has outgrown its shared office space at Springboard in the Kress Building, and Bugea says he is ready to grow the sales side of his business and add more employees. He hopes to move into the space, which is being built out by Chris Town Construction, by Sept. 1. The Salad Shop is the other new tenant. Owner Bradley Sanchez is planning to lease 1,500 square feet for his concept restaurant on the ground floor of the shopping center. The Salad Shop will offer custom-made salads and wraps from dozens of ingredients. Sanchez, a Baton Rouge native and recent LSU graduate,...
Real estate recap: Creekstone and contractors nearing settlement … Red River Bank signs purchase agreement on parcel at Perkins, S. Acadian … Capital Creamery closes in downtown B.R.
Coming to terms: Attorneys for Creekstone Developers and Associated Concrete Contractors have asked for another 30 days to settle a matter involving a lien on the property at Juban Crossing. In a joint motion filed late last week, lawyers for both firms say the parties have "made great efforts to finalize their settlement efforts, and but for one or two remaining matters, which they believe will be amicably resolved, are essentially complete." In March, U.S. District Judge James Brady gave the parties 60 days to reach an agreement. Daily Report has the full story here.
Cook: D.R. Horton buys land for new development
Pelican Lakes Land Holdings LLC has sold a 69-acre tract to D.R. Horton Inc. for $3,650,000, or about $52,900 per acre. The tract is located off Pelican Lakes Parkway, on the south side of Burbank Drive, west of Gardere Lane. The property will be developed with 300 lots on which D.R. Horton will construct homes that range in price from $200,000 to $400,000; the builder will also spend several hundred thousand dollars to develop an entry off Burbank. The development will feature a clubhouse, pool, park and lake water features. The seller was represented by Dave Treppendahl of NAI/Latter & Blum Realtors; D.R. Horton was represented by Ben Stalter, a partner with Maestri-Murrell Real Estate. Lots should be under construction early this summer.
B.R. construction employment ranks 4th nationally in April
Baton Rouge area construction employment was 16% higher in April than it was during the month a year previous, making it the fourth-best performing metro of the 339 tracked by Associated General Contractors of America. Construction firms in the Capital Region employed approximately 46,700 two months ago, according to AGCA's latest metro jobs report, about 6,600 more than it did in April 2012. It was also a gain of 700 jobs from March, when Baton Rouge ranked 11th in the nation for year-over-year construction job gains. Of the six Louisiana metros tracked by AGCA, five posted a year-over-year increase in jobs during April, with the Shreveport area the only one that experienced a dip in employment. The Lake Charles area also posted a 16% increase, tying it with Baton Rouge for the fourth-best performance by percentage. Construction employment increased in 170 out of 339 U.S. metro areas on the year in April, while it declined in 123 and was stagnant in 46, according to the AGCA's...
Louisiana Realtors hope to build new headquarters within a year
Early one morning last month, lightning struck the Louisiana Realtors' headquarters on Bennington Avenue. By the time CEO Malcolm Young arrived, "the whole building was engulfed in flames," he says. Even after the fire was put out, it was unsafe to go back inside. Fortunately, after Hurricane Katrina in 2005, the organization created a crisis response plan that included having a parallel off-site server, which preserved their membership records and other information. They also have business interruption insurance, which allowed the staff of 10 people to move quickly into a temporary space with rented furniture. With hurricane season upon us, Young says, Louisiana Realtors' experience shows the importance of being ready for disaster. The association may build a new headquarters at the current site or move elsewhere, he says. In assessing its needs, it will consider adding classroom space and consolidating its downtown legislative office with the main building. The goal is to be...
Ben Hur continues to see student housing boom
Ground clearing is under way on 40 acres at Ben Hur Road and Burbank Drive for the next massive apartment complex going up in the area: Fairfield at Baton Rouge. The first portion of the 298-unit, 898-bed complex is expected to open in 2014 in time for the start of the fall school semester, with the full build-out completed in 2015. The $36 million development is located on the opposite end of Ben Hur from The Woodlands, a 291-unit complex completed last year, in an area that has become the hottest for new apartment construction aimed at LSU students. "We fell in love with the location," says Zach Johnson, vice president of student housing for Irving, Texas-based Fairfield Residential, whose development in Baton Rouge is its first in Louisiana. "Clearly, it's a proven student housing location, and we think the potential for future commercial growth is really big." The rapid development of apartment complexes along the LSU-area corridor including Ben Hur, River Road and Brightside...
Red River Bank signs purchase agreement on parcel at Perkins, S. Acadian
Red River Bank has signed a purchase agreement on a half-acre vacant parcel at the corner of Perkins Road and South Acadian Thruway and hopes to build a new 2,500-square-foot branch on the site, which has long been an eyesore in the neighborhood. Before the deal can close, however, some contingencies in the contract need to be resolved. "Hopefully those issues will be resolved and cleared in the coming months because we think it is a great location," says Red River Bank market president Joanie Netterville. "It's a great area of town and is very convenient for a lot of our clients." Netterville declines to discuss the contingencies. However, court records show the property is the subject of a lawsuit between its current owner, Laurence Brooks, and Jon Claitor, who owns the Acadian-Perkins Plaza shopping center adjacent to the vacant parcel. Claitor is suing Brooks over the servitude that leads from Perkins Road to the 0.5-acre parcel. Because the property has been vacant for more than...
Creekstone and contractors nearing settlement
Attorneys for Creekstone Developers and Associated Concrete Contractors have asked for another 30 days to settle a matter involving a lien on the property at Juban Crossing. In a joint motion filed late last week, lawyers for both firms say the parties have "made great efforts to finalize their settlement efforts, and but for one or two remaining matters, which they believe will be amicably resolved, are essentially complete." In March, U.S. District Judge James Brady gave the parties 60 days to reach an agreement. Associated Concrete recorded a lien against the property on Interstate 12 east of Denham Springs in October 2012, claiming it is owed nearly $6.9 million for work on the shopping development. Creekstone Companies/Juban subsequently sued Associated Concrete in Baton Rouge federal court, alleging the lien was improper and had stalled $81 million in financing for the shopping center. Creekstone principal Stephen Keller later issued a statement saying Associated Concrete had...
'Real Estate Weekly': Developer still seeking tax credits for Mid City arts community
Danny McGlynn's plan for an artists' workspace and living community in Mid City was dealt another blow recently when the Treasury Department did not award any New Market Tax Credits to the East Baton Rouge Redevelopment Authority. "Everyone was blown away when the RDA didn't get any," McGlynn says, "because we were pretty much a shoo-in." In 2012 he secured $8.1 million in tax credits from the RDA to develop the Circa 1857 artists community but had to forfeit them in November because he was unable to meet a deadline to use the allocation. Though Baton Rouge-based Stonehenge Community Development was awarded $40 million in NMTC this year, McGlynn says his project doesn't qualify for them. "The allocations come in two forms: real estate development and operations funds; and what they got is for operations funds, which cannot be applied to business expansions," he explains. The plan for the artists community calls for expanding the current Circa 1857 complex at Government and South 19th...
Rule change may help retiring boomers secure loans more easily
Tougher underwriting standards have led to increasing struggles among retirees trying to qualify for a mortgage, but a rule change by the largest players in the home loan business may mitigate their difficulties. As The Washington Post reports, seniors may now use income from their 401(k), IRA and other retirement assets to qualify for a loan; the change has money-saving potential in that it may make possible financing to a loan at a lower interest rate or downsizing to a less costly house or condo. Top credit officials at Freddie Mac, the giant federally controlled mortgage investment company, say a "little known" policy revision now allows seniors and others to use certain retirement account balances to supplement their incomes for underwriting purposes—without actually tapping those balances or drawing down cash. Freddie's revised rule is aimed at the waves of baby boomers heading into retirement status—8,000 a day for the next 18 years, according to one...
Developer still seeking tax credits for Mid City arts community
Danny McGlynn's plan for an artists' workspace and living community in Mid City was dealt another blow recently when the Treasury Department did not award any New Market Tax Credits to the East Baton Rouge Redevelopment Authority. "Everyone was blown away when the RDA didn't get any," McGlynn says, "because we were pretty much a shoo-in." In 2012 he secured $8.1 million in tax credits from the RDA to develop the Circa 1857 artists community but had to forfeit them in November because he was unable to meet a deadline to use the allocation. Though Baton Rouge-based Stonehenge Community Development was awarded $40 million in NMTC this year, McGlynn says his project doesn't qualify for them. "The allocations come in two forms: real estate development and operations funds, and what they got is for operations funds, which cannot be applied to business expansions," he explains. The plan for the artists community calls for expanding the current Circa 1857 complex at Government and South 19th...
Real estate recap: Body Mechanics moving to site off College Drive … RDA committee recommends loan approval for Government Street 'model block' project … EBR building permits rise in April
On the move: After a decade at its Corporate Boulevard location, Body Mechanics Personal Fitness will be relocating later this year to 4550 Concord Ave., off College Drive, in the building that was home to Phil's Oyster Bar for several years in the mid-2000s. Body Mechanics owner Kolby Tullier says though the new location will actually be slightly smaller than his existing 3,800-square-foot studio, the newly renovated space will be more functional and will enable his growing business to offer more services and more types of training. Daily Report has the full story here.
Andrews: The fed talks real estate
The Federal Reserve recently released the minutes of its most recent Federal Open Market Committee meeting, and while we might typically skip right to the interest rate section (rates are low and will stay there for the foreseeable future), there were some comments directly concerning the real estate industry. With regard to the commercial segment, the FOMC reported that conditions in some CRE segments continued to improve in recent months and that outstanding CRE loans held by commercial banks edged up in the past two quarters following a prolonged period of decline. Commercial mortgage-backed security issuance was also strong in the first quarter. It appears that banks are easing up on credit standards for CRE loans. According to the Senior Loan Officer Opinion Survey on Bank Lending Practices, which was conducted in April, more banks are easing standards over the past three months than in previous quarters, while demand for these loans strengthened. Finally, the FOMC reports that...
Baton Rouge foreclosure rate holds steady in March
The percentage of Baton Rouge area homes in foreclosure was flat in March compared to the month previous, but down compared to the same month last year, according to the latest figures from CoreLogic. At 2.1%, the Baton Rouge foreclosure rate remained below the Louisiana rate, 2.21%, and the U.S. rate, 2.84%, in March. The local rate in March 2012 was 2.39%. Baton Rouge's mortgage delinquency rate—that is, the percentage of home loans three months or more past due—was down in March compared to the month and year previous. The 4.95% mortgage delinquency rate in March was down from 5.18% in February and 5.39% in March 2012. The March rate for the Baton Rouge area was also below the state rate of 5.46% and the U.S. rate of 6.01%. The last time the local foreclosure rate was below 2% was December 2009, when it dipped to 1.98%. The highest the rate has climbed since then was 2.82% in February 2011. For historical comparison, the Baton Rouge area foreclosure rate was 1.38% in...
Going for two
Russell Mosely is looking to open a second filing of the Long Farm development, which is currently building the first filing on 65 lots.
Looking for a new start
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—and eventually expand the property to make room for the Louisiana Black History Hall of Fame Museum.
Before and after
Completion of the Galvez Plaza sculpture and stage cover has been delayed yet again, this time because of filming in the area.
On the cusp
The market for home sales has been picking up for a while now. A solid local economy, low interest rates and the release of pent-up demand are some of the most often-cited reasons. And April and May historically are popular months to buy a home.
Slow read
Instead, the East Baton Rouge Parish Library Board of Control delayed accepting the revised agreement, and said it will begin exploring alternative sites for the south Baton Rouge branch.
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...