Property: 11770 Airline Highway, Baton Rouge, Louisiana
Building Size: Approximately 7,500 square feet
Purchase Price: $925,000
Cap Rate: 7.70%
Tenant: Lumber Liquidators
Lease Structure: NNN
Representation: Buyer
Advisor: Justin Langlois, CCIM, SIOR
Challenge:
The buyer owns and operates the adjacent property at 11840 Airline Highway. As the company continued to grow, it needed additional land for laydown yard and improved truck circulation. However, opportunities to acquire contiguous property along a major commercial corridor like Airline Highway are very limited.
The challenge was to secure the neighboring property although it was leased to a national tenant.
Actions:
Justin Langlois represented the buyer in acquiring the adjacent Lumber Liquidators property. The transaction allowed the buyer to collect rent from an existing national tenant through the remainder of its lease while securing the property for future use.
The acquisition offered value on two levels:
Results:
The buyer acquired the property for $925,000, representing a 7.70% cap rate based on the current annual rent of $71,250.
Lumber Liquidators will remain in the building through the end of its lease, providing income during the interim. Once the tenant vacates, the buyer can incorporate the building, land, and truck court into its existing operations.
More importantly, the acquisition secured something that could not easily be replicated: an adjoining property on Airline Highway that gives the owner greater control over its surroundings and room to continue growing.
Testimonial
"Buying the property next door just made sense. Justin helped us get the deal done, and now we have the additional space and truck access we’ll need as the business grows."
- Steven Cheatham, Cocreham Brick & Stone Corporation