Challenges:
The property at 214 Ocean Drive, a single-tenant office investment in Baton Rouge's re-emerging Mid City corridor, faced its share of challenges. The primary issue was the difficulty in obtaining financing for commercial properties, especially given the market conditions. Additionally, there was market skepticism due to the short-term lease extension with the current tenant, ResCare, which extended only until February 2025. The property's history as a commercial insurance agency and charter school also required careful positioning to highlight its investment stability.
Actions:
To overcome these challenges, we implemented a multi-faceted approach. First, we provided potential buyers with detailed and transparent financial summaries, emphasizing the property's solid NOI and attractive cap rate. We highlighted the recent renovations, including a new roof in 2020 and parking lot repairs in 2021, to showcase the property's maintained and improved condition. Additionally, we leveraged the tenant's status as the largest diversified health and human services provider in the U.S. to enhance the perceived stability and desirability of the investment. Our team also worked closely with financial institutions to facilitate understanding and confidence in the property's value and potential returns.
Results:
Our strategic actions led to the successful sale of the property:
Despite the financing challenges, our efforts in marketing, financial transparency, and emphasizing the tenant's stability facilitated a smooth transaction, meeting the client's investment goals.
Testimonial
"Working with Justin Langlois is always fun and exciting. His expertise navigating the financing challenges and highlighting the strengths of our property was instrumental in achieving a successful sale. I am highly satisfied with the outcome."
- Susan Thibodeaux